The Iloilo Provincial Investments Promotion Code of 2011

September 21, 2011 Excerpt from the Minutes of the Regular Session of the 10th Sangguniang Panlalawigan ng Iloilo, Held in the Session Hall of the New Iloilo Provincial Capitol, Bonifacio Drive, Iloilo City on September 21, 2011. HTcADC PRESENT: Hon. Oscar "Richard" S. Garin, Jr. Presiding Officer Hon. Macario N. Napulan Floor Leader Hon. Gerardo N. Flores Member Hon. June S. Mondejar Member Hon. Demetrio P. Sonza Member Hon. Emmanuel R. Gallar Member Hon. Hernan G. Biron, Jr. Member Hon. Shalene Palmares-Hidalgo Member Hon. Jett C. Rojas Member Hon. Suzette Tenefrancia-Alquisada Member (President, PCL) Hon. Jeneda Salcedo-Orendain Member (Liga President) Hon. Charmine Padernal Devicente Member (PPSK President) ON LEAVE: Hon. Niclo C. Tupas Member ON SICK LEAVE: Hon. Licurgo P. Tirador Member PROVINCIAL ORDINANCE NO. 088-11 "AN ORDINANCE ADOPTING THE ILOILO PROVINCIAL INVESTMENTS PROMOTION CODE OF 2011" Sponsored by: Hon. Charmine P. Devicente and Hon. Jett C. Rojas WHEREAS, in compliance with the mandate of Sections 16 and 17 (a) and (b) (3) (ii) (ix) (x) (xi) and (xii) of Republic Act 7160 otherwise known as the Local Government Code of 1991, the Iloilo Provincial Government has come up with a system for investment and promotion for the Province; WHEREAS, the Iloilo Provincial Investments Promotion Code of 2011 is intended to expedite and facilitate the economic growth and development of the Province of Iloilo as well as to establish a favorable and stable policy on business that will encourage and support private sector investments and operation of business activities consistent with the development needs and environmental objectives of the Province; WHEREAS, the preferred investment areas are as follows: a. Agri-Business b. Tourism and Other Related Enterprise c. Manufacturing d. Property Development and e. Services and Other Service Oriented Enterprises ; NOW, THEREFORE, on motion of the Honorable Macario N. Napulan, Floor Leader, upon the sponsorship of the Hon. Charmine P. Devicente and Hon. Jett C. Rojas, which was unanimously seconded, aScITE BE IT ORDAINED, as it is hereby Ordained, by the Sangguniang Panlalawigan in session assembled: ILOILO PROVINCIAL ORDINANCE NO. 088-11 AN ORDINANCE ADOPTING THE ILOILO PROVINCIAL INVESTMENTS PROMOTION CODE OF 2011 CHAPTER I Title and Declaration of Policy SECTION 1. Title . This ordinance shall be known and cited as " The Iloilo Provincial Investments Promotion Code of 2011 ." SECTION 2. Declaration of Investment and Promotion Policy . It is hereby declared as a policy of the Provincial Government to promote, strengthen and encourage growth and development of industries and relevant economic activities in the productive sectors of the province particularly in agri-business, tourism and tourism-oriented enterprises, manufacturing, property development, information and communications technology or business process outsourcing, services and other service-oriented enterprises. To this end, the Provincial Government of Iloilo shall endeavor to spur the growth and development of various industries and support services through sound economic policies and ordinances throughout the Province thereby attaining countryside economic stability and growth of the Province of Iloilo. Along this line, the following are the policies of the Province: DETACa a) To encourage local and foreign investment or joint ventures that would utilize local labor, substantial amount of indigenous raw materials and other natural resources of the province within the context of sustainable environment and natural resources management; b) To attract and encourage investments in priority areas that significantly expand livelihood, employment opportunities and enhance the economic value of products, promote the welfare of provincial consumers and transfer relevant technologies in agri-business, tourism and tourism oriented enterprises, manufacturing, property development, information and communications technology and other service-oriented enterprises; c) To promote the Province of Iloilo as a favorable investment destination with available skilled manpower, adequate power supply, adequate road infrastructure, adequate water resources and communication facilities easily accessible to the global market; d) To promote active participation of the private sector and non-government organization as partners and catalysts in achieving the development goals of the province; and e) To sustain investments in the Province by ensuring stability and a level playing field in the implementation of laws, regulations and policies and by assuring investors of peace, order and security. SECTION 3. Scope and Coverage . This Code shall apply to all individuals, entities or enterprises, belonging to micro-, small-, medium- and large-scale categories in preferred areas of investment in agri-business, tourism and tourism-oriented enterprises, manufacturing, property development, information and