ORDINANCE NO. 113
Series of 2001
x - - - - - - - - - - - - - - - - - x
INVESTMENT INCENTIVE CODE
OF LA CARLOTA CITY
SECTION I. TITLE . This Ordinance shall be known and cited as the La Carlota City Investment Incentive Code.
SECTION II. POLICY STATEMENT . In furtherance of her growth and development, La Carlota City encourages the pouring in of new investments, expansion and/or diversification in industries that will enhance the productivity and value of the city's natural resources consistent with the principles of sustainable development and are not disruptive to the ecological balance in the Agro-Industrial Development of the city and its immediate environment.
SECTION III. DEFINITION OF TERMS .
NEW ENTERPRISE - shall refer to new investments which are within the Investment Priority Area (IPA) as defined by the Board and/or existing enterprise with plan for diversification/expansion to other business ventures which are in the IPA.
CAPITAL INVESTMENT - shall mean the value in money of capital introduced or used in pursuing an economic activity thereby generating employment opportunity to the unemployed labor force.
CAPITAL - all means of production that are created by people, including tools, industrial equipment, and structure.
INVESTMENT - the act of increasing the economy's stock of capital, that is, its supply of means of production.
REGISTERED ENTERPRISE - shall mean individual or single proprietorship, partnership, cooperative, corporation or any other entity incorporated under Philippines Laws and registered under the La Carlota City Investment Program.
PIONEERING ENTERPRISE (S) - those business activity which is the first of its kind in the city.
BOARD - shall refer to the La Carlota City Investment Board (LIB).
PERSONAL - shall refer to both natural and juridical persons.
BONAFIDE RESIDENT - shall refer to a person who is a resident for no less than six (6) months in the City of La Carlota .
JURIDICAL PERSON - shall refer to partnerships, corporation, cooperatives, and similar entities created by operation of law.
INVESTMENT CODE - shall refer to the La Carlota City Investment Incentive Code.
LABOR - the contribution to production made by people working with their minds and muscles.
LABOR FORCE - the sum of all individuals who are employed and all individuals who are unemployed.
LABOR INTENSIVE ENTERPRISE - shall be one that maximizes the number of labor force employed.
INVESTMENT PRIORITY AREAS (IPA) - shall refer to Investment Areas identified where investors can pour investments.
LABOR GENERATING ENTERPRISE - shall refer to an economic activity that tends to increase the number of employed labor force in the same activity or has the effect of increasing the number of labor force in other business sectors, directly or indirectly.
CITY GOVERNMENT - shall refer to the government of La Carlota City.
TAS - shall refer to the Technical Advisory Staff.
IPC - shall refer to the Investment Promotions Center
SECTION IV. APPLICANTS QUALIFICATION . Subject to the provision of Section 6 hereof, any person natural or juridical, may apply for incentives or privileges under this ordinance, provided that they meet the following qualifications:
• Must be qualified to do business under existing national laws;
• Must be registered with appropriate government agencies, such as Department of Trade and Industry, the Security and Exchange Commission, the Cooperative Authority and other appropriate government agencies;
• Must have minimum capital investment of no less than TWO MILLION PESOS (P2,000,000.00) or not less than FIFTY THOUSAND DOLLARS ($50,000.00).
• Must execute a notarized undertaking that the business enterprise other than banks or banking institutions shall maintain a monthly minimum bank deposit, preferably with banks doing business in La Carlota City, equivalent to the total monthly salaries and wages of all its employees; A Certificate of Deposit from the particular bank evidencing of compliance herewith shall be submitted along with the application for registration and to submit from time to time the bank certificate as may be required by the city to ensure compliance hereof.
• Must execute a power of attorney in favor of the city to confirm from particular banks the existence of deposits specified in the preceding paragraph (d) of this section.
• Business enterprises to be established must be at least employment generating, but preference shall be given to labor intensive enterprises.
SECTION V. PREFERENCE. Applicants having the following type or nature of business shall be preferred under this Investment Incentive Program:
• Manufacturing and Processing Plants;
• Tourism Oriented enterprises;
• Pioneering enterprises
• Water and Power resources development enterprises;
• Educational institutions
SECTION VI. REGISTRATION REQUIREMENTS . Application for registration shall be secured and filed with the Local Investment Board (LIB). A non-refundable filing fee of ONE THOUSAND PESOS (P1,000.00) shall be paid at the time of the submission of the following documents:
• Five (5) copies complete application form to be provided by the Board in accordance with this Ordinance.
