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REPUBLIC OF THE PHILIPPINES

CITY OF ILOILO
OFFICE OF THE SANGGUNIANG PANLUNGSOD

EXCERPT FROM THE MINUTES OF THE 20rn REGULAR SESSION OF THE

SANGGUNIANG PANLUNGSOD OF THE CITY OF ILOILO, PHILIPPINES, HELD
AT THE SESSION HALL, 2ND FLOOR, ILOILO TERMINAL MARKET BUILDING,
ILOILO CITY, ON WEDNESDAY, JUNE 17, 2009

PRESENT:
HON. ERWIN J. PLAGATA
Acting Presiding Officer

HON. JULIENNE L. BARONDA

Temporary Presiding Officer

HON. EDUARDO L. PENAREDONDO, Floor Leader Member

HON. JOSE S. ESPINOSA, III, Assistant Floor Leader Member
HON. LYNDON V. ACAP Member
HON. ELDRID C. ANTIQUIERA Member
HON. ELY A. ESTANTE, JR. Member
HON. JEFFREY P. GANZON Member
HON. JOHN MELCHOR L. MABILOG, Pres., SK Federation Ex-Officio Member
HON. MA. IRENE D. ONG, Pres., Liga ng mga Barangay Ex-Officio Member
HON. ARMAND S. PARCON Member
HON. ANTONIO V. PESINA, JR. Member
HON. NIELEX C. TUPAS Member
HON. PERLAS. ZULUETA Member

ABSENT:

HON. JED PATRICK E. MABILOG (Officer-in-Charge, Presiding Officer

Office of the Mayor)

REGULATION ORDINANCE NO. 2009-256

AN ORDINANCE AMENDING REGULATION ORDINANCE NO.
2006-114, AS AMENDED BY REGULATION ORDINANCE NO.
2006-118, ENTITLED "THE ILOILO CITY INVESTMENT
INCENTIVES CODE OF 2006"

Sponsored by Councilor Jose S. Espinosa III

And seconded by Councilors Ely A. Estante, Jr. and Lyndon V. Acap

WHEREAS, last January 30, 2009 the Hon. Jerry P. Trenas, City Mayor oflloilo
City signed Executive Order no. 5, Series of 2009. "An Order Creating a Committee that
will Study and Review Existing Incentives Ordinances of the City of Iloilo";

NOW THEREFORE, be it ordained that:

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Page 2, Regulation Ordinance No. 2009-256. 17 June 2009

CHAPTER I
TITLE AND DECLARATION OF POLICY

Section 1 - Title.

This Ordinance shall be known as "The Expanded Iloilo City Investment

Incentives Ordinance of 2006, as amended.

Section 2 - Declaration of Policies.

It is the policy of the City of Iloilo to attract and promote domestic and foreign
investments in identified priority areas of economy; to provide significant employment
opportunities to local residents; to increase the productivity and improve utilization of the
city's resources; to improve the technical skills of the people employed in the enterprises;
and to create an environment conducive for the start up growth and expansion of
business.

The City shall grant fiscal and non-fiscal incentives to persons or entities whose
businesses significantly support the above-stated policies.

CHAPTER II
DEFINITION OF TERMS

Section 3- Definition of Terms. For purposes of this Ordinance the following

definitions shall apply:

a) The Board shall refer to the Iloilo City Investment Incentives Board (ICIIB)
created under this Ordinance.
b) Bonafide Resident shall refer to a person who has resided continuously for at
least six (6) months in the City of Iloilo prior to his/her employment with the
applicant's enterprise.
c) City shall mean the City of Iloilo covering all areas within its territorial
jurisdiction as provided for by law and its charter.
d) Employment shall refer to the hiring of individuals by the applicant's
enterprise.
e) Existing Business Enterprises shall refer to those licensed businesses which
are in operation within the City of Iloilo.
f) Expansion of the Business/Enterprise shall refer to existing business which
will increase its capitalization and manpower requirements on a different
address, site or location than that already in existence and has not availed of
herein incentives. This expansion shall be considered a new business within
the purview of this ordinance.
g) Investment Amount shall include working capital requirements, fixed assets
and pre-opening expenses but to exclude cost of land. For expansion projects,
only the incremental or additional investments necessary to operate the
expansion shall be considered in determining the total amount of investment.
Page 3. Regulation Ordinance No. 2009-256, 17 June 2009

