Ordinance No.7

(Enacted by Resolution No.142, Series of 2009)

Ordinance No.7

(Enacted by Resolution No.142, Series of 2009)

This ordinance shall be known as the“Provincial Investment Incentives Ordinance of Bataan.”

This ordinance shall be known as the “Provincial Investment Incentives Ordinance of Bataan.”

It is the policy of the Provincial Government of Bataan to attract, promote and welcome productive investments from foreign and local investors, partnership, corporation, and governments, in activities which significantly contribute to provincial industrialization and socio-economic development to the extent that foreign investment is allowed in such activity, by the Constitution and relevant laws.  Foreign as well as local investments shall be encouraged in enterprises that significantly expand livelihood and employment opportunities for Bataeños; enhance economic value of farm products; promote the interest and welfare of the consumers; expand the scope, quality and volume of exports and their access to foreign markets; and/or transfer relevant technologies in agriculture, industry and support services.

It is the policy of the Provincial Government of Bataan to attract, promote and welcome productive investments from foreign and local investors, partnership, corporation, and governments, in activities which significantly contribute to provincial industrialization and socio-economic development to the extent that foreign investment is allowed in such activity, by the Constitution and relevant laws.  Foreign as well as local investments shall be encouraged in enterprises that significantly expand livelihood and employment opportunities for Bataeños; enhance economic value of farm products; promote the interest and welfare of the consumers; expand the scope, quality and volume of exports and their access to foreign markets; and/or transfer relevant technologies in agriculture, industry and support services.

Section 3. The Provincial Investment Incentives Board

For the purpose of giving effect to this Ordinance, a Provincial Investment Incentives Board (PIIB) is hereby created.

Section 3. The Provincial Investment Incentives Board

For the purpose of giving effect to this Ordinance, a Provincial Investment Incentives Board (PIIB) is hereby created.

The Board shall be composed of the following:

Chairman – The Provincial Governor

Vice-Chairman – The President or duly elected Representative of the          Bataan Chamber of Commerce and Industry

Ex-Officio Members:

–     Chairman, Committee on Trade and Industry, SangguniangPanlalawigan;

–     Representative from the Department of Trade and Industry, Bataan Provincial Office;

–     Representative of duly accredited NGO;

–     President or the duly elected representative of the Bataan Bankers Association;

–     President of the Municipal Mayor’s League;

–     President, Tourism Council of Bataan

–     Representative from the Department of Labor and Employment;

–     Representative from the Provincial Environment & Natural Resources Office;

–     Representative from the Provincial Cooperative Development Office;

–     Municipal Mayors;

–     Provincial Agriculturist;

–     Representative from the Department of Environment and Natural Resources;

–     Representative from the Department of Agrarian Reform;

–     Representative from the Department of Interior and Local Government;

–     Provincial Budget Officer

–     Provincial Treasurer

The Board shall be composed of the following:

Chairman – The Provincial Governor

Vice-Chairman –To be designated by the Governor

Members:

–     Chairman, Committee on Trade and Industry, Sangguniang Panlalawigan;

–     President, Bataan Chamber of Commerce and Industry, Inc.;

–     Provincial Director, Department of Trade and Industry;

–     Provincial Director, Department of Labor and Employment;

–     Provincial Cooperative Development Officer;

–     Municipal/City Mayor of Host LGU;*

–     Provincial Environment and Natural Resources Officer, DENR;

–     Provincial Director, Department of Interior and Local Government;

–     Provincial Legal Officer;

–     Provincial Agrarian Reform Officer, DAR; and

–     President, Philippine Institute of Certified Public Accountants-Bataan   Chapter;

Or duly authorized representative of each member agency

* Attends in the Board meeting only if investor locates in their area

There shall be created a Provincial Investment Promotion Unit, a division under the Office the Governor, which shall be manned by one (1) Investment Promotion Officer (IPO) whose rank and position is equivalent to Division Chief, Salary Grade 22, one (1) Investment Promotion Specialist (IPS) position with Salary Grade 15 or its equivalent and one (1) Clerk position with Salary Grade 6 who shall serve as Liaison and Secretariat of the PIIB and to assist the Board in its functions as well as process and provide all applicants with the application forms and other required documents for registration.

            The PIPU in coordination with the Department of Trade and Industry – Bataan Provincial Office and national and local agencies, shall upon authority of the Board draw plans and programs and initiate investment promotion activities for the province.

There shall be created a Provincial Investment Promotion Division (PIPD)under the Provincial Cooperative and Enterprise Development Office (PCEDO), which shall be headed by one (1) Project Development Officer IV (PDO IV) whose rank and position is equivalent to Division Chief, Salary Grade 22, and shall be supported by two (2) Technical Staff:

a. One (1) Project Development Officer II (PDO II) position with Salary Grade 15

b. One (1) Project Development Officer I (PDO I) position with Salary Grade 11 or its equivalent.