communications technology, other service-oriented enterprises and other areas of investments as may be determined from time to time by the Board. SECTION 4. Rules on Interpretation . Any doubt or conflict arising under the Code shall be resolved in a manner consistent with national and local legislation, executive issuances, administrative regulations as well as applicable jurisprudence and its provisions shall be liberally construed to best carry out its objectives. CHAPTER II Objectives SECTION 5. In pursuance of the policy stated in Section 2 hereof, the following shall be the objectives of this Code: a. To encourage Filipino and foreign investments or joint ventures, public-private partnerships and tie-up in projects to develop agri-business, tourism and tourism-oriented enterprises, manufacturing, property development, information and communications technology and other service-oriented enterprises which will bring about greater economic growth, provide more opportunities for employment and raise the standard of living of Ilonggo men and women; b. To attract domestic and foreign investors and encourage them to establish enterprises that are capital-intensive utilizing a substantial amount of human resource/labor available in the Province; c. To promote the optimum utilization of domestic raw materials available in the Province without necessarily resulting in environmental/ecological degradation; d. To provide fiscal and non-fiscal incentives to local and foreign investors and encourage them to locate in the Province of Iloilo; e. To develop markets for Iloilo products in order to attain a rising level of production and employment, hasten the economic development in the Province of Iloilo and assure that the benefits of development accrue to the Filipinos in general and the Ilonggos in particular; and aDSIHc f. To accelerate the development of agriculture, fisheries, tourism and industrial sectors by dispensing productive employment and income opportunities in the countryside aimed at attaining self-sufficiency in basic commodities and raw materials as well as increasing production of crops and other products. CHAPTER III Definition of Terms SECTION 6. Definition of Terms . When used in this Code, the following words or phrases shall mean as follows: a. "Academe" refers to colleges and universities situated within the Province of Iloilo; b. "Agri-business" refers to a business that earns most of all its revenues from agriculture devoted to the production, processing, and distribution of food and by-products; c. "Board" refers to the Iloilo Provincial Investments Promotion Board (IPIPB); d. "Capitalization" means the paid-up capital of a corporation, cooperative, or association or such amount invested in a single proprietorship or partnership which may be in cash or in property as allowed by law; e. "Code" refers to the Iloilo Provincial Investments Promotion Code of 2011; f. "Environmental management plan" refers to a site-specific plan developed to ensure that all necessary measures are identified and implemented in order to protect the environment and comply with environmental legislation; g. "Existing enterprises" refer to establishments or enterprises whose present base of operation or production is physically located within the territorial jurisdiction of the Province; h. "Expansion projects" refer to undertakings for the modernization and rehabilitation of existing enterprises involving an increase in the existing volume or value of production, or upgrading of the quality of registered product or increase in efficiency and productivity within the territorial jurisdiction of the Province of Iloilo, under such guidelines as the Board may adopt; i. "Gender equality" refers to a social order in which women and men share the same opportunities and the same constraints on full participation in both economic and domestic realm; j. "Generation of high levels of employment" refers to the ability of investments to generate jobs for the local economy preferably but not limited to utilizing available local manpower and resources; k. "High degree of value added features" refers to the quality of investments that transform raw inputs into processed outputs of higher market value; l. "IPIPU" refers to the "Iloilo Provincial Investments Promotion Unit" created under this Code that serves as the Secretariat and implementing arm of the Board; ETHIDa m. "IT/BPO" or "Information Technology/Business Process Outsourcing" refers to the contracting of the operations and responsibilities of specific business functions or processes to a third-party service provider; o. "Investment Priorities Plan" means the overall plan formulated by the Board and adopted by the Sangguniang Panlalawigan of the Province of Iloilo; p. "Large-scale enterprise" refers to an enterprise with a capitalization of more than One Hundred Million Pesos (>P100,000,000.00); q. "Local personnel or worker" refers to workers who are bona fide residents of the Province employed in an