h) New Business/Enterprises shall refer to those businesses which are not yet in
operation prior to the approval of this Ordinance. A business enterprise shall
not be considered as new when the dwnership of said business already
existing and operating under license or permit changes in form, or from single
proprietorship to partnership or corporation, or from one corporation to
another corporation under the same controlling interest, when the same
business is carried under a new name and style, or the business is transferred
to a different owner but is continued or carried on partly or in its entirety.
i) Ordinance shall refer to the Expanded Iloilo City Investment Incentives
Ordinance of 2006, as amended.
j) Registered Business/Enterprise shall refer to any business/enterprise that have
qualified and have been issued a Certificate of Registration to avail of
incentives under this Ordinance.

CHAPTER III
INVESTMENT INCENTIVES BOARD

Section 4 - The Iloilo City Investment Incentives Board (ICIIB).

There is hereby created the Iloilo City Investment Incentives Board (ICllB) to
implement the provisions of this Ordinance.

Section 5 - Composition of the Board.

The Board shall be composed of the following:

Chairperson: City Mayor or his duly designated person

Vice Chairperson: Chairperson, Iloilo Business Club

Members:

1. Three representatives of the Sangguniang Panlungsod

a. Chairperson, SP Committee on Trade and Industry
b. Chairperson, SP Committee on Tourism, Culture and Historical
Affairs
c. Chairperson. SP Committee on Ways and Means
2. Office of the City Mayor, (Executive Assistant for Economic Promotions)
3. City Treasurer
4. City Planning and Development Coordinator
5. City Legal Officer
6. City Assessor
7. Provincial Director, DTI-Iloilo
8. Regional Director, DOLE-Region VI
9. President, Filipino-Chinese Chamber of Commerce of Iloilo, Inc.
10. President, Chamber of Commerce and Industry of Iloilo, Inc.
11. President, Banker's Association of lloilo
12. President, Philippine Retailers Association- Iloilo Chapter
13. President, lloilo Hotels, Resorts and Restaurants Association
14. President, Federation of Filipino- Chinese Chamber of Commerce of Panay,
Inc.
15. President. Iloilo City Realty Board.

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Page 4. Regulation Ordinance No. 2009-256. 17 June 2009

A member of the Board shall designate a permanent alternate in his/her behalf. The
membership of the Board may be changed through an amendment of this Ordinance by
the Sangguniang Panlungsod at its option or upon the recommendation of the Board.

Section 6 - Meeting of the Board

The Board shall meet at least once every quarter or as deemed necessary, at such
day and time as it may fix. The presence of the majority of all the members shall
constitute a quorum.

Section 7 - Powers and Functions of the Board

The Board shall establish policies and guidelines which will encourage domestic
and foreign investments and business activities consistent with the development needs of
the City. Pursuant thereto, the Board is vested with the following powers and functions:

a) To promulgate rules, regulations and guidelines for the implementation of

this Ordinance;
b) To receive, evaluate and approve all applications for incentives under this
Ordinance;
c) To identify, update or amend the Investment Priority Areas (IPA);
d) To adopt an investment program, which shall list the priority investment
areas/ activities and prescribe the corresponding incentives and support
measures; and
e) To review the package of appropriate incentives and support measures and
recommend amendments to the Sanggunian Panlungsod;

The City Planning and Development Office shall act as the Secretariat of the Board.

Section 8- Executive Committee

There shall be an Executive Committee that shall meet from time to time
and shall consider applications and recommend the same to the Board for its
consideration.