The PIPD in coordination with the Department of Trade and Industry – Bataan Provincial Office and national and local agencies, upon authority of the Board shall:

1.  Draw plans and programs and initiate investment promotion activities for the province.

2.   Serves as Liaison and Secretariat of the Board

3. Provides effective and prompt assistance to investors who wish to establish business in the province

4.  Processes and provides all applicants with the application forms and other required documents for registration and availment of incentives.

5.  Responds to general inquiries on investment opportunities, incentives, rules and regulations, and provide other related information

6.   Conducts inspection of registered enterprises.

The qualifications of the PIPD Staff shall be incorporated in the IRR.

The Board shall be responsible for the following:

a.                To screen, evaluate, accept, approve or disapproved applicants who want to avail of the investment incentives and privileges and to issue Certificate of Registration;

b.                The Chairman or a majority of the Board can call for a meeting to formulate rules and guidelines to ensure compliance with the provisions of this ordinance.  The Board shall meet once in every quarter or as the needs arises;

c.                All applications submitted to the PIIB shall be acted upon within thirty (30) days upon receipt hereof;

d.                The Board is empowered to conduct hearings on issues concerning violations committed against any provision of these rules;

e.                In order to give effect to this Ordinance, the  Board is hereby empowered to conduct investment promotion activities such as Trade and Investment Mission, Business Conferences, Publication of Promotional Collaterals and other related promotional and developmental activities for the purpose of generating investment and employment.

The Board shall be responsible for the following:

a.                To screen, evaluate, accept, approve or disapproved applicants who want to avail of the investment incentives and privileges and to issue Certificate of Registration;

b.                The Chairman or a majority of the Board can call for a meeting to formulate rules and guidelines to ensure compliance with the provisions of this ordinance.  The Board shall meet once in every quarter or as the need arises;

c.                All applications submitted to the Board shall be acted upon within thirty (30) days upon receipt hereof;

d.                The Board is empowered to conduct hearings on issues concerning violations committed against any provision of these rules;

e.                In order to give effect to this Ordinance, the Board is hereby empowered to conduct investment promotion activities such as Trade and Investment Missions (Outbound and Inbound), Business Conferences, Publication of Promotional Collaterals and other related promotional and developmental activities for the purpose of generating investment and employment.

f.                  Preparation and submission of Annual and Medium-Term Investment Development Plan to Sangguniang Panlalawigan

g.                To designate PIPD as the technical secretariat of the Board for the    implementation of the provisions of this Ordinance.

The Chairman shall have the following powers and duties:

a.        To preside over the regular and special meetings of the Board;

b.        To render annual reports to the province of Bataan and   special reports as may be requested;

c.        To recommend to the Board such policies and support measures that may be deemed necessary to carry out the objectives of this Ordinance;

d.        Generally, to exercise such other powers and perform such other duties as may be authorized by the Board from time to time.

The Chairman shall have the following powers and duties:

a.        To preside over the regular and special meetings of the Board;

b.        To render annual reports to the province of Bataan and such special reports as may be requested;

c.        To recommend to the Board such policies and support measures that may be deemed necessary to carry out the objectives of this Ordinance;

d.        Generally, to exercise such other powers and perform such other duties as may be authorized by the Board from time to time.

The Vice-Chairman shall have the following powers and duties:

a.                   To preside over the regular and special meetings of the Board in the absence of the Chairman;

b.                  To perform other duties of the Chairman in the absence of the latter and such other duties as may be assigned to him by the Board.

The Vice-Chairman shall have the following powers and duties:

a. To preside over the regular and special meetings of the Board in the absence of the Chairman;

b. To perform other duties of the Chairman in the absence of the latter and such other duties as may be assigned to him by the Board.

Aside from usual function of evaluating the application for tax incentive, the following members of the Board shall:

1.             Provincial Treasurer’s Office – Evaluate investment plan and detail cost of the project. Prepare estimated cost of Real Property Tax exemption.

2.             Provincial Assessor’s Office-Validate existing facilities and assess capital investment (land, building and machinery).

3.             Department of Environment and Natural Resources –Checks compliance of the company/project to the environmental laws. Assists the company-applicant in securing Environmental Compliance Certificate when needed.

4.             Philippine Institute of Certified Public Accountants – Evaluates the company’s Audited Financial Statement and submits results to the Board.

5.             Department of Trade and Industry – – Validates if the applicant is registered to their office (BNR) or if registered with the Board of Investment and Securities and Exchange Commission.

6.             Department of Agrarian Reform – Checks and verifies if the company secured the necessary conversion permit if needed particularly from agricultural and non-agricultural user. If none, assists the company to secure conversion permit if applicable.

7.             Provincial Agriculture Office – Verifies compliance of the project proponent with the existing agricultural policies, guidelines and procedures for the proposed projects that are agriculture related or those which have implications to agriculture production areas.