enterprise registered under this Code; r. "Medium-scale enterprise" refers to an enterprise with a capitalization of more than Fifteen Million Pesos (>P15,000,000.00) up to One Hundred Million Pesos (<P100,000,000.00); s. "Micro-scale enterprise" refers to an enterprise with a capitalization of Three Million Pesos (P3,000,000.00) or less; t. "New investors/enterprises" refer to investors or enterprises that are not currently engaged in any kind or type of business in the Province of Iloilo but intend to actually establish their place of operation or production within its territorial jurisdiction. Existing investors who will engage in business other than their existing business or enterprise shall be considered new investors or enterprises; u. "Preferred areas of investments" refer to economic activities that are related to agri-business, tourism and information and communications technology and are declared as priority investment areas under this Code or by the Board in accordance with the provision of this Code; v. "Registered enterprise" refer to enterprises or business registered in accordance with the provision of this Code; w. "Sex disaggregated data bank" refers to every data that is cross-classified by sex, presenting information separately for men and women and boys and girls; x. "Small-scale enterprise" refers to an enterprise with a capitalization of more than Three Million Pesos (P3,000,000.00) up to Fifteen Million Pesos (<P15,000,000.00); y. "Social responsibility" refers to the idea that businesses should not function amorally but instead should contribute to the welfare of their communities; z. "SP" refers to the Sangguniang Panlalawigan ng Iloilo; aa. "Tax incentives" refers to fiscal and non-fiscal incentives as provided for in this Code; and bb. "Women microenterprises" refer to the development of the entrepreneurial capacities and economic participation of women as a significant group active within the micro-enterprise sector. CHAPTER IV Creation, Composition, Meetings, Powers and Functions of the Iloilo Provincial Investments Promotion Board (IPIPB) SECTION 7. The Iloilo Provincial Investments Promotion Board . There is hereby created a body to be known as the Iloilo Provincial Investments Promotion Board whose members shall be appointed by the Governor vested with powers and functions as provided in this Code. SECTION 8. Composition of the Board . The Board shall be composed of the following: cSEDTC Chairperson: Provincial Governor Vice Chairperson: Provincial Administrator Representative of the private sector from the Board, chosen from among themselves Members: SP Chair, Economic Affairs and Investment SP Chair, Appropriations SP Chair, Ways and Means SP Chair, Culture, History, Arts and Tourism SP Chair, Agriculture Provincial Director, Department of Trade and Industry President, League of Municipalities Two (2) representatives, Business Sector Representative, Tourism Industry Representative, IT/BPO Industry Representative, Agri-Business Representative, Academe Ex-Officio Members: Provincial Planning and Development Coordinator Provincial Budget Officer Provincial Treasurer Provincial Assessor Provincial Tourism Officer Provincial Agriculturist Provincial Environment and Natural Resources Officer Provincial Legal Officer Head, Iloilo Provincial Investments Promotion Unit Secretariat: Iloilo Provincial Investments and Promotion Unit (IPIPU) The representatives from the accredited business sector, tourism, IT/BPO industry and academe shall be appointed for a term of two (2) years by the Provincial Governor upon recommendation of the sectors they represent. The membership of the Board may be increased or decreased by the Sangguniang Panlalawigan upon the recommendation of the Board for the effective implementation of this Code. SECTION 9. Board Meetings and Quorum . Within sixty (60) days upon approval of this Code, the Provincial Governor, in his capacity as Chairperson, shall convene the Board after appointing the members as mentioned in Section 8 hereof. The Board shall meet at least once every quarter or as may be necessary. The presence of simple majority of its voting members shall constitute a quorum and a majority of the quorum of a meeting shall be required to exercise its power and perform its functions. SECTION 10. Powers and Functions of the Board . The Board shall be vested with the following powers and functions: a. To formulate rules and regulations as well as systems and procedures to attain the objectives and implement the provisions of this Code; b. To initiate the conduct of technical researches on the priority investment areas as well as the appropriate incentives and support measures to be extended to registered enterprises as may be recommended by the IPIPU; c. To formulate and adopt a long-range investment promotions program and to provide corresponding incentives and support measures to attract target investors; d. To supervise the operations and activities of IPIPU for the effective implementation