The Executive Committee shall be composed of the following:

1. Chairperson, Iloilo City Investment Incentives Board

2. City Planning and Development Coordinator
3. City Treasurer
4. Executive Assistant for Economic and Promotions
5. City Legal Officer or his Representative
6. Chairman or Representative of the Iloilo Business CIUb
7. President or Representative of the Filipino Chinese Chamber of
Commerce of Iloilo, Inc.
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Page 5, Regulation Ordinance No. 2009-256, 17 June 2009

CHAPTER IV
INVESTMENT PRIORITY AREAS

Section 9- lnvestment Priority Areas (IPA)

The following are the Investment Priority Areas:

a.) Manufacturing and processing enterprises

b.) Export-oriented industries
c.) Tourism-oriented industries
d.) Utility companies engaged in power generation and distribution, water,
transportation, transportation support facilities and those of similar
nature.
e.) Information and Communication Technology Enterprises
f.) Agro-Fishery
g.) Social Services and Facilities
1. Health Care Service
2. Educational Institution
3. Low-Cost Housing
4. Sports and Recreation
h.) Commercial and Industrial Buildings
i.) Solid Waste Disposal System

The Board may consider applications under this Ordinance other than the above
stated Investment Priorities Areas by 2/3 votes of all its members.

CHAPTERV
REGISTRATION OF ENTERPRISES

Section 10 - Qualifications of New Business/Enterprise.

New business/enterprise which intends to register and avail of the incentives
provided in the Ordinance must meet the following qualifications:

a) The place of operation or production will be located within the City of Iloilo.
This includes the opening of a branch within Iloilo City by an enterprise
conducting business outside the City.
b) Engaged or will engage in business as provided for in Section 9 hereof.
c) The actual investment is at least Five Million (Php 5,000,000.00) which shall
be based on the total project cost approved by the Board; and
d) Must provide employment to bonafide residents oflloilo City, of not less
than:

.lQ_for investment worth P5 Million but less than 20 Million

20 for investment worth P20 Million but less than 40 Million
40 for investment worth P40 Million but less than 60 Million
60 for investment worth P 60 Million and above

Provided, however, that the applicant may apply for exemption on the
number of employees as required by this Ordinance and the Board may decide on
the matter on a case to case basis.
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Page 6, Regulation Ordinance No. 2009-256, 17 June 2009

Section 11- Qualifications of Existing Business /Enterprise.

An existing business/enterprise which intends to register and avail of the

incentives under this Ordinance, must meet the following qualifications:

a.) The place of operation of existing business/enterprise is already within

the City and will expand its operations by an additional investment of
at least Five Million Pesos (Php 5,000.000.00);

b) Must hire additional employees who are bonafide residents of Iloilo

City of not less than:

1.Q_for investment worth P5 Million but less than 20 Million

20 for investment worth P20 Million but less than 40 Million
40 for investment worth P40 Million but less than 60 Million
60 for investment worth P60 Million and above

c) The prospective business /enterprise has complied with all applicable

laws; and
d) The business/enterprise must engage in activities mentioned in Section
9 hereof.

Provided. however, that the applicant may apply for exemption on the
number of employees as required by this Ordinance and the Board may decide on
the matter on a case to case basis.

Section 12- Requirements.

Investor/enterprise qualified under Sections 10 and 11 of this Ordinance must

file the application not later than sixty (60) days from the start of its commercial
operations. The application shall be considered officially accepted upon payment
of fees and submission of the following:

a) Three sets of the following documents:

1) Duly filled-up and notarized application form to be provided by the

Board in accordance with the provisions of this Ordinance;
2) Certified true copy of applicant's Certificate of Registration with
the Securities and Exchange Commission, Department of Trade
and Industry and other concerned government licensing agency, as
may be applicable;
3) Secretary's Certificate of the Board's resolution authorizing the
applicant and the designation of the representative to sign
documents and transact business with the Board, if applicable; and
4) For existing enterprise, an audited financial statement and income
tax return. of the previous year.

b) Payment of non-refundable filing fee of One Thousand Pesos (Php 1,000.00)

for each application.
 Page 7. Regulation Ordinance No. 2009-256. 17 June 2009

Section 13-Approval

The Board shall act on applications within thirty (30) working days from the
receipt of the recommendation of the Executive Committee, otherwise the same is
deemed approved.

