Investment Incentives Code of San Jose Municipality

2012 SAN JOSE MUNICIPAL ORDINANCE NO. 151-12 INVESTMENT INCENTIVES CODE OF THE MUNICIPALITY OF SAN JOSE, PROVINCE OF DINAGAT ISLANDS CHAPTER I Title and Declaration of Policy SECTION 1. This ordinance shall be known as "INVESTMENT INCENTIVES CODE OF SAN JOSE MUNICIPALITY". SECTION 2. It is hereby declared policy of the Municipality of San Jose to encourage, investors both local and foreign to help the municipality market its cottage industry products such as agsam, romblon and shell handicraft; establish eco-tourism industry such as hotel and restaurant, beaches and mountain resorts; establish processing plants for agriculture and aqua marine products; establish transportation facilities such as shipping lines, bus and jeepney lines and establish banking and micro financing institutions. CHAPTER II Definition of Terms SECTION 3. As used in this ordinance, the following definition of terms shall be applied: 1. Code refers to the Investment Incentives Code of San Jose Municipality. 2. Investments legal businesses based within the Municipality of San Jose which could generate employment and contribute to the generation of the municipal government revenues. 3. Juridical Person refers to any person or entity, who by operation of law has acquired status and rights to operate a legitimate business that can sue and be sued. 4. Registered Enterprises are establishments which are duly registered with the appropriate government agencies and have acquire rights and privileges to operate business within the jurisdiction of the Municipality of San Jose. cSaATC 5. Incentives refer to fiscal and non-fiscal incentives offered by the Municipal Government of San Jose to investors who wish to invest in San Jose on the above-stated nature of investments. 6. Municipal Investment Committee a committee created under this code responsible to formulate policies and approved application for registration. 7. Investment Promotion Center a center created under this code responsible to recommend investment policies and evaluate and recommend action on application for registration and incentives. CHAPTER III Municipal Investment Committee SECTION 3. n There shall be created a Municipal Investment Committee to oversee and direct the implementation of this code with the following composition, powers and functions: 3.a Composition The Municipal Investment Committee shall be composed of the following: Chairman : Municipal Mayor V-Chairman : MEDO Members : President, Business Sector Representative from NGO/PO Municipal Assessor The Municipal Treasurer The Zoning Administrator SB Chair, Committee on Ways and Means SB Chair, Trade and Industry 3.b. Powers and Functions: The Municipal Investment Committee shall have the following powers and functions: Formulate policies; Promote investment in the area; Approve application for registration; CHAPTER IV Investment Promotion Center SECTION 4. There shall be created a Municipal Investment Promotion Center with the following powers and functions: a. Recommend Investment policies; b. Make industry studies; c. Evaluate and recommend action of application for registration and incentives. CHAPTER V Investment Priority Area SECTION 5. Coverage. Business enterprises or investments in the following areas or activities shall qualify to avail of the incentives and other privileges granted in this code, viz. : A. Handicrafts trading; B. Commercial Processing of agriculture, fishery and other aqua marine products; C. Eco Tourism facilities such as hotels and restaurants beaches, mountain resorts; D. Transportation facilities such as shipping lines, bus and jeepney lines; E. Banking and micro financing institutions. CHAPTER VI Rights and Obligations of the Registered Enterprise SECTION 6. Rights and Obligations Guaranteed by the Municipal Government. All qualified investors and registered enterprises are entitled to the rights and guarantees provided for by the municipal government thru this code, and to enhance investor confidence in the incentive program, the municipal government, through the Municipal Investment Incentive Board shall: (a) Provide prospective investors with a concise and comprehensive information on the economic priorities of the Municipal Government, including target investment areas and the general conditions applicable to incoming direct private investments; EATCcI (b) Communicate investment evaluation criteria and procedures to enhance transparency in the process of granting government incentives; (c) Not interfere or modify arrangements with the investors after the details of implementation of an investment project have been accepted and approved, and the ownership and management structure of the enterprise have been