of the provisions of this Code; e. To review and update the fiscal and non-fiscal incentives granted to registered enterprises under this Code; f. To generate additional funding and resources to supplement the budgetary support provided by the Province for the implementation and operation of this Code; SDAaTC g. To undertake active advocacy campaigns for infrastructure programs aimed at providing necessary facilities as well as policy reforms to enhance the investment climate in the Province; h. To approve any application for incentives, imposing such terms and conditions as it may deem necessary; i. To cancel the incentives or suspend the enjoyment of incentives or benefits by any registered enterprise for failure to comply with or violations of the terms and conditions of registration set by the Board, after due notice to such enterprise and giving it an opportunity to be heard; and j. To enter into such agreements with any entity to achieve the purpose of simplifying systems, procedures, and requirements on investments and business operation in the Province of Iloilo. SECTION 11. Honoraria . Only non-government members of the Board may receive honoraria at the rate to be fixed by the Board in accordance with existing laws. SECTION 12. Powers and Functions of the Chairperson . The Chairperson of the Iloilo Provincial Investments Promotion Board (IPIPB) shall have the following powers and functions: a. To appoint the members of the Board per Section 8 hereof; b. To preside over the regular and special meetings of the Board; c. To render annual reports to the Province and such special reports as may be requested; d. To recommend to the Board policies and support measures that may be deemed necessary to carry out the objectives of this Code; e. To exercise such other powers and perform such other duties as may be authorized by the Board. SECTION 13. Iloilo Provincial Investments Promotion Unit (IPIPU). There is hereby created a body to be known as the Iloilo Provincial Investments Promotion Unit which shall serve as liaison and technical secretariat of the Board and shall assist the Board in the delivery of its functions, among others: a. To provide information on investment opportunities, business procedures, permit requirements, government regulations and other data required by the investor; b. To design and implement marketing and promotion strategies; c. To assist in (1) processing and securing licenses, permits and incentives from local and national government agencies; and (2) identifying business or joint venture partners, raw materials and supplies, possible business sites and other requirements of existing and potential investors and enterprises; d. To establish and maintain a sex disaggregated data bank on general business information, information on economic activities, available technology, financing sources and other relevant data or information; e. To collate, analyze and compile pertinent data, information and studies concerning areas that have been or may be declared as "preferred/priority areas of investments" by the Board; f. To make referrals to relevant government bodies, support organizations, service providers and important contacts; g. To organize appointments, itineraries and site visits including facilitating arrangements for logistical support; h. To prepare updates regarding major infrastructure projects in the province both existing and planned, as well as other programs and developments that will impact the business environment; acEHCD i. To undertake an active advocacy campaign to push infrastructure programs aimed at providing necessary facilities, as well as policy reforms to enhance Iloilo's investment climate. j. To establish and maintain networking relations with counterpart investment promotion organizations and coordinate with support agencies of government and the private sector in investment promotion efforts; k. To prepare the agenda for the meetings of the Board; l. To submit annual reports on the activities of the Unit to the Board through the Chairman within ninety (90) days after the last day of the calendar year. CHAPTER V Investment Priorities Plan SECTION 14. Investment Priorities Plan . The Investment Priorities Plan is the over-all plan formulated by the Board and adopted by the Sangguniang Panlalawigan which includes and contains the analysis, synthesis and projections of data collected by the Board from public and private sectors, which measure and indicate the following: 1. The existing and prospective demand for specific products and commodities, final and intermediate, in light of the level and structure of income, production, trade, prices and relevant economic and technical factors; 2. The existing capacities for producing specific products and commodities manufactured out of or with the use of domestic raw materials, the export of which should be encouraged; 3. The gaps and prospective demand and existing supply for specific products and commodities, and the additional production