8.             Bataan Chamber of Commerce & Industry, Inc. – Determines the contribution of the project in the economic and business development in the province.

9.             Provincial Tourism Office – Determines the possible contributions of the project to the enhancement of the tourism industry, or negative/unfavorable effects, if any. Verifies compliance of the project proponent with the existing national tourism policies, standards and guidelines.

10.         Committee on Trade and Industry, Sangguniang Panlalawigan– Provides opinions on the application and the project vis-à-vis this Ordinance, Local Government Code and other legal basis and initiates the passage of resolution and ordinances.

11.            Provincial Planning and Development Office-Ensures that the project being applied is in conformity within the areas identified in the Provincial Development and Physical Framework Plan (PDPFP).

12.            Provincial Cooperative and Enterprise Development Office (PCEDO)-Validates if the cooperative applicant is registered with the Cooperative Development Authority, in good standing and area of operation covers Bataan.

13.            Municipal/City Mayors- Adopt this Ordinance and/or facilitate registration of enterprise based on their Local Investment Incentives Code. Endorse applicant to the Board to avail possible provincial incentives.

14.            Department of Labor and Employment- Ensures that the company/project complies with minimum wage laws, work safety standards and other labor laws.

15.            Provincial Legal Office – Provides legal opinions or   recommendations to the Board on any issues that may arise.

16.            Department of the Interior and Local Government-Advises on matters pertaining to local governance and provides assistance in the implementation and issuances of national laws.

17.            LMP-Bataan Chapter-Initiates adoption of this Ordinance by municipalities and city.

Section 9. As Used in this Rules

a.                “Board” shall mean the Bataan Provincial Investment Incentives Board (BPIIB);

b.                “Ordinance” shall refer to the Provincial Investment Incentives Ordinance;

c.                “New Enterprise” shall refer to the prospective enterprise that is not engaged in any kind or type of business in the province and is interested in establishing a place of operation or production in the province;

d.                “Capitalization” shall mean the total or initial investment in a business that has been paid inn a corporation, partnership, cooperative or invested in a single proprietorship, which may be in cash or in property;

e.                “Registered Enterprises” shall refer to those enterprises/establishments registered in accordance with the provision of this ordinance;

f.                  “Existing Enterprises” shall refer to those establishments/enterprises whose places of operation or production are located within the territorial jurisdiction of the province of Bataan;

g.                “SMEs” shall refer to small and medium-sized enterprises;

h.                “Tax” shall refer to the monetary contribution levied by the law-making body;

i.                  “Investment Priority Area” shall mean the economic activities that the LGUs, private and government sectors have identified as stated in the Investment Development Plan of the Province.

Section 10. As Used in this Rules

a.               “Board” shall mean the Bataan Provincial Investment Incentives Board (BPIIB);

b.               “Ordinance” shall refer to the Provincial Investment Incentives Ordinance;

c.                “New Enterprise” shall refer to the prospective enterprise that is not engaged in any kind or type of business in the province and is interested in establishing a place of operation or production in the province;

d.             “Existing Enterprises” shall refer to those establishments/enterprises whose places of operation or production are located within the territorial jurisdiction of the province of Bataan;

e.             “Registered Enterprises” shall refer to those enterprises/establishments registered in accordance with the provision of this ordinance;

f.               “Capitalization” shall mean the total or initial investment in a business that a corporation, partnership, cooperative or a single proprietorship, which may be in cash or in property, has invested in the project excluding the operating capital;

g.             “Tax” shall refer to the monetary contribution levied by the law-making body;

h.            “Amusement” shall mean places of entertainment and relaxation as enumerated in the identified investment priority areas;

i.              “Preferred Investment Activities” shall mean the economic activities that the LGUs, private and government sectors have identified as stated in the Investment Development Plan of the Province;

j.              “Less-Developed Areas” shall refer to areas deficient in infrastructure development, public utilities and other facilities including its accessibility to develop urban centers, low-level of investments, high rate of unemployment and/or underemployment, and lack of economic activities;

k.             “Distressed Companies” shall refer to those companies whose cash balances are dangerously low, checks are overdrawn out from the bank, vendor payments are extremely late, can barely make payroll, lay-offs have started, employees’ morale are falling, best people are beginning to leave, creditors and banks are requesting for meetings.

Section 10. Investment Development Plan

The Board after consultation with the appropriate government agencies and the private sector shall submit an annual Investment Development Plan to the SangguniangPanlalawigan for evaluation and approval.

Section 11. Annual and Medium-Term Investment Development Plan

The Board after consultation with the appropriate government agencies and the private sector shall submit an Annual and Medium-Term Investment Development Plan to the Sangguniang Panlalawigan for evaluation and approval.

