ENACTING INVESTMENT CODE OF THE MUNICIPALITY OF MARIBOJOC, BOHOL OF 2004.
Authored by: Kag. Alberto E. Arangoso
Co-Authored by: Kag. Leoncio E. Reselosa
Kag. Nicanor J. Lamoste
Kag. Cesar G. Campos
Kag. Samuel N. Laluna
Kag. Gumersindo M. Arocha
WHEREAS, the Municipality of Maribojoc, Bohol needs investors for different business to be established for the progress of the town;
WHEREAS, the has an approved Comprehensive Land Use Plan (CLUP) wherein the municipality is divided into areas for development;
WHEREAS, the progress of the community will depend upon the cooperation of the investors for the business to grow in order to employ our people;
WHEREAS, in order to have a business climate favorable for investors, there is a need to enact an Investment Code to attract investors to establish business or industries in this municipality;
WHREFORE, be it ordained by the Sangguniang Bayan of Maribojoc, Bohol in session duly assembled that:
SECTION 1. Title.- This ordinance shall be known as the “Investment Code of the Municipality of Maribojoc, Bohol of 2004.
SECTION 2. Declaration of Investment Policy.-. It is hereby declared as a policy of the Local Government of Maribojoc, Bohol to promote and encourage domestic and foreign investment in the Municipality of Maribojoc, Bohol. Hereunder are the following investment policies of the municipality, to wit:
a.) To provide for investment incentives to business or industries which are now or may hereafter be established in the town;
b.) To encourage investment projects that utilize local labor, substantial amount of indigenous raw materials, and other natural resources of the town;
c.) To promote the marketing of the products of the municipality and to attain self-sufficiency in production;
d.) To promote the town of Maribojoc, Bohol as a favorable investment destination with adequate power, sustainable water supply, free of urban congestion and pollution and accessible to any kind of transportations to other regions of the country.
e.) To promote the active participation of Non-government organizations, peoples organizations and other private sectors as partners and catalysts in the achievements of goals and objectives of the municipality.
SECTION 3 Definition of Terms.-. As used in this Code, the following terms and phrases shall mean, to wit:
Business – Any kind of legitimate business, whether as a branch, head of Office, or newly established business in accordance to and is subject to any existing rules and regulations of the Securities and Exchange Commission, the Department of Trade and Industry, Banko Sentral ng Pilipinas, Housing and Use Regulatory agencies; Trade or commercial activity regularly engaging as a means of livelihood or with a new to profit.
Investment – Spending of money or capital for profitable return.
Infrastructure – Any form of building, driveways, roads, concrete waiting areas, concrete water tanks and concrete port facilities to be used by the business and any of the business-related activities.
Improvements – Any fixed and immovable concrete improvements undertaken by or for the business operation and any of the business-related activities which has expected life span of more than ten (10) calendar years.
Municipality of Maribojoc – Shall cover the territorial land and waters of the Municipality of Maribojoc.
Code – Shall refer to the Municipality of Maribojoc
Incentive – Shall refer to fiscal and non-fiscal incentives
Areas of Investment – Refer to economic activities or sectors declared as priority investment areas by the LGU’s Comprehensive Land Use Plan.
Registered enterprises – Refer to enterprises or business registered in accordance with the provisions of the code.
Stocks and Inventories – Covers, wet, dry and all kinds of goods, whether mobile or immobile, which are for sale or resale; those which are used to manufacture, make, tool, calibrate, assemble, bottle, mill, refine, can, craft and package any kind of business product, those which are used as business-owned recreational and service transportation, those which are used as tools to sell any business product, those which are used as office tools, and those which are used as medical tools;
SECTION 4 Authority and Applications.
This code shall apply to all persons, entities or enterprises engaged in any legitimate business or desires to invest and/or establish business within the municipality provided that they meet the qualifications herein provided.
SECTION 5 Requirements and Procedures-.
In order to avail of the Incentives provided for in this ordinance, the following requirements and procedures must be met and observed;
5.1 That the business to be established shall not be less than One Million pesos (Php 1,000,000.00) as capitalizations herein provided.