capacities that must be induced where such gaps exists; 4. The specific areas of economic activity to be declared as preferred areas of investment and their corresponding capacities; 5. The areas where such additional capacities can be located considering the presence of natural resources, labor, transport facilities, power, water supply and the like; 6. The capital investment necessary to bring such needed additional capacities and their sources, whether domestic or imported; 7. The raw material input requirements of the additional capacities needed, and the sources thereof, whether domestic or imported; 8. The needed technology to produce development specifically the promotion of women microenterprises; 9. The respective roles and responsibilities of the private sectors and the government and the capital investments required of each to make private investments in preferred areas feasible; 10. The specific public works projects that need to be undertaken by the government and the capital investments required, to make investments in preferred areas feasible; 11. The minimum requirements for maintaining conditions of competition in any industry; and 12. Other similar relevant factors which the Board considers desirable to include: (a) The list of export products or services that should be encouraged with priority, considering the following: (i) The comparative advantage they enjoy or could be made to enjoy; (ii) Their potential for earning foreign exchange; and (iii) Their significant contribution to the national economy. (b) Additional volume of agricultural production and related services necessary to supply the needs of the economy including the export market, which can qualify for incentives under this Code; SDHTEC (c) Public utilities which can qualify for incentives under this Code and which shall be supported by studies of existing and prospective demands for such services in the light of the level and structure of income, production, trade, prices and relevant economic and technical factors of the regions as well as the existing facilities to produce such services; and (d) Specific activities where the potential for utilization of conventional and non-conventional sources of energy can be best promoted. SECTION 15. Criteria in Determining Investment Priority Areas . The determination of the preferred areas of investment to be listed in the Investment Priorities Plan shall be based on the following: a. Long-term competitive advantage b. Environmental impact c. Economic viability d. Extent of the projects' contribution to the local economy e. Social responsibility f. Gender equality The Board shall give priority to projects with the highest rate of return favorable to the local economy. No project shall be included in the investment priorities plan nor declared as preferred area of investment, unless shown to be economically, technically, financially and ecologically sound after thorough investigation and analysis by the Board. SECTION 16. Preferred Investment Areas . In the initial years of implementation, the following shall be adopted as priority investment areas by the Board: Agri-business (Agriculture and Fisheries) 1. Palay, sugar and corn production, processing and value-adding 2. Fruits and vegetables production, processing and value-adding 3. Fishery production, processing and value-adding 4. Poultry and livestock production, processing and value-adding 5. Seaweed production and processing 6. Aquaculture 7. Fish landing facilities 8. Cold storage 9. Vapor heat treatment/irradiation 10. High-value crop/seed production 11. Feed mill 12. Alternative fuels including bio-diesel etc. 13. Organic fertilizer production Tourism and other tourism oriented enterprises: 1. Accommodation facilities 2. Transportation services (land, air and sea) 3. Restaurants/food services 4. Natural and adventure parks 5. Adventure and extreme sports 6. Zoological and botanical parks AScHCD 7. Heritage tourism (landmarks and monuments) 8. Pilgrimage tourism (retreat houses, pilgrimage shrines) 9. Wellness/medical tourism 10. Farm tourism 11. Cultural tourism 12. Tourism schools and training centers 13. Tourism estate management services 14. Tour and travel services 15. Guiding services 16. Shops and department stores Manufacturing 1. Electronics 2. Ship building/ship repair 3. Assembly plants 4. Steel production 5. Metal crafts 6. Furniture/furnishings 7. Garments 8. Gifts, toys and house wares 9. Handicrafts 10. Fashion accessories 11. Ice plants Property Development 1. Housing development 2. Retirement village 3. Convention and cultural facilities 4. Information technology park Services and other Service Oriented Enterprises: 1. IT/Business process outsourcing 2. Research and education infrastructure support facilities 3. Sports facilities 4. Media/advertising 5. Medical services/facilities 6. Electronics and telecommunications enterprises 7. Financial services 8. Engineering/architectural services and other infrastructure 9. Development of alternative