An Ordinance Enacting the Investment and Tax Incentive Code of San Mateo, Rizal

October 4, 2016 Excerpts from the Minutes of 14th Regular Session of the 24th Sangguniang Bayan of San Mateo, Rizal Held on October 4, 2016 at the Sangguniang Bayan Session Hall. SAN MATEO MUNICIPAL ORDINANCE NO. 039-S-2016 AN ORDINANCE ENACTING THE INVESTMENT AND TAX INCENTIVE CODE OF SAN MATEO, RIZAL Introduced by: Councilor Joel P. Diaz WHEREAS : Section 109 Republic Act 7160, otherwise known as the "Local Government Code of 1991" provides: Functions of the Local Development Councils x x x Municipal development councils shall exercise the following functions: Formulate local investment incentives to promote the inflow and direction of private Investment capital; AHCETa WHEREAS : Section 192 of Local Government Code provides the Authority to Grant Tax Exemption Privileges: Local government units may, through Ordinances duly approved, grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary; WHEREAS : It is imperative for the Municipal Government of San Mateo, Rizal to come up with policies on investment promotion on preferred industries/enterprises together with set of incentives and programs designed to entice new players to invest in and for the existing investors to stay put and increase their stakes in the Municipality's economy; WHEREAS : The presence of an Investment and Incentives Code is one of the requirements/indicators embodied under the Local Governance Performance Management System (LGPMS). The said system aims to determine/assess the capabilities of LGUs in the delivery of public service; cHaCAS NOW THEREFORE ,upon motion of Councilor Joel P. Diaz and duly seconded by Councilor Jaime Romel M. Roxas, BE IT ORDAINED AS IT IS HEREBY ORDAINED by the 24th Sangguniang Bayan in session duly assembled, that: CHAPTER 1 Title, Declaration of Policy, Scope SECTION 1. Title . This Ordinance shall be known as "THE INVESTMENT AND TAX INCENTIVE CODE of San Mateo, Rizal." SECTION 2. Declaration of Policy . It shall be the official policy of the Municipality of San Mateo, Rizal Province, to encourage, welcome and give incentives to capital investments both foreign and domestic, or joint ventures, whether new, expansion or diversification of existing businesses in the municipality. In pursuit of this, the following are the declared policies of the Municipality of San Mateo, Rizal Province: ScHADI a. To encourage investment projects that would utilize substantial amount of local labor, raw materials, and natural resources available. b. To promote the optimum utilization of natural resources available without necessarily resulting to environmental/ecological degradation. c. To develop markets for San Mateo products, to attain a high level of production of crops and other products, attain self-efficiency and productivity. d. To promote priority sectors of investment such as agribusiness, light manufacturing and eco-tourism. e. To promote San Mateo as a sustainable investment destination having adequate power, adequate water resources, free of urban congestion and pollution and easily accessible to Asia Pacific and global markets. f. To provide multiplier effects in terms of job creation, improve the quality of life of the people of San Mateo, and an equitable distribution of wealth. g. To catalyze economic development in this part of the county and assure that the benefits of development accrue to the people of San Mateo. h. To promote the alliance of non-government organizations, to serve as active partners and catalysts in achieving local autonomy. DACcIH SECTION 3. Scope and Coverage . This Ordinance shall apply to all persons, entities or enterprises, belonging to small, medium and large scale categories in preferred areas of investments in agribusiness, light manufacturing, eco-tourism and services and other areas of investments as maybe determined from time to time by the Board. CHAPTER 2 Definition SECTION 4. Definition of Terms . When used in this Code, the following shall mean as follows: a. Board shall refer to the San Mateo INVESTMENTS PROMOTION BOARD (SMIPB). b. Code shall refer to this San Mateo INVESTMENTS AND TAX INCENTIVE CODE enacted by the Sanggunian and approved by the Local Chief Executive. aICcHA c. Municipality shall mean the town of San Mateo, Rizal, covering all the areas within its territorial jurisdiction now existing or hereinafter acquired, as provided for by law and its chapter. d. Center shall mean the San Mateo Investment Promotions Center, which serves as the secretariat to the Board and the implementing arm of this Code. e. Existing Enterprise shall refer to those establishments/enterprises whose places of operation or production within the territorial jurisdiction of San Mateo, Rizal. f. New Investors/enterprises shall refer to those prospective investments that have not engaged in any kind or type of business in San Mateo and are interested in establishing its place of operation or production in San Mateo. g. Local personnel/worker refers to those workers or personnel who are bonafide residents of San Mateo. h. Incentives shall refer to fiscal and non-fiscal incentives as provided for in this Code. i. Registered enterprises refer to those enterprises/businesses whether single proprietorship, partnership, corporation or cooperative, which are registered in accordance with the provisions of the code. CHAPTER 3 San Mateo Investment Promotions Board SECTION 5. The San Mateo Investment Promotions Board . There shall be an Investment Promotions Board (SMIPB) to implement the provisions of this Code. HSCATc SECTION 6. Board Composition . Chairman Municipal Mayor Co-Chairman Municipal Vice Mayor MEMBERS: 1. Representative of 1 San Mateo Business Club 2. SB Chairman Committee on Commerce, Trade and Industry 3. SB Chairman Committee on Ways and Means 4. SB Chairman Committee on Labor and Employment 5. SB Chairman Committee on Tourism 6. Municipal Planning and Development Coordinator 