5.2 That the business to be established is not covered by other tax incentive ordinances of the Municipality of Maribojoc;
5.3 That the application for exemption shall be provided to the Office of the Mayor to effect the release of the necessary Mayor’s Certification for the full enjoyment of the incentive provided herein;
5.4 That the applicant has applied for registration and no payment will be paid for such purpose.
5.5 That the participating enterprises must employ at least Seventy percent (70%) Filipino working force particularly residents of Maribojoc, Bohol as certified by the Barangay Captain and approved by the Municipal Mayor.
5.6 That the applicant his complied the Mayor’s Permit requirement, building and other necessary permits and/or clearance prior to the establishment or/operation of such business.
SECTION 6 Criteria in Investment Priority Determination-.
No business and other economic activity shall be included in the investment priority plan unless it shown to be environmentally, socio- economically, technically, people acceptability and sounds after proper investigation and analysis of concern agency.
SECTION 7 Land Area Preparation -.
There shall be a committee to be created to negotiate with the Private land owners wherein the proposed business establishments will be established so that investors will not be hard up in the final negotiation of lands with the lot owners for such establishments.
7:1 The committee created for this purpose will look for an area suited for such kind of business so that investors will be assisted in the acquisition of land for business venture
7:2 The committee shall be composed in the following composition, to wit:
Chairman – to be designate by the Sangguniang Bayan
Members – Municipal Assessor
– NGO – to be appointed by concern MGO/PO
– Mayor’s Representative, to be appointed by the Mayor
– SB Member, Chairman, Committee on Cadastral Survey
SECTION 8 Coverage -.
Applicant having the following type or nature of business shall be given priority under this Investment Incentive Program.
8.1 Enterprises to be established in less developed areas of this municipality as determined by the zoning and Land Use Ordinance.
8.2 Manufacturing or Processing Plants
8.3 Tourism oriented enterprises such as accommodation facilities, nature parks/beach/mountain resort, transportation services, golf course and other tourism related services.
8.4 Pioneering enterprises (Malls, department stores and etc.)
8.5 Light manufacturing such as garments, precision, assembly, semi- conductors and farm implement.
8.6 Banking institutions
8.7 Communication facilities such as telephone radio station, Cable T.V. and other communication facilities.
8.8 Agri-business such as post harvest facilities, high value crop production fruit/meat processing, feed mill and aquaculture.
8.9 Sub-division housing project
8.10 Water and Power resources development enterprises
8.11 Canning factories
8.12 Ice Plants and the like
8.13 Cement factory (Wet process)
SECTION 9 Incentive Coverage Limitation -.
The incentive stipulated herein shall have coverage limitation under these conditions:
9.1 The incentives herein provided for shall be forefeited in the event a person, natural or juridical, shall cede, sell and transfer the business enjoining the tax incentives stipulated in this ordinance.
9.2 A second or new owner or owners of the same business whose infrastructure and improvements has previously availed of the tax incentives of the first incentive.
9.3 Any business establishment being sold to another company or owner but being remodeled or improved by additional capitalization.
SECTION 10 Incentives -.
Any applicant qualified under the provisions of this code shall enjoy the following exemptions privileges or benefits, to wit:
10.1 Fiscal Incentives:
With Cash Capital Investment of (Exemptions) (Period)
P 1M – P 3M (Phil. Investment) 50% business tax – 3 yrs.
And 60% of the 40%
$ 1M – $ 3M (Foreign Investment) LGU RPT share – 3 yrs.
Over P 3M – P 10M (Phil. Invest.) 60% business tax – 4 yrs.
and 80% of the 40% LGU RPT share
Over $ 3M 0 $ 10 (Foreign Invest.) – 4 yrs.
Over P 10M – P 15M (Phil. Invest.) 90% business tax – 5 yrs.
Over $ 10M – $ 15M (Foreign Invest.) and 90% of the – 5 yrs.
40% LGU RPT share
Over P 15M – (Phil Investment) 100% business tax – 6 yrs.
And 100% RPT LGU share
Over $ 15 – (Foreign Investment) – 6 yrs.
10.2 Non Fiscal – Incentives
10.3 Consistent support for industrial peace.
10.4 Exemption from Contractor Tax should the qualified business concerned decides to transact with the Municipal Government it being qualified contractor.
SECTION 11 Expanding Enterprise -.
Any enterprises existing at the time of the passage of this Code may avail of the herein provided incentives provided that the requirements to avail same are met and the expanding enterprise “must invest an additional investment of not less than Php 1M for Philippine Investors and $ 1M for Foreign Investors.
SECTION 12 Exceptions -.