and renewable energy and water resources 10. Carbon trading 11. Human resource development 12. Port facilities 13. Logistics services SECTION 17. Determination of Additional Investment Areas . Additional economic activities may be included in the list of priority investment areas upon approval by the Board and shall then be adopted for the implementation under this Code. The inclusion of investment priority areas shall be based on the following factors: 1. Generation of high levels of employment 2. High degree of value added features 3. Creation of linkages or inclusion of corporate social responsibility 4. No deleterious effect to the environment AcICHD The Board, however, may recommend to the Sanggunian Panlalawigan the removal of an area or activity from the list whenever any or all of the following conditions can be established: a. Sufficient investments in the area or activity have been attained; b. Continued extension of incentives or support measures for the specific investment area is no longer the interest of the Province of Iloilo or may place the government and the public at a disadvantage; c. The investment area or activity cannot attract investors within a reasonable time and given the expense involved may result in an unfavorable business climate; and d. Lack of progress in the implementation of an environmental management plan. SECTION 18. Review of Investment Incentives and Support Measures . To promote the growth of investments in the Province, particularly in the preferred investment areas, the Board shall review the package of incentives and support measures at least every two (2) years, and recommend for approval to the Sangguniang Panlalawigan the appropriate specific fiscal and non-fiscal incentives that the government may grant to investors and enterprises. CHAPTER VI Qualifications of Enterprises SECTION 19. Qualifications of New Investors/Enterprises . New investors who intend to avail of the incentives provided in this Code shall have the following qualifications: a. The business enterprise shall have complied with all the requirements mandated under existing local and national laws, rules and policies of the government, i.e. , registration with Securities and Exchange Commission (SEC) in the case of a corporation and association, Department of Trade and Industry (DTI) in the case of a single proprietorship, or Cooperative Development Authority (CDA) in the case of a cooperative; b. The prospective investor's place of production and operation shall be located within the territorial jurisdiction of the Province of Iloilo; c. The prospective investor shall engage in activities in preferred areas of investments such as agri-business, tourism and tourism-oriented enterprises, manufacturing, property development, information and communications technology or business process outsourcing, services and other service-oriented enterprises as may be hereafter declared by the Board; d. The new enterprise shall have a capitalization of less than Three Million Pesos (P3,000,000.00) for a micro-scale enterprise, more than Three Million Pesos (3,000.000.00) up to Fifteen Million Pesos (<P15,000,000,00) for a small-scale enterprise, more than Fifteen Million Pesos (>P15,000,000.00) up to One Hundred Million Pesos (<P100,000,000.00) for a medium-scale enterprise and more than One Hundred Million Pesos (>P100,000,000.00) for a large-scale enterprise, provided that the amount of capitalization shall be based on the total project cost as stated in the investor's project study submitted to and approved by the Board; e. Foreign companies intending to apply for registration shall comply with the Foreign Investment Act of 1991 (RA 7042) and the provisions of this Code; f. The project shall be compliant with environmental laws, rules and regulations. SECTION 20. Qualifications for Existing Enterprise . Any existing enterprise which intends to expand may avail of the incentives under this Code provided that the following qualifications are met: TAIaHE a. The business enterprise shall have complied with all the requirements mandated under the existing laws, rules and regulations; b. The intended expansion or diversification of the existing enterprise shall engage in an economic activity identified as an investment priority area by the Board; c. The existing enterprise whose place of operation or production is already located within the territorial jurisdiction of the Province but which intends to expand its existing production capacity or construct new buildings and other civil works for the installation of new machineries and equipment or improvements thereof which will result in increased production capacity; d. The expansion or diversification shall have an additional project cost of not less than Three Million Pesos (P3,000,000.00), excluding cost of land, as stated in the investor's project study submitted to and approved by the Board; e. The expansion or diversification project will provide additional employment to bona fide residents