• Three (3) copies of either the Comprehensive Feasibility or Project Study of the proposed investments or brief description of the project and the name of persons responsible for the project, with their bio-data. The LIB has the option to require submission of all the documents specified in this section 6 (b).
• A copy of Articles of Incorporation and By-Laws as approved by the Securities and Exchange Commission and/or Board of Investment, as the case maybe.
• A certified true copy of its Certificate of Registration with the Securities and Exchange Commission, Board of Investments the Department of Trade and Industry whichever is applicable.
• A copy of audited financial statement of the applicant's enterprises (for existing enterprises).
• Resolution of the applicant's Board of Directors, in case of a corporation, authorizing the filing of the application.
• Deed of undertaking, Special Power of Attorney and Certificate of Deposit specified in section 4 (d).
SECTION VII. CERTIFICATE OF REGISTRATION . A registered enterprise shall be issued a Certificate of Registration in such form and style as the Board may determine.
SECTION VIII. Any person, partnership, corporation, association and cooperative whose application has been accepted and granted Certificate of Registration under the pertinent provisions of this Ordinance must employ at least Eighty Percent (80%) Filipino labor force who are residents of the City of La Carlota whenever available and qualified.
SECTION IX. For the purpose of giving effect to this Ordinance, a LOCAL INVESTMENT BOARD (LIB) is hereby created with the following composition, powers and functions;
• The Local Investment Board (LIB) shall be composed of the following:
Chairman - City Mayor
Members - One (1) Representative from the duly accredited Business
Sector of La Carlota City .
- Chairman, Committee on Commerce and Industry
Sangguniang Panlungsod.
- Chairman, Committee on Finance and Appropriation,
Sangguniang Panlungsod.
- Chairman, Committee on Laws and Ordinances
- Representative, AALCPI
- Representative Labor Sector
• Representative from the accredited Women's Organizations
• Powers and Functions of the Local Incentive Board (LIB):
• To promulgate such rules and regulations as maybe necessary to implement the intent and provisions of this Ordinance taking into consideration the holistic development by safeguarding sustainable well-being of the social, cultural and ecological life of the community subject to the conformity of the Sanggunian Panlungsod.
• To conduct in-depth economic and technical studies and researches in order to identify priority Investment Areas, appropriate incentives and government support measures to be extended, in order to attract investors.
• To come up with short term and medium term investment promotions program specifying Investment Priority Areas.
• To establish an Investment Promotions Center , and to supervise the operation and implementation of the same.
• To provide and source budgetary support as required to fully and successfully implement this Ordinance.
• To enter into an agreement with other government agencies and/or private organizations in facilitating and implementing systems, procedures, requirements and investments and other support services for the La Carlota Investment Promotions Program, subject to the confirmation of the Sangguniang Panlungsod.
• To screen, evaluate, accept, approve, or reject applicants desiring to avail of the incentives and privileges under this code within Thirty (30) days from receipt and to issue Certificate of Registration/Exemptions in case of approval, or a notice of rejection in case of denial of the application. In case of either denial or approval of the application the signature of a least four (4) member of the board and the chairman shall appear in the resolution.
• To undertake Trade Missions, both local and foreign, for the purpose of inviting investors as well as providing necessary information and dissemination drive to parties willing to avail of the Investment Incentives Program under this Ordinance.
Provided, however, that in the case of foreign trade missions, the approval of the Sangguniang Panlungsod must be secured;
• Trade Mission involving local and foreign International Trade Organizations as well as Trade Missions involving Board of Investors Offices, foreign embassies and consulates in the Philippines and abroad shall be headed by the City Mayor or in his absence, by any of his duly authorized member of the Local Investment Board (LIB).
Provided, that, in case of International Trade Organizations, there is a need for an endorsement or referral by the Bureau of International Trade Promotions, DTI;
• The Local Investment Board in coordination with the appropriate agencies or instrumentalities of the local and national government is hereby empowered to identify, acquire and develop Industrial Estates and Business Parks and other investment areas in the City of La Carlota in accordance with the approved investment priorities of the city.
SECTION X. MEETINGS AND QUORUMS . The board shall regularly meet at least once a month, and shall fix the schedule of meetings, regular or special provided that a request from at least five (5) members of the Board mandates the Chairman to call a meeting of the Board. The presence of four (4) members of the Board shall constitute a quorum for purposes of conducting business call by the chairman.