12.1 This Investment Incentive Program can be applied to any business establishments which avail for Local Government taxes only not for Provincial or National Government taxes.
12.2 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, where the incentives and privileges shall be transferred to the heirs of decedent in accordance with law of succession. If the applicant is a natural person, Mergers, consolidation by outs and the like of corporations or partnerships shall be decided on a case-to case basis by the Board provided that when such movement are lone to strengthen the corporation and increase its capital investment, then such movement may be treated as an expanding enterprises;
SECTION 13 Creation of Investment Board and its Composition -.
For the purpose of giving effect to this code, there is hereby created the Maribojoc Investment Board to implement the provisions of the code.
The Investment Board shall be composed of the following:
Chairman – Municipal Mayor
Vice Chairman – Vice Mayor
= SB Member, Chairman, Committee on Appropriation and Finance
= SB Member, Chairman, Committee on Environment and Natural Resources
= SB Member, Chairman, Committee on Ways and Means
= SB Member, Chairman, Committee on Tourism
= Municipal Budget Officer
= Representative of DTI
= Representative from an existing bank
= ABC President
= Representative from the Academe
= Representative from the Maribojoc Vendor’s Association
= Representative from an NGO / PO
SECTION 14 Powers/Functions of the Board -.
14.1 To formulate the rules and regulations in accordance with the provisions
of this code subject to the approval of the Sangguniang Bayan.
14.2 To screen, evaluate, accept, approve or reject applications for investment incentive and privileges under this ordinance.
14.3 The Chairman or any members of the Board can call for a meeting to formulate rules and guidelines to ensure compliance with the provisions of this ordinance.
14.4 All applications submitted to the Maribojoc Investment Board shall be acted upon within fifteen (15) days upon receipt thereof.
14.5 In order to give more effect to the Investment Program under this ordinance, the Maribojoc, Investment Board is hereby empowered to conduct Trade Mission both Local and Foreign for the purpose of inviting investors as well as provided necessary information and dissemination drive to parties willing to avail of the Investment Incentive Program under this ordinance.
That in case of foreign trade mission, the approval of the Sangguniang Bayan must be secured. Trade mission involving Local and Foreign international trade organization as well as trade mission involving Board of Investor’s Office, Foreign embassies consulate in the Philippines and abroad shall be headed by the Municipal Mayor or in his absence by any of his duly authorized member of the Maribojoc Investment Board.
14.6 The Board can negotiate with any prospective investors within the Province of Bohol and outside the province for an establishment of business enterprises in the town, provided that they will follow the rules and regulations for this purpose.
14.7 The Local Investment Board is hereby empowered to identify, acquire and develop industrial Estates and Business Parks and other investment areas in Maribojoc, Bohol.
SECTION 15 Annual Inspection -.
The Maribojoc Investment Board may conduct an annual or regular inspection on the participating farms on their progress either by itself or by its authorized representative to conduct same and said inspection be limited to the gross sales/receipts, compliance to the minimum wage law or to the provisions of this code and privileges/incentives granted as herein provided.
SECTION 16 Reporting-.
At the end of the Calendar Year but not later than March 30th, all registered members, to this program shall submit copies of duly audited financial statements to the Local Investment Board, the Sangguniang Bayan, the Municipal Treasurer and the Office of the Mayor for evaluation and record purposes.
SECTION 17 Penalty-.
Any person, natural or juridical, found and proven to have falsified on the written application for the availment of tax incentive of this ordinance shall be required to refund the whole amount of tax as granted by the Local Government to the said enterprise.
SECTION 18 Separability Clause-.
If any section or part of this ordinance is found to be inconsistent with the existing laws of the Republic of the Philippines, shall not invalidate the entire provisions of this ordinance.
SECTION 19 Effectivity-.
This Code shall take effect upon approval.
Let copies be furnished, the Sangguniang Panlalawigan of Bohol and to all prospective Investors for their guidance and information.
Adopted / Enacted: October 29, 2004
I HEREBY CERTIFY TO THE CORRECTNESS
OF THIS CODE:
FILOMENA V. ASEDILLA
Presiding Officer-SB Member
ERLINDA V. CASTILON
Acting Secretary to the Sanggunian
PHILIP R. MEDEQUISO
Municipal Vice Mayor
ENGR. GABINO C. REDULLA
Date signed: Nov. 05, 2004