of the Province; and f. The expansion or diversification shall include an environmental management plan. SECTION 21. Application Requirements . Any new or existing enterprises shall file its application for registration with the Board through the Iloilo Provincial Investments Promotion Unit (IPIPU) within sixty (60) days from the start of operation to qualify for the incentives provided herein. Qualified investors/enterprises shall be considered to have waived their privilege to avail of incentives provided in this Code if no such application is received within the specified period. All applications shall be recorded in a registration book with the date of receipt stamped on its face. 1. For manual filing : a. A letter request to the Department of Trade and Industry in case of single proprietorship or a resolution of the applicant's board of directors, in case of a corporation authorizing the filing of the application and four (4) copies of its Articles of Incorporation and By-Laws, duly approved by the Securities and Exchange Commission, and CDA registration in case of cooperatives; b. Four (4) copies of the completed application form as may be prescribed by the Board in accordance with the provision of this Code; c. Four (4) copies of the completed project study of the proposed investment showing that the project is economically, technically, financially feasible and ecologically balanced; d. A copy of Board of Investments (BOI) Certificate of Registration in case of BOI registered enterprise; e. For existing enterprises, a copy of the latest financial statement of the applicant's firm; f. For tourism-related businesses, proof of compliance of tourism accreditation policies and guidelines as required; g. Other relevant documents such as, but not limited to, project business plan and as may be deemed necessary by the Board. 2. For electronic/internet filing : Online submission of applications and forms through a standard template shall be available on the website of the IPIPU of the Province of Iloilo. Upon submission of its application documents, the applicant shall pay to the Provincial Treasurer an applicable non-refundable fee of: a. P1,000.00 for micro-scale investment b. P2,000.00 for small-scale investment c. P3,000.00 for medium-scale investment d. P5,000.00 for large-scale investment SECTION 22. Approval and Registration Procedures . The Board is authorized to adopt rules and regulations to facilitate action on applications filed with it, prescribe criteria for the evaluation of applications filed in one preferred area and devise standard forms for use of applicants. The Board shall make its decision on the application within thirty (30) calendar days from date of its official receipt, otherwise, the application shall be deemed approved. The IPIPU shall notify the applicant in writing of its approval or refusal or request for additional information. cDHAES SECTION 23. Certification of Registration . A registered enterprise under this Code shall be issued a Certificate of Registration with the signature of its Chairperson. The Certificate of Registration shall be in such form and style as the Board may determine. Registration shall be automatically cancelled for failure of the applicant to commence operation within one (1) year after approval of its application, unless a formal extension is granted by the Board for cause but in no case to be more than two (2) years from the approval of the application. CHAPTER VII Privileges of Registered Enterprises SECTION 24. Privileges Guaranteed by the Provincial Government . In addition to such rights and guarantees granted by law and the Constitution and in order to enhance investor confidence under this incentive program, the Provincial Government, through the Iloilo Provincial Investments Promotion Board, shall: a. Provide a concise and comprehensive information to prospective investors on the economic priorities of the Provincial Government, including target investment areas and the general favorable conditions applicable to them; b. Disseminate investment evaluation criteria and procedures to enhance government transparency in the process of granting incentives; c. Take full account of the investors' need for industrial peace, stability, growth and profitability in their operations in the formulation or modification of policies and ordinances affecting their investments; d. Discourage and prevent undue competition among enterprises operating within its territorial jurisdiction, whether domestic or foreign, when granting any special exemptions or incentives aimed at encouraging investments in the identified target areas; e. Encourage investors to hire employees residing within the Province; and in cases where no local personnel or worker is qualified and capable, allow the employment of qualified non-resident or foreign personnel when necessary, for the efficient operation of the enterprise or for technology transfer; and f. Resolve all doubts concerning the benefits and incentives