Granting Tax Credit or Discount to Persons for Charitable Contribution Made for the City's Community Development Projects

November 26, 2008 MAKATI CITY ORDINANCE NO. 049-08 PRESENT: Councilor Ernesto A. Aspillaga Councilor Jejomar Erwin S. Binay, Jr. Presiding Officer Councilor Israel S. Cruzado Councilor Maria Theresa N. De Lara Councilor Virgilio V. Hilario Councilor Henry A. Jacome Councilor Luis S. Javier, Jr. Councilor Monique Q. Lagdameo Councilor Arnold C. Magpantay Councilor Armando P. Padilla Councilor Salvador D. Pangilinan Councilor Vincent T. Sese Councilor Elias V. Tolentino, Jr. ABC President Romulo V. Pea, Jr. Sectoral Representative ABSENT: Vice Mayor Ernesto S. Mercado On Leave Councilor Angelito D. Gatchalian Sick Leave Councilor Erlinda S. Gonzales Sick Leave Councilor Tosca Camille T. Puno Sick Leave SK President Denisse Angelica A. Hechanova Sectoral Representative By unanimous vote of the Sangguniang Panlungsod members present, the following City Ordinance was enacted on third and final reading: Authors: Councilors M.Q. Lagdameo, H.A. Jacome, J.E.S. Binay, Jr., M.T.N. De Lara and A.C. Magpantay AN ORDINANCE GRANTING INCENTIVE BY WAY OF TAX CREDIT OR DISCOUNT TO ANY PERSON, NATURAL OR JURIDICAL, FOR CHARITABLE CONTRIBUTION MADE FOR THE CITY'S COMMUNITY DEVELOPMENT PROJECTS, SUBJECT TO ALL LAWS AND EXISTING LEGAL RULES AND REGULATIONS WHEREAS, consistent with Section 9, Article III of the Constitution which mandates the provision of decent housing and basic services to the underprivileged and homeless, the City Government of Makati has embarked on socialized housing program; WHEREAS, pursuant to Section 192 of the Local Government Code of 1991 which empower every local government unit to grant incentives and in addition to those already provided by Makati City Investment and Incentive Code, an individual and registered establishments qualified under this Ordinance can avail incentives and privileges provided herein; WHEREAS, Section 20 of the Republic Act 7279 or the Urban Development and Housing Act of 1992 enumerates the various incentives which could be extended to the private sector participating in socialized housing; WHEREAS, the City Government of Makati recognizes that shelter is a basic need for which low and middle income families, particularly in urbanized areas, require assistance; WHEREAS, the Makati 21 which is the development agenda of Makati City for the 21st century aims to provide a balanced growth that ensures the economic, social and physical well-being of the communities and all the individuals within them through provision of jobs, shelter and pride of place for its people through good urban governance; WHEREAS, the City of Makati, in partnership with reputable private foundation/s, undertakes the role of building sustainable and dignified communities in depressed areas thru community development projects to cater to low and medium income families of Makati City; DIECTc WHEREAS, the City intends to involve individual, business communities, private and corporate cooperation towards effective local development and serve as active partners in promoting social equality and building sustainable and dignified communities for the residents of Makati; NOW THEREFORE, BE IT ENACTED, AS IT IS HEREBY ENACTED, BY THE SANGGUNIANG PANLUNGSOD OF MAKATI, METRO MANILA, BY VIRTUE OF THE POWERS VESTED IN IT BY LAW, IN SESSION ASSEMBLED, that: SECTION 1. Title. This Ordinance shall be known as the Makati City Incentive Ordinance granting incentive, by way of tax credit or discount, to any person, natural or juridical, for charitable contribution made for the City's community development projects. SECTION 2. Incentive. In view of the contribution made under this Ordinance, the City Government of Makati shall grant tax credit or discount to Donors equivalent to 10% of their contributions, under the following conditions: 1. In making the contribution, the Donor must signify its intention to avail of the incentive provided under this Ordinance; 2. The Donor shall be issued by the City Government with Certificate of Tax Credit or Discount only upon acknowledgment of remittance of contribution to designated account; 3. The tax credit or discount shall be applied to local taxes within one (1) year from date of issuance thereof; 4. The tax credit or discount shall be non-transferable; However, Donors who have no property or business in Makati may assign the incentive to any person who shall be appointed by the Donor upon making the donation. Thus, in lieu of the Donor, Assignee's name shall appear in the tax credit or discount certificate. Let copy of this Ordinance be furnished the Office of the City Administrator, City Treasurer and other concerned offices for their information, guidance and reference. This Ordinance shall take effect immediately upon its approval. APPROVED BY THE SANGGUNIANG PANLUNGSOD OF MAKATI, METRO MANILA, in its regular session held on November 26, 2008. Certified true and correct by: (SGD.) ATTY. RODEL R. NAYVE Sangguniang Secretary Noted by: (SGD.) ATTY. ROGELIO U. MARASIGAN Consultant Attested by: (SGD.) JEJOMAR ERWIN S. BINAY, JR. Presiding Officer APPROVED BY: (SGD.) JEJOMAR C. BINAY City Mayor