Business enterprises having the following type or nature of business shall be given priority under this Ordinance:

a.                   Labor generating enterprises;

b.                   Enterprise to be established in less developed areas in the province in accordance with the zoning and land use ordinance of the province and in municipality;

c.                   Manufacturing enterprises using raw materials available locally;

d.                   Manufacturing and Processing Plants;

e.                   Tourism-oriented Enterprises;

f.                     Pioneering Enterprises;

g.                   Service-oriented Enterprises;

h.                   Water and Power Resource Development Enterprises;

i.                     Telecommunications Development Enterprises;

j.            Agri-business Enterprises

Business enterprises having the following type or nature of business shall be given priority under this Ordinance:

a.             Enterprise to be established in less-developed areas in the province or growth sub-centers in accordance with the approved PDPFP

b.             Manufacturing enterprises using raw materials available locally

c.             Manufacturing and Processing Plants

d.             Tourism-Oriented Enterprises

This covers the following:

(1)Tourism enterprises – this covers the establishment of facilities, services and attractions involved in tourism such as, but not limited to: travel and tour services; tourist transport services, whether for land, sea or air transportation; tour guides; adventure sports services involving such sports as mountaineering, spelunking, scuba diving and other sports activities of significant tourism potential; convention organizers; accommodation establishments, including, but not limited to hotels, resorts, apartelles, tourist inns, motels, pension houses, and home stay operators; tourism estate management services, restaurants, shops and department stores, sports and recreational centers, spas, museums and galleries, theme parks, convention centers and zoos.

(2) Medical Tourism Facilities- Tertiary Hospitals for medical tourism

e.             Pioneering Enterprises

This covers the following:

(1) Enterprises which manufacture, process or produce, and not merely involved in  the assembly or packaging of goods, products, commodities or raw materials that have not been or are not being produced in the province on a commercial scale; or

(2) Enterprise which uses a design, formula, scheme, method, process or system of production or transformation of any element, substance or raw materials into another raw material or finished goods which is new and untried in the province; or

(3)    Engaged in the pursuit of agricultural, forestry and/or services including the industrial aspects of food processing whenever appropriate, pre-determined by the Board, in consultation with the appropriate Department, to be feasible and highly essential to the attainment of the national goal, in relation to a declared specific national food and agricultural program for self-sufficiency and other social benefits of the project; or

(4)    Project which produces non-conventional fuels or manufactures equipment which utilize non-conventional  sources of energy or other  non-conventional fuels or sources of energy in its production, manufacturing or processing operations. Provided That the final product in any of the foregoing instances, involves or will involve substantial use and processing of domestic raw materials, whenever available; taking into account the risks and magnitude of investment.

f.               Export Service-Oriented Enterprises

This covers service activities rendered to clients abroad such as call center, business/knowledge processing, software development, animation, data transcription, engineering design, ICT support activities and other BPM-related industries.

g.             Water and Power Resource Development Enterprises

h.             Telecommunications Development Enterprises

This covers the establishment of new telecommunications infrastructure

in the provinces particularly in the rural areas as endorsed by the

National Telecommunications Commission (NTC) and utilizing at least

Fiber-optic technology.

i.             Agriculture/Agri-business Enterprises and Fishery

This covers production and processing of agricultural and fishery products including their by-products and wastes, biofuels, feeds, and organic fertilizers.

j.              Research and Development

This covers commercial and in-house R&D activities, and the establishment of centers for excellence, innovation and skills development training institutions.

k.             Engineered  Products

This covers shipbuilding and repair, manufacture of machinery and equipment, including their parts and components, basic iron and steel products, long steel products (billets and reinforcing steel bars).

l.     Solid Waste Management and Industrial Waste Water Projects

This covers the establishment of waste recycling or treatment facility integrated with manufacturing facility to produce semi-finished or finished products using inputs 100% from locally-generated solid waste materials and scraps. It also covers the establishment of industrial waste water treatment facilities and the adoption of water pollution control technology, cleaner production and waste minimization.

m.     Power Generation

Generation of power using alternative sources such as hydro, solar, wind, wave power, geothermal, bio-energy and tidal power that do not produce greenhouse effect or compromise the ability of the future generations to meet their needs. It also includes technology designs to improve energy efficiency.

n.       Green Project

This covers manufacture of environment-friendly products using recyclable materials, less petroleum products and chemicals.

o.       Port Development and Operation

Section 12. Amendments

The Board, at any time, may amend areas in the investment development plan, alter any of the terms of the declaration of an investment area or designation of the measured capacities or terminate the status of preference. In no case, however, shall any amendments of the plan impair whatever rights may already been legally vested in registered enterprises which shall continue to enjoy such rights to full extent under this Ordinance. The Board shall not accept application in an area of investment prior to the approval of the same as a preferred area nor after approval of its deletion as an investment priority area.