Section 14 -Issuance of Certificate of Registration

An Enterprise/Investor whose application was approved under this Ordinance

shall be issued a Certificate of Registration duly signed by the City Mayor.

The Certificate of Registration shall be issued upon payment of a one time non-
refundable registration fee in the following amount:

a) P2,000.00 for investment or total project cost of P 5 Million but less than
PIO Million
b) PS,000.00 for investment or total project cost of P 10 Million but less than
P 20 Million
c) Pl0,000.00 for investment or total project cost of P 20 Million but less
than P 30 Million
d) P15,000.00 for investment or total project cost of P30 Million but less
than P 40 Million
e) P25,000.00 for investment or total project cost of P 40 Million but less
than P 60 Million
f) P40,000.00 for investment or total project cost of P 60 Million and above

CHAPTER VI
INCENTIVES TO REGISTERED ENTERPRISES

Section 15- Period of Availment

A registered enterprise shall enjoy the fiscal incentives provided herein for a fixed
period corresponding to the actual amount of investment put up by the
investor/enterprises under the following brackets:

INVESTMENT INCENTIVE PERIOD

P 5 Million but less than P20 million One Year

P 20 Million but less than P40 million Two Years
P 40 Million but less than 60 Million Three Years
P 60 Million and above Four Years

Section 16 -Reduction of Business Taxes

A registered enterprise under this Ordinance shall enjoy a reduction of business

taxes based on gross sales/receipts or realized during the preceding calendar year, to wit:

ti
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Page 8, Regulation Ordinance No. 2009-256. 17 June 2009

a) New and Expanded Entemrises:

Year of Operation % of Reduction

First Year 100
Second Year 75
Third Year 50
Fourth Year ~

Section 17- Non- Fiscal Incentives.

A registered enterprise shall be entitled to the following non-fiscal incentives

which include but not limited to:

a) Assistance in securing additional business permits and other related data;

b) Facilitating access to financial and technical assistance programs of the
government; and
c) Facilitating service connections with local utilities and other services as
maybe recommended by the Executive Committee.

CHAPTER VII
FINAL PROVISIONS

Section 18- Interpretation.

All disputes pertaining to the interpretation and implementation of this Ordinance

shall be resolved in favor of the City of Iloilo.

Section 19- Judicial Relief.

All orders or decisions of the Board in cases involving the provisions of this
Ordinance shall immediately be final and executory.

Section 20- Separability Clause.

The provisions of this Ordinance are declared separable. The invalidity of one or
more provisions shall not affect the validity of the other provisions thereof.

Section 21 -Repealing Clause.

All Ordinances, Executive Orders, lmplemehting Rules and Regulations and all
issuances inconsistent hereof are hereby repealed or modified accordingly.

Section 22 -Effectivity.

This Ordinance shall take effect fifteen (15) days after its publication in a
newspaper of local circulation.

ENACTED, 17 June 2009. (With one (1) qualified objection: Councilor

Antonio V. Pesina, specifically, on the grant of 100% reduction of business taxes based
on gross sales/receipts for the first year of operation of new and expanded enterprises)
Page 9, Regulation Ordinance No. 2009-256. 17 June 2009

I hereby certify to the correctness of the above quoted regulation ordinance.

UTH H. ARROYO
tary to the Sanggunian

ATTESTED AND CERTIFIED

TO BE DULY ENACTED:

Presiding Officer

/rer