SECTION XI. TECHNICAL ADVISORY STAFF . There shall be created an Incentives and Promotions Center manned by qualified personnel who shall serve as Technical Advisory Staff to assist the Board in all activities concerning investments and investment policies in coordination with DTI.
SECTION XII. DUTIES AND RESPONSIBILITIES OF THE TECHNICAL ADVISORY STAFF.
• Assist the Board in the performance of its powers and functions.
• To serve as secretariat to the Board.
• To conduct studies, gather and analyze facts and figures and inform the Board on National/Regional issues affecting the dynamics of investments to perform other functions as directed by the Board.
SECTION XIII. INCENTIVES TO REGISTERED ENTERPRISES . All qualified and accepted applicants to this Investment Incentive Program shall enjoy the following tax exemption and privileges.
• For New Enterprises
• Full exemption from the payment of building permits fees and other fees and charges.
• Exemption from the payment of all kinds of business taxes imposed by the City of La Carlota for a period of three (3) years, from the start of commercial operation.
• Exemption from the payment of basic tax is on real property improvements, buildings and machinery under the Tax Code of La Carlota City subject to the classification to wit:
Period of Amount of Capital Investment Exemption in million of Pesos in thousand Of Dollars ------------- ----------------------- -------------------
Small enterprises 3 years from 2M to less from 50T to
Than 5M less than 100T
Medium enterprises 4 years from 5M to less from 100T to
Than 10 M less than 200T
Large enterprises 5 years from 10M and from 200T and
Above above
• Exemption from all inspection and examination fees.
• For existing Enterprises
Subject to the approval of the Board, existing enterprises shall enjoy the tax reduction or tax credits or full tax exemptions (specified in Sec. 13(A) sub section 1, 2, 3, 4) for additional expenditures on the following:
• Aesthetic improvements on buildings and other structures for business use located in existing commercial centers.
• Improvements on the façade of existing commercial buildings, and improvements on other interior structures for business use wherein said improvements will contribute positively to the business image of the city, provided, however that the total value of the existing improvement and the additional expenditures falls within the classification specified under Sec. 13 (A) 3.
SECTION XIV. NON-TRANSFERABILITY OF PRIVILEGE . Provided, however that the total value of the existing improvements and the additional expenditures falls within the classification specified under Sec. 13 (A). The incentives and privileges granted to the registered members of this Local Investment Incentives Ordinance are non-transferable, except in the event of death, permanent incapacity of a participating member who is a natural person, where the incentives and privileges shall be transferred to the heirs of decedent in accordance with law on succession, or in case the remaining partner or partners in a partnership continues the business.
SECTION XV. ANNUAL INSPECTION . The Local Investment Board (LIB) and/or the Technical Advisory Staff shall conduct an annual inspection on the progress of the participating firms, said inspection shall be limited to the total gross sales/receipts; observance of the Minimum Wage Law and compliance of the provisions of this Ordinance.
SECTION XVI. REPORTING . At the end of each calendar year but not later than April 30, all registered members of this program shall submit copies of duly audited financial statements to the Local Investment Board, the Sangguniang Panlungsod, and the office of the Mayor for evaluation and record purposes.
SECTION XVII. VIOLATIONS . Any participating member who is found to have violated any provision of this Ordinance shall forfeit the incentives and privileges granted, and shall be required to pay all taxes and fees due from the start of its business operation, upon the recommendation of the Local Investment Board.
SECTION XVIII. APPROPRIATIONS . An initial funding for the operation and establishment of the La Carlota City Investment Incentive Promotion Center, shall be appropriated from the savings and unappropriated funds of the city. In the subsequent years, the city government shall appropriated annually based on the budget presented by the Board subject to the approval of the Chief Executive, confirmation of the Sangguniang Panlungsod and the usual government accounting and auditing rules and regulations.
SECTION XIX. SEPARABILITY CLAUSE . In the event that any provision is declared illegal or unconstitutional, the validity of the other provisions that are not affected thereby shall remaining to have full force and effect.
SECTION XX. 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 XXI. EFFECTIVITY . This Ordinance shall take effect thirty (30) days from the date of its publication either by posting in three conspicuous places in La Carlota City or in newspaper of print circulation in the City of La Carlota and the Province of Negros Occidental
* * *