7. Manager (Bank) EHaASD 8. Representative Academe 9. Representative from accredited NGO with concerns on Commerce, Trade and Industry 10. Representative from DTI SECRETARIAT: a. Representatives from the Mayor's Office to be appointed by the Municipal Mayor. b. Representatives from the Office of the Sangguniang Bayan to be appointed by the Municipal Vice Mayor. SECTION 7. Board Meetings . Within sixty (60) days upon approval of this Code, the Municipal Mayor as Chairman of the Board shall convene the Board after appointing its members. The Board shall meet at least once in every quarter or as often as may be necessary, on such a day and time as it may fix during its organization meeting. The presence of majority of its voting members shall constitute a quorum which is required to exercise its powers and perform its functions. IDTSEH SECTION 8. Powers and Functions of the Board . The primary function of the Board shall be to establish a favorable and stable policy on business climate which will encourage and support private sector investment and in the operation of business activities consistent with the development needs of San Mateo. Pursuant to this, the Board shall be vested with the following powers: a. To formulate the governing Implementing Rules and Regulations in accordance with the provisions of this Code subject to the approval of the Sangguniang Bayan. b. To initiate the conduct of technical researches on the identified priority investment areas to be promoted as well as the appropriate incentives and support measures to be extended with the end-in-view to provide a conducive climate for investments. c. To formulate and adopt a long-range investment promotions program and the corresponding incentives and support measures to be used to attract targeted investors. d. To supervise the San Mateo Investment Promotions Center, that may be created thereafter for the implementation of its investment promotions program, and for the implementation of the provisions of this Code. e. When it shall become a private entity, it shall be able to source out and tap additional funding, to supplement the budgetary support provided by the municipality for the operation of the San Mateo Investment Promotions Center, for the implementation of its investment promotions program, and for the implementation of the provisions of this Code. DaIAcC f. To update the incentives granted in this Code. g. To promote San Mateo as an investment destination. h. To approve or reject any application for the grant of incentives as well as suspend or revoke any registration for just cause. i. To enter into agreement with any entity for the purpose of simplifying systems, procedures, and requirements on investments and business operation in the Province of Rizal. SECTION 9. The San Mateo Investment Promotions Center . The Center may be created hereafter and be organized by the Municipal Government of San Mateo through an Executive Order or Ordinance to assist investors in setting up their projects and facilities in San Mateo, Rizal. CHAPTER 4 Investment Priorities Plan SECTION 1. Criteria in Investment Priority Determination . No economic activity shall be included in the Investment Priorities Plan unless it is shown to be environmentally, socio-economically, technically and financially sound after thorough investigation and analysis by the Board. The determination of preferred areas of investment to be listed in the Investment Priorities Plan shall be based on the following: SICDAa a. Long-run comparative advantage b. Economic soundness c. Extent of contribution of the activity to a specific development goal d. Market and technical considerations e. Value of social objectives f. Other indicators of comparative advantage SECTION 2. Preferred Investment Areas . The following are the areas of opportunities particularly in the priority sectors which were formulated after a series of consultative workshops. These priority areas shall be drawn and adopted for implementation by the Board under the Investment Promotions Program of San Mateo upon the concurrence of the Sangguniang Bayan. TAacHE Eco-Tourism Accommodation Facilities Nature Parks/Mountain Resort Transportation Services Restaurants/Food Outlets Other tourism related services Agri-business Post harvest facilities High value crop production Fruit/meat processing Feed Mill Aquaculture Light Manufacturing Precision Assembly Semiconductors Farm Implements Furniture Garments DHIcET Services Media/Advertising Medical services/facilities Data/information technology encoding Financial Services Engineering/architectural services Training and sports facilities CHAPTER 5 Final Provisions SECTION 1. Repealing Clause . All ordinances, rules and regulations or parts thereof that are in conflict with or in contrary to the provisions of this Ordinance are hereby deemed repealed, amended and modified accordingly. HDICSa SECTION 2. Separability Clause . If for any reasons, any provision of this ordinance is declared to be unconstitutional or invalid the other provisions hereof not so affected shall continue in full force and effect. SECTION 3. Effectivity Clause . This Ordinance shall take effect immediately upon its approval, and after due compliance with publication requirements. ENACTED: October 4, 2016 I, HEREBY, CERTIFY to the correctness of the foregoing ORDINANCE duly approved by the 24th Sangguniang Bayan during its 14th regular session held at the Sangguniang Bayan Session Hall, San Mateo, Rizal. HcDSaT CHERRIBEL M. NAKATA OIC-SB Secretary Attested and certified duly adopted: (SGD.) JOSE RAFAEL E. DIAZ Municipal Vice Mayor and Presiding Officer SANGGUNIANG BAYAN MEMBERS (SGD.) ROBERTO C. SAN PEDRO (SGD.) JAIME ROMEL M. ROXAS (SGD.) MARY GRACE C. DIAZ (SGD.) CRISTEO B. CRUZ (SGD.) JOEL P. DIAS (SGD.) ENGR. ROGELIO J. SAN MIGUEL (SGD.) LEO S. BUENVIAJE (SGD.) ARWIN A. MARIANO (SGD.) LIGA PRES. EDILBERTO C. ANGEL Approved: (SGD.) CRISTINA C. DIAZ Municipal Mayor