The Pangasinan Investments and Incentives Code

September 5, 2016 CERTIFICATION TO WHOM IT MAY CONCERN: THIS IS TO CERTIFY that at the regular session duly constituted of the Sangguniang Panlalawigan, Province of Pangasinan, held on September 5, 2016 at Lingayen, Pangasinan, the following provincial ordinance was approved: Authored by all Members of the Sangguniang Panlalawigan PANGASINAN PROVINCIAL ORDINANCE NO. 201-2016 THE PANGASINAN INVESTMENTS AND INCENTIVES CODE (AMENDING THE PANGASINAN INVESTMENTS CODE OF 2003) WHEREAS , the Pangasinan Investment Code was approved in February 13, 2004 through Provincial Ordinance No. 109-2004 ; WHEREAS , with passage of new appropriate national and local investment laws, rules and regulations, and policies, there is a need to update or revise the Pangasinan Investment Code of 2003 ; WHEREAS , the Ad Hoc Technical Working Committee was created to update the Pangasinan Investment Code of 2003 , as a proactive measure to enhance the competitiveness of the local investment climate and draw in more local foreign investments; WHEREAS , after a thorough and meticulous review, discussion and deliberation by this body, it has been found that the same is in conformity with the provision of existing laws, and will indeed contribute to the development thrusts of the Provincial Government of Pangasinan; WHEREFORE , on motion of all Members of the Sangguniang Panlalawigan, duly seconded, it was Be it enacted by the Sangguniang Panlalawigan in session duly assembled: CHAPTER I Title and Policy Statement SECTION 1. Title. This ordinance shall be known and cited as the PANGASINAN INVESTMENTS AND INCENTIVES CODE OF 2016. SECTION 2. Policy Statement. In furtherance of the provincial and national growth and development, Pangasinan encourages new investments, expansion and/or diversification of environment-friendly projects in agriculture, tourism, infrastructure, energy, health, manufacturing, mining and other industries. CHAPTER II Definition of Terms New Enterprise Refers to new investment which is not yet in commercial operation and is consistent with the Investment Priority Areas (IPA) as defined by the Pangasinan Investments and Incentives Board (PIIB). A company diversifying into other activities shall also be treated as new enterprise. Existing Enterprise Refers to any operational business enterprise. Expanding Enterprise Is an existing firm with plans for new investments and growth for its business ventures that are in the Investment Priority Areas (IPA). Registered Enterprise Shall mean a sole proprietorship, partnership, cooperative, corporation and other enterprise incorporated under Philippine laws and registered under the Pangasinan Investments and Incentives Code. Pangasinan Investments and Incentives Board (PIIB) Shall refer to the body primarily tasked to formulate policies and directions in the promotion of investments in Pangasinan. Assets Shall refer to all kinds of properties, real or personal, including those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated. Investments Promotion Center (IPC) Shall refer to a unit or office tasked to assist the Board in the implementation of all activities concerning investment and investment policies. Investments Code Refers to Pangasinan Investments and Incentives Code of 2016. Investment Priority Areas (IPAs) Shall refer to areas where investors can pour investment as identified by the PIIB. Government Refers to Local Government Unit of the Province of Pangasinan. CHAPTER III Pangasinan Investments and Incentives Board (PIIB) SECTION 3. Creation. The Pangasinan Investments and Incentives Board (PIIB) is hereby created in order to implement the provisions of this Code. SECTION 4. Composition. The PIIB shall be composed of the following: Chairman: Governor Vice-Chairman: Chairman, Pangasinan SMED Council Members : 1. Chairman, SP Committee on Cooperatives, Small Business and Entrepreneurship Development 2. Chairman, SP Committee on Appropriations, Economic Affairs and Ways and Means 3. Head, Investment Promotion Center 4. Provincial Planning and Development Coordinator 5. Provincial Agriculturist 6. Provincial Tourism Officer 7. Chairmen, PCCI for Eastern, Central & Western Pangasinan 8. Provincial Legal Officer SECTION 5. Functions. The PIIB shall formulate policies and directions, promulgate rules and regulations, and prepare a framework plan for the promotion of the identified priority investment areas, and such other activities necessary to implement the intent and provisions of this Code. SECTION 6. Meetings. The PIIB shall meet regularly on a quarterly basis to plan, execute/assess/evaluate its plans, programs, projects and activities. However, the Chairman may call a meeting of the PIIB anytime, or as often as he deems it necessary, and invite resource speakers, when necessary, from the National Government Agencies during Board meetings. CHAPTER IV Investment Promotion Center (IPC) SECTION 7. Creation. The Investment Promotion Center (IPC) shall be created to serve as the implementing arm of the PIIB, with the assistance of concerned provincial offices and national line agencies. Members may be appointed and/or designated. SECTION 8. Functions. The IPC shall act as the Technical Working Group and the Secretariat of the Board, and shall take an active role in implementing the policies and directions of the PIIB, including the implementation of this Code. CHAPTER V Investment Priorities SECTION 9. Investment Priority Areas (IPAs). In consultation with other Government Agencies and Private Sector, the PIIB shall identify investment priority areas consistent with the provincial development thrusts, and in parallel with the national priorities, taking into consideration the province's resources and potentials. SECTION 10. Review of Investment Priority Areas. The PIIB shall review every three years and update the list of investment priority areas when deemed necessary, subject to the approval of the Sangguniang Panlalawigan. CHAPTER VI Qualifications of a Business Enterprise to Avail of Incentives SECTION 11. Qualifications. All new and expanding enterprise shall meet the following qualifications to avail itself of