established, unless the law provides otherwise; (d) Avoid undue distortion of competition between and among enterprises operating within territorial jurisdiction, whether domestic or foreign, when granting any special exemptions or incentives aimed at encouraging in the identified target areas; (e) Endeavor to maintain industrial peace through negotiations and agreement; and (f) Resolve all doubts concerning the benefits and incentives granted under the ordinances enacted for the purpose of encouraging investment. SECTION 7. Exclusivity. The privileges and incentives granted to the qualified investors are non-transferable, except in the event of death, permanent incapacity of participating members where the incentives and privileges shall be transferred to the heirs of decedent in accordance with law on succession. CHAPTER VI Incentives SECTION 8. All qualified applicants shall avail of the following incentives: a. Non-Fiscal: For qualified investors who will help the municipal government market its cottage industry products will be provided an office space in the Municipal E-center for free for one (1) year. BPLS facilitation Assistance in Labor provision (recommendation notarial, accountant, skilled and unskilled workers) Real Estate Status, rates, zoning b. Fiscal: Exemption from the payment of business tax only for one (1) year reckoned from the approval of the application. CHAPTER VII Filling of Applicant SECTION 9. The following documents shall be required to the applicants: Two Copies of the Following: a. Completed application form; b. Complete project study of the proposed investment showing that the project is economically, technically and financially feasible and viable; c. Certified true copy of its SEC Certificate of Registration, Articles of Incorporation and By-laws as approved by appropriate government accreditation agencies; DHITCc d. Certified true copy of its BOI Certificate of Registration as approved by Board of Investments for enterprises that have availed of the national investment incentives program; e. Original copy of the Resolution of the applicant's Board of Directors, in case of a corporation authorizing the filing of application; f. Certified true copy of its Audited Financial Statement. CHAPTER VIII Registration of Enterprises SECTION 10. Upon the approval of the application, the applicant shall be required to pay a one-time registration fee to the Municipal Treasurer or his duly authorized representative per project in the amount of 1.5% of its investment capital for BOI registered and P10,000.00 for non-BOI registered. CHAPTER IX Cancellation of Registration SECTION 11. Cancellation of Certificate of Registration is hereby imposed for any registered applicants who violated the following: A. Non-compliance with the requirement for entitlement; B. Misrepresentation and violation of the terms and conditions of the Certificate of Registration; C. Violation of any provision of this code shall be sufficient cause for the forfeiture of the incentives and privileges granted and shall be required to pay all taxes and fees from the start of its operation, upon recommendation of the Municipal Investment Board. CHAPTER X Appropriation SECTION 12. An appropriation amounting to Fifty Thousand (P50,000.00) shall be provided by the Local Government Unit either in the regular or supplemental budget to support the implementation of this code. CHAPTER XI Final Provisions SECTION 13. The Municipal Investment Committee shall conduct an annual inspection on the firms. Said inspection shall be limited to the total gross sales/receipts and compliance of the provision of this code. SECTION 14. At the end of each calendar year, but not later than April 30, all registered enterprises to this code shall submit copies of the duly audited financial statements to the committee, and the Office of the Municipal Mayor for evaluation and record purposes. SECTION 15. Separability Clause. If for any reason any portion or provision of this Code is declared unconstitutional or invalid, the other sections or provisions hereof which are not affected thereby shall continue to be in full force and effect. cEaSHC SECTION 16. Suppletory Clause . On matters not provided for this Code, any existing applicable laws and their corresponding implementing rules and regulations, executive fiats and relevant issuances issued therefore shall apply in supplemental manner. SECTION 17. Effectivity. This code shall take effect upon its approval. (SGD.) MARIO D. BAGUNAS Municipal Vice-Mayor, Presiding Officer ATTESTED: (SGD.) JULIETA SALARZON-MONTESEVEN Secretary to the Sanggunian APPROVED: (SGD.) ALLAN II B. ECLEO Municipal Mayor n Note from the Publisher: Copied verbatim from the official copy. Duplication of Section 3.