granted under this Code and ordinances enacted for the purpose of encouraging investments in favor of the investors. CHAPTER VIII Tax Exemption Privileges and Incentives SECTION 25. Tax Incentives for Registered Enterprises . In addition to the incentives provided under Republic Act 7160 (The Local Government Code of 1991),Republic Act 7916 (The Special Economic Zone Act of 1995), as amended, Republic Act 9593 (The Tourism Act of 1999), n Executive Order No. 226 (The Omnibus Investment Code), and other pertinent laws, a registered enterprise shall be entitled to incentives in the manner provided below: a. Within six (6) years from the start of its commercial operation in the case of new enterprises, and within five (5) years in the case of expanding enterprises, qualified enterprises registered under this Code shall be entitled to: ASEcHI New Enterprise Expanding Enterprise % of Reduction % of Reduction 1st Year 100% 100% 2nd Year 100% 80% 3rd Year 80% 60% 4th Year 60% 40% 5th Year 40% 20% 6th Year 20% 0% 7th Year 0% 0% i. Real property tax under the Local Government Code of 1991, as adopted under the Provincial Ordinance 2010-084 or the 2010 Provincial Revenue Code of Iloilo; ii. Transfer of real property ownership under Section 134 of the Local Government Code of 1991, as adopted under the Provincial Ordinance 2010-084 or the 2010 Provincial Revenue Code of Iloilo; iii. Business of printing and publication under Section 136 of the Local Government Code of 1991, as adopted under the Provincial Ordinance 2010-084 or the 2010 Provincial Revenue Code of Iloilo; iv. Franchise tax under Section 137 of the Local Government Code of 1991, as adopted under the Provincial Ordinance 2010-084 or the 2010 Provincial Revenue Code of Iloilo; v. Amusement tax under Section 140 of the Local Government Code of 1991, as adopted under the Provincial Ordinance 2010-084 or the 2010 Provincial Revenue Code of Iloilo. SECTION 26. Non-Fiscal Incentives . Registered enterprises and investors shall be granted the following non-fiscal incentives: a. Access to and assistance by a one-stop documentation center for simplified documentation procedures in securing permits, licenses and other documentary requirements; b. Access to reliable, accurate and timely information; c. Assistance in labor recruitment; d. Referrals to relevant government bodies, support organizations, service providers and important contacts; e. Access to financial and technical assistance programs of the government; f. Access to services of local utilities, e.g. , power, water, telecommunications, etc.; g. Assistance in marketing and promotion of products and services; h. Assistance in networking with the private sectors and other business organizations; and i. Other non-fiscal incentives as may be determined by the Board. CHAPTER IX Funding SECTION 27. Funding . An initial funding of Five Million Pesos (P5,000,000.00) is hereby appropriated for the implementation of the provisions of this Code which shall be sourced from the General Fund of the Province. Thereafter, the Iloilo Provincial Government shall appropriate annually an amount based on the budget presented by the Board for the continued implementation of the provisions of this Code, subject to the usual government accounting and auditing rules. CHAPTER X Final Provisions SECTION 28. Monitoring and Evaluation . The IPIPU shall monitor and evaluate project implementation for the purpose of ensuring that the objectives are accomplished. SECTION 29. Separability Clause. If, for any reason, any provision of this Code should be held unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect. SECTION 30. Effectivity . This Code shall take effect upon compliance of the mandatory posting and publication requirements provided for in Republic Act No. 7160, otherwise known as the Local Government Code of 1991. ITAaHc RESOLVED FURTHER, to furnish copies of this Ordinance, the Governor, Hon. Arthur D. Defensor, Sr.; All Municipal Mayors, Province of Iloilo; Mr. Mario N. Nillos, Provincial Planning and Development Office; Engr. Wilhelm Malones, Iloilo Provincial Director, Department of Trade and Industry-Iloilo; Dir. Edwin Trompeta, Regional Director, Department of Tourism, Region VI, Iloilo; Mr. Juan Jose Jamora III, Chairman, Iloilo Business Club, 2nd Floor Mary Mart Center 3, Valeria-Delgado Streets, Iloilo City; the Provincial Treasurer; Provincial Assessor; Provincial Legal Officer, and the Hon. Charmine P. Devicente and Hon. Jett C. Rojas, Chairman and Vice Chairman, respectively, Committee on Economic Affairs and Investment, all of the Province of Iloilo, for their information and guidance. APPROVED. I HEREBY CERTIFY to the correctness of the above-quoted Ordinance. (SGD.) LORENZO T. TUBOLA Secretary to the SP CONCURRED BY: (SGD.) MACARIO N. NAPULAN Floor Leader ATTESTED BY: (SGD.) OSCAR "Richard" S. GARIN, JR. Presiding Officer APPROVED BY: (SGD.) ARTHUR D. DEFENSOR, SR. Governor n Note from the Publisher: The Tourism Act of 1999 should be "2009".