local incentives: a. Financially capable to undertake the establishment, expansion and/or diversification project b. With a minimum project cost of Php3 million for new enterprise, and with an asset size of more than Php3 million for expanding enterprise c. Must employ at least 50% of their labor from qualified residents of the province d. The project shall be in consonance with the approved Provincial Development and Physical Framework Plan (PDPFP) e. Prospective investment or investment expansion must be included in the IPA list or as may hereafter declared by the Board f. Registered with the PIIB SECTION 12. Registration Requirements. Application for registration shall be secured from the IPC upon payment of non-refundable filing fee of One Thousand Pesos (Php1,000.00) at the provincial Treasury Office. Application for registration shall be filed with the PIIB together with the following: a. Three (3) copies of accomplished application form b. Three (3) copies of project study of proposed investment c. Copy of Certificate of Registration from the Securities and Exchange Commission (for partnership or corporation) Department of Trade and Industry (for single proprietorship) Cooperative Development Authority (for cooperatives) d. Certified true copy of Articles of Incorporation and By-Laws (for Cooperatives and Corporations) e. Copy of the latest audited financial statement (for enterprise existing for more than one year) Copy of the Board of Director's Resolution (for corporation and cooperatives) authorizing the filing of application and its authorized representative. SECTION 13. Registration Procedures. The PIIB shall formulate rules and regulations based on prescribed criteria for evaluation. A standard form shall be devised for use of applicant to facilitate processing of application filed. SECTION 14. Processing Time. Upon admission of complete requirements, the PIIB shall have twenty-two (22) working days to act on the application filed. Application for registration shall be deemed approved if not acted upon within the prescribed period. The PIIB shall notify the applicant of its decision through registered mail. SECTION 15. Certificate of Registration. A certificate of registration shall be issued by the PIIB to qualified enterprise, which shall serve as legal document for the enterprise to avail of the incentives stipulated in Section l6 of this Ordinance. CHAPTER VII Incentives to Registered Enterprises SECTION 16. Fiscal and Non Fiscal Incentives . Subject to the provisions of existing national laws granting fiscal incentives, including, but not limited to, Executive Order 226 ( Omnibus Investment Code of 1987 ), as amended by Republic Act No. 7918; Republic Act No. 7042 ( The Foreign Investment Act of 1991 ), as amended by Republic Act No. 8179; Executive Order No. 63 ( Granting Incentives to Foreign Investments in Tourist-Related Projects and Tourist Establishments and for Other Purposes ); Republic Act No. 7279 ( Urban Development and Housing Act of 1992 ); Republic Act No. 7844 ( Export Development Act of 1994 ); Republic Act No. 7916 ( The Special Economic Zone Act of 1995 ), as amended by Republic Act No. 8748; Republic Act No. 9593 ( The Tourism Act of 2009 ); and Republic Act No. 7160 ( The Local Government Code of 1991 ), an enterprise registered under this Pangasinan Investment and Incentives Code shall also enjoy local tax incentives. A. FISCAL INCENTIVES Qualified enterprises under this Code shall enjoy the following fiscal incentives for a period of one year, subject to renewal as the province may deem necessary, but not to exceed five years: 1. Full exemption from payment of Governor's permit on business activities included in Chapter III, Article A, Section 42 of the 2012 Revenue Code of the Province of Pangasinan . 2. Full exemption from the share of the province from the payment of Basic Real Property Tax acquired or built purposely for the project. B. NON FISCAL INCENTIVES 1. Special access to IPC services such as investment counselling, business visit facilitation, provision of data and information related to investments, business partner identification and matching, incentives availment, access to financial source & social services, trouble shooting and follow-up. 2. Other incentives as approved by the Sangguniang Panlalawigan upon recommendation of the PIIB , especially for firms that employ more worker while increasing international competitiveness. CHAPTER VIII Final Provisions SECTION 17. Appropriations. An initial fund for the operation of the Investment Promotion Center shall be appropriated by the province. In the subsequent years, the Provincial Government shall appropriate annually based on the budget presented by the IPC, subject to the approval of the Local Chief Executive, confirmation of the Sangguniang Panlalawigan and the usual government accounting and auditing rules and regulations. SECTION 18. Reportorial Requirements. Registered enterprises are required to submit to the IPC a quarterly report on the status of implementation of the registered project. The IPC shall prepare the required forms to be filled up by the registered enterprises to facilitate preparation of the quarterly report. SECTION 19. Separability Clause. The provisions of the Code are hereby declared to be separable, and in the event that one or more of the provisions are illegal and unconstitutional, the validity of the other provisions shall not be affected. SECTION 20. Repealing Clause. All ordinances, executive orders and rules and regulations inconsistent and in conflict with the provisions of this Code are hereby repealed, amended or modified accordingly. SECTION 21. Implementing Guidelines . The PIIB shall prepare the implementing rules and regulations of this Code within thirty (30) days from effectivity, for ratification/approval of this body. SECTION 22. Effectivity. This ordinance shall take effect 15 days upon its publication in a local newspaper of general circulation in the Province of Pangasinan. (SGD.) VERNA T. NAVA-PEREZ Secretary to the Sanggunian ATTESTED: (SGD.) VICE GOVERNOR JOSE FERDINAND Z. CALIMLIM, JR. Presiding Officer APPROVED: (SGD.) AMADA I. ESPINO, III Governor