Section 13. Amendments

The Board, at any time, may amend areas in the Investment Development Plan, alter any of the terms of the declaration of an investment area or designation of the measured capacities or terminate the status of preference. In no case, however, shall any amendments of the plan impair whatever rights may already been legally vested in registered enterprises which shall continue to enjoy such rights to full extent under this Ordinance. The Board shall not accept application in an area of investment prior to the approval of the same as a preferred area nor after approval of its deletion as a preferred investment activity.

Section 13. Qualifications of New Enterprise

This Ordinance shall apply to any person, partnership or corporation, association and cooperative, provided that they meet the following qualifications:

a.)  Must be qualified to do business and must have complied with all the requirements mandated under the local and existing national laws and the Constitution;

b.)  If single proprietorship, partnership, corporation, association or cooperative, it shall be duly registered with appropriate government agencies, such as the Department of Trade and Industry, the Securities and Exchange Commission (SEC), the Cooperative Development Authority (CDA) and other appropriate government agencies;

c.)  Must have an initial investment of not less than PhP 5M in case of Filipino investors, and not less than US$200,000 for foreign investors ;

d.)  Must remit actual deposit of the required amount

of investments whether initial or additional or expansion to any bank of their choice in the Province of Bataan and can be covered by a Certificate of Deposits duly signed by the Bank Managers;

e.)  Must engage in economic activity as stated in investment priority areas;

f.)  that prospective investor’s place of operation or production must be located within the territorial jurisdiction of the province of Bataan;

g.) that the new enterprises will provide out of the labor force an employment of no less than 50% of the total labor force to the bonafide residents of Bataan.

Section14. Qualifications of New Enterprise

This Ordinance shall apply to any person, partnership or corporation, association and cooperative, provided that they meet the following

qualifications:

a.)  Must be qualified to do business and must have complied with all the requirements mandated under the local and existing national laws and the Constitution;

b.)  If single proprietorship, partnership, corporation, association or cooperative, it shall be duly registered with appropriate government agencies, such as the Department of Trade and Industry, the Securities and Exchange Commission (SEC), the Cooperative Development Authority (CDA) and other appropriate government agencies;

c.)  Must have an initial investment of not less than Php 100 Million for Filipino investors or its US Dollar equivalent for foreign investors ;

d.)  Must remit actual deposit of the required amount of investments whether initial or additional or expansion to any bank of their choice in the Province of Bataan and can be covered by a Certificate of Deposit duly signed by the Bank Managers;

e.)  Must engage in economic activity as stated in Chapter IV, Section 12 hereof (Preferred Investment Activities);

f.) that prospective investor’s place of operation or production must be located within the territorial jurisdiction of the province of Bataan;

g.) that the new enterprises will provide out of the labor force an employment of no less than 50% of the total labor force to the bonafide residents of Bataan.

Any existing enterprise may benefit from the incentives provided that they meet the following qualifications:

a.)     That the existing enterprise whose place of operation or production is already situated within the territorial jurisdiction of the Province of Bataan;

b.)     Must have complied with all the requirements mandated by existing local and national laws;

c.)     That the business falls under any of the activities mentioned in Chapter IV, Section 12 hereof (Preferred Investment Activities);

d.)     Expand its existing production facilities such as construction of new buildings, installation of new machineries and equipment or improvements thereof which will result in an increase in production;

e.)      Must have an additional investment of not less than Php 100Million.

Applications shall be filed with the Board recorded in a registration book and date appearing herein and stamped on the applications shall be considered the date of official acceptance.  Upon filing and acceptance, any applicant shall be required to pay a one-time-non-refundable registration fee as follows:

PhP2,500.00  –     for enterprises with a capitalization of at least Five   Million     (PhP5 Million) Pesos up to Ten Million) Pesos;

PhP5,000.00   –    for enterprises with a capitalization of more than Ten Million (PhP10 Million) Pesos up to Fifteen Million (PhP15 Million) Pesos;

PhP7,500.00  –     for enterprises with a capitalization of more than Fifteen Million (PhP15 Million) Pesos up to Forty Million (PhP40 Million) Pesos;

PhP15,000.00  –    for enterprises with a capitalization of more than Forty Million (PhP40 Million) Pesos up to One Hundred Million (PhP100 Million) Pesos;

PhP37,500.00  –    for enterprises with a capitalization of more than One Hundred Million (PhP100 Million) Pesos up to One Billion (PhP1 Billion) Pesos;

PhP50,000.00  –    for enterprises with a capitalization of more than One Billion (PhP1 Billion) Pesos;

The non-refundable filing/registration fee shall be paid together with the following documents:

a.             Three (3) copies of completed application form to be provided for by the Board in accordance with the provisions of the Code;

b.             A copy of the complete project study of the proposed investment showing the project is economically, technically and financially feasible and viable;

c.             A copy of its Article of Incorporation and By-Laws as approved by the Securities and exchange Commission and Board of Investments, as the case maybe;

d.             A certified true copy of the Certificate of Registration with the Securities and Exchange Commission, the Board of Investments, and the Department of Trade and Industry as the case maybe; and

e.        Resolution of the Applicant’s Board of Directors, in case of a Corporation, that authorizes the filing of application.

The application should be filed prior to commencement of any construction of any structure with the Board recorded in a registration book and date appearing herein and stamped on the applications shall be considered the date of official acceptance. Applicants shall be required to pay a one-time non-refundable filing fee of Five Thousand Pesos (Php 5,000.00) to the Provincial Treasurer’s Office together with the following documents for registration:

a.                Letter of Intent addressed to the Governor

b.                Application Form

c.                Company Profile

d.                Project Study or Investment Plan

e.                Photocopy of SEC/DTI/BOI/CDA Registration

f.                  Photocopy of Article of Incorporation and By-Laws

g.                Board Resolution Authorizing the Filing of Application

h.                Document(s) showing that the project (new or expansion) cost is more than Php 100 Million

i.                  Income Tax Return (For existing company)

j.                  Latest Audited Financial Statement with Notes to Financial Statements (For existing company)

k.                Environmental Clearance & Certificate of Non-Coverage

Upon approval/acceptance, the applicant shall also be required to pay to the Provincial Treasurer’s Office a non-refundable registration fee  as follows:

PhP50,000.00  –   for enterprises with a capitalization of One Hundred Million

(PhP 100 Million) Pesos up to Five Hundred   Million (PhP 500 Million) Pesos;

PhP75,000.00  –   for enterprises with a capitalization of more than

Five Hundred Million (PhP500 Million) Pesos up to One   Billion (PhP1 Billion) Pesos

PhP100,000.00 – for enterprises with a capitalization of more than One Billion       (PhP1 Billion) Pesos.

The Board shall issue a Certificate of Registration to the business concerned as registered enterprise duly stating the incentives and privileges granted under the provisions of the Ordinance.

A registered enterprise under this Ordinance shall be issued a certificate of registration under the seal of the Board and the signature of its Chairman and/or such other officer or employee of the Board as it may empower and designate for the purpose. The certificate shall be in such form and style as the Board may determine and shall state, among other matters:

(a) The name of the registered enterprise;

(b) The preferred area of investment in which the registered enterprise is proposing to engage;

(c) The nature of the activity it is undertaking or proposing to undertake, whether      pioneer or non-pioneer, and the registered capacity of the enterprise; and

(d) The other terms and conditions to be observed by the registered enterprise by virtue of the registration.

Enterprises

Section Section16. Rights and Privileges Guaranteed by the  Provincial Government of Bataan

The Provincial Government of Bataan through the Board guarantees all registered enterprises their full entitlement of the rights and privileges provided under this Ordinance and other laws and shall:

a.                Provide concise and comprehensive information to prospective investors regarding the economic priorities of the province, target investment areas, and the general conditions applicable to incoming direct private investment;

b.                Disseminate to investors and the general public, the investment evaluation criteria and registration procedures to enhance government transparency in granting incentives;

c.                Take into full account the need of investors for industrial peace stability, growth and profit in their operations whenever policies are to be formulated and modified affecting investments in the province;

d.                Facilitate implementation of the investment project;

e.                Not interfere or modify arrangements with investors after the details for the implementation of an investment project has been accepted and approved, and the ownership and management structure of the enterprise has been established, unless the law provides otherwise;

f.                  Avoid and/or prevent undue distortion of competition between or among enterprises operating within the territorial jurisdiction of the province, whether domestic or foreign, when granting any special exemptions or incentives aimed at encouraging investment in the identified target areas;

g.                Resolve all doubts and/or conflicts concerning the benefits, privileges, and incentives granted under this Code or in other local ordinances enacted for the purpose of encouraging investment, in favor of the investor.

Enterprises

Section Section18. Rights and Privileges Guaranteed by the  Provincial Government of Bataan

The Provincial Government of Bataan through the Board guarantees all registered enterprises their full entitlement of the rights and privileges provided under this Ordinance and other laws and shall:

a.                   Provide concise and comprehensive information to prospective investors    regarding the economic priorities of the province, target investment areas, and the general conditions applicable to incoming direct private investment;

b.                  Disseminate to investors and the general public, the investment evaluation criteria and registration procedures to enhance government transparency in granting incentives;

c.                   Take into full account the need of investors for industrial peace stability, growth and profit in their operations whenever policies are to be formulated and modified affecting investments in the province;

d.             Facilitate implementation of the investment project;

e.                   Not interfere or modify arrangements with investors after the details for the implementation of an investment project has been accepted and approved, and the ownership and management structure of the enterprise has been established, unless the law provides otherwise;

f.                     Avoid and/or prevent undue distortion of competition between or among enterprises operating within the territorial jurisdiction of the province, whether domestic or foreign, when granting any special exemptions or incentives aimed at encouraging investment in the identified target areas;

g.                   Resolve all doubts and/or conflicts concerning the benefits, privileges, and incentives granted under this Ordinance or in other local ordinances enacted for the purpose of encouraging investment, in favor of the investor.

Free use of government land owned by the Provincial and/or Municipal Government for a period of TEN (10) Years, if the registered enterprise concerned shall construct an infrastructure at the less developed area in the province, subject to the approval of the SangguniangPanlalawigan/Sangguniang Bayan; provided, however, that the ownership of the said infrastructure constructed will be transferred to the Provincial/Municipal Government upon the expiration of the Ten (10) Year period as mentioned herein; provided further, that in case the registered enterprise decides to continue its business operation after expiration of the Ten (10) Year period, he may continue to occupy the infrastructure facilities without any rental, except to pay for the rental of the lot where the infrastructure was constructed at a reasonable rate to be approved by the SangguniangPanlalawigan and/or Sangguniang Bayan upon the recommendation of the Local Finance Committee; provided; finally, that the proposed site is not allotted for specific government use.

Free use of government land owned by the Provincial and/or Municipal Government for a period of TEN (10) Years, if the registered enterprise concerned shall construct an infrastructure at the less-developed area in the province, subject to the approval of the Sangguniang Panlalawigan/Sangguniang Bayan; provided, however, that the ownership of the said infrastructure constructed will be transferred to the Provincial/Municipal Government upon the expiration of the Ten (10) Year period as mentioned herein; provided further, that in case the registered enterprise decides to continue its business operation after expiration of the Ten (10) Year period, he may continue to occupy the infrastructure facilities without any rental, except to pay for the rental of the lot where the infrastructure was constructed at a reasonable rate to be approved by the Sangguniang Panlalawigan and/or Sangguniang Bayan upon the recommendation of the Local Finance Committee; provided; finally, that the proposed site is not allotted for specific government use.

Section 18. Non-Fiscal Incentives

Registered new and existing enterprises shall be granted the following non-fiscal incentives:

a.                Assistance in securing application for business permits and licenses;

b.                Consistent support of the Provincial Government to maintain industrial peace and security;

c.                Assistance in securing direct source of electric power, water supply and telecommunication services;

d.                Assistance in the negotiation of special rates for industries with a minimum load of at least 1000 kilowatts;

e.                Assistance in site selection and negotiation for right of way;

f.                  Assistance in labor recruitment and arbitration; and

g.                Other non-fiscal incentives as may be determined by the Board.

Section 20. Fiscal Incentives

Registered new and existing enterprises with expansion or modernization projects shall be granted the following fiscal incentives:

(1) One hundred per cent (100%) exemption from the Provincial share of Real Property Tax shall be enjoyed by abovementioned firms for Five (5) years upon approval of registration.

2)  Exemption from Tax on Transfer of Real Property Ownership;

3)  Exemption from Franchise Tax for Three (3) years;

4)  Exemption from Amusement Tax for Three (3) years;

5)  Exemption from Land Tax for Fifteen (15) years for Commercial Tree Plantation;

6)  Exemption from Land Tax for Ten (10) years for Fruit Bearing Tree Plantation.

Incentives granted to existing enterprises shall apply only to additional capitalization and shall not apply to previous investment. In no case, however, shall rights to incentives be transferred from legal grantee to another and shall be enjoyed on one occasion only.

Under this Ordinance, projects locating in less-developed areas with a minimum capitalization of Php 100 million maybe be entitled to Seven (7) years Real Property Tax holiday.

As part of the investment retention, extension and diversification program, existing medium to large enterprises which is in the verge of bankruptcy or experiencing serious symptoms of distress and/or bankruptcy may be granted a one-time 1 year Real Property Tax holiday.

The following projects are entitled to Seven (7) years local tax holiday:

a.       Recycling and treatment facility integrated with manufacturing facility to produce semi-finished and finished products using 100% input from locally generated solid waste material or scraps.

b.       This covers the establishment of industrial water treatment facilities and waste collection integrated with treatment facilities and the adoption of water pollution control technology, cleaner production and waste minimization.

Registered new and existing enterprises with expansion or modernization projects shall be granted the following non-fiscal incentives:

a.                Assistance in securing application for business permits and licenses;

b.                Consistent support of the Provincial Government to maintain industrial peace and security;

c.                Assistance in securing direct source of electric power, water supply and telecommunication services;

d.                Assistance in the negotiation of special rates for industries with a minimum load of at least 1000 kilowatts;

e.                Assistance in site selection and negotiation for right of way;

f.                  Assistance in labor recruitment and arbitration; and

Other non-fiscal incentives as may be determined by the Board

In line with the province’s Medium-Term Development Plan, the Board promotes the development of small and medium-sized enterprises on account of their contribution to employment generation, countryside development and the cultivation of Filipino entrepreneurial spirit.

Section 25.       Corporate Social Responsibility

All enterprises registered to the Board are encouraged to undertake Corporate Social Responsibility (CSR) activities. The grant of the last year of their tax incentives shall be subject to submission of the proof thereof not later than the end of the 2nd year of incentives entitlement.

a.                Assistance in the preparation of simplified Project Proposal;

b.                Assistance in the product packaging and label design development;

c.                Assistance in product promotion and market matching; and

d.                Entrepreneurial assistance to OFWs who intend to engage in SME.

a.         Assistance in the preparation of simplified Project Proposal;

b.         Assistance in the product packaging and label design development;

c.         Assistance in product promotion and market matching; and

d.         Entrepreneurial assistance to OFWs who intend to engage in business.

Section 21.Provincial Investment Promotion Fund

            There shall be allocated a Provincial Investment Promotion Fund which shall be equivalent to 10% of the 20% Development Fund of the Provincial Government as provided for under Section 287 Chapter 1, Title 3, Book II, R.A. 7160.  Said fund shall be used for investment development and promotional activities of the province which shall be determined by the PIIB including the preparation of investment promotional collaterals, conduct of business conference or a Trade and Investment Mission both local and foreign, and maintenance of Provincial Investment Promotion Office, subject to the usual accounting and auditing rules and regulations.

Section 27.Provincial Investment Promotion Fund

There shall be allocated Five Million Pesos (Php 5 Million) Provincial Investment Promotion Fund which shall be sourced from the General Fund. Thereafter, the Provincial Government shall appropriate annually, based on the budget presented by the Board, the necessary funding requirements for the continued implementation of these provisions.   Said fund shall be used for investment development and promotional activities of the province which shall be determined by the Board including the preparation of investment promotional collaterals, conduct of business conference or a Trade and Investment Mission both local and foreign, and maintenance of Provincial Investment Promotion Division, subject to the usual accounting and auditing rules and regulations.

Section 22. Exception

This Ordinance shall not apply to financing or banking institutions and other enterprises which are governed by the Central Banking Act and under the supervision of the BangkoSentralngPilipinas (BSP).

Section 28. Exception

This Ordinance shall not apply to financing or banking institutions and other enterprises which are governed by the Central Banking Act and under the supervision of the Bangko Sentral ng Pilipinas (BSP).

After the effe ctivity of this Ordinance, the Provincial Governor shall convene the Board to formulate and enact the Provincial Investment and Incentive Code and the corresponding Implementing Rules and Regulations necessary for the efficient and effective implementation of the Code.

The Provincial Investment Incentives Board (PIIB) shall conduct an annual inspection on the registered enterprises on their progress either by itself or by requesting a Local Government Agency to conduct the same, said inspection shall be limited to the total gross sales/receipts; compliance of the Minimum Wage Law; or to the provisions of the Ordinance or of these rules and the privileges granted as stated in the Certificate of Registration.

The Board shall conduct an annual inspection on the registered enterprises on their progress either by itself or by requesting a Local Government Agency to conduct the same. Said inspection shall be limited to the total gross sales/receipts; compliance to the Minimum Wage Law; or to the provisions of this Ordinance and the privileges granted as stated in the Certificate of Registration.

Violation of any provisions of this Ordinance and other pertinent laws shall forfeit the incentives and privileges granted the registered enterprise, and shall be required to pay all taxes and fees due from the start of its business operation, upon the recommendation of the Board. Violation of the provisions of this Ordinance shall be penalized with a fine of not less than One Thousand Pesos (P1, 000.00) but not more than Five Thousand Pesos (P5, 000.00) and or an imprisonment of not less than One (1) month but not more than six (6) months, or both such fine and imprisonment at the discretion of the court. In case, the violation is committed by a partnership, corporation, association, or cooperative, the Manager or President or Chief Executive Officer, as the case may be, shall suffer the penalty provided herein.

If for any reason, any section or other provisions of this Ordinance shall be held to be unconstitutional or invalid, no other section or provision hereof shall be affected hereby.

If for any reason, any section or other provisions of this Ordinance shall be held to be unconstitutional or invalid, no other section or provision hereof shall be affected hereby.

All Ordinances, Executive Orders and Rules and Regulations inconsistent or in conflict with the provisions of these Ordinance are hereby repealed, amended or modified accordingly.

All Ordinances, Executive Orders and Rules and Regulations inconsistent or in conflict with the provisions of these Ordinance are hereby repealed, amended or modified accordingly.

This Ordinance shall take effect immediately after its approval.

This Ordinance shall take effect immediately after its approval.

Serafin Q. Roman, Vice-Governor

Presiding Officer

Efren E. Pascual, Jr., Vice-Governor

Presiding Officer

[Signed]

Severino P. Salazar

Secretary to the SP

[Signed]

Severino P. Salazar

Secretary to the SP

[Signed]

Enrique T. Garcia, Jr.

Provincial Governor

[Signed]

Albert S. Garcia

Provincial Governor