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Provincial Investment Incentive Ordinance of Bulacan

Ordinance No. 99-03
(Enacted by Resolution No. 99-174)

An Ordinance Enacting the Provincial Investment Ordinance of 1999 and for Other Purposes
Be it ordained by the Sangguniang Panlalawigan, Province of Bulacan, that:
 
Chapter I: Title and Declaration of Policy

Section 1. Title
 This ordinance shall be known as the "Provincial Investment Incentive Ordinance of Bulacan."

Section 2. Declaration of Policy
 It is the policy of the Provincial Government of Bulacan to catalyze the wholistic development of its constituents through programs designed to enhance the socio-economic life of every Bulakeņo. Critical to the realization of an image for Bulacan as a haven for productive investments and businesses that would spur sustainable industrialization and expand livelihood opportunities. To this end, the provincial government shall endeavor to rationalize the systems and processes of investment accreditation and intensify promotional and business development activities that would magnify the viability of the province as the country's Investment Capital. Thus, the government will forge partnerships with both foreign and domestic institutions that would be instrumental in strengthening the economic potential of every household through the creation of employment, promotion of consumer interest, and transfer of relevant technologies in agriculture, industry and support services.
 
Chapter II: Bulacan Investment Incentive Board (BIIB)

Section 3. The Bulacan Investment Incentive Board
For the purpose of recommending policies and implementing the provisions of this Ordinance, a Bulacan Investment Incentive Board (BIIB) is hereby created.

Section 4. Composition of the Board
The Board shall be composed of the following:
Chairman - The Provincial Governor

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

Members:
  • Chairman, Committee on Trade and Industry, Sangguniang Panlalawigan
  • Representative from the Department of Trade and Industry, Bulacan Provincial Office
  • Representative of duly accredited NGO
  • President or the duly elected representative of the Bulacan Bankers Association
  • Federation Chairman or duly elected Representative of the People's Economic Council
  • President, Tourism Council of Bulacan
Ex-Officio Members:
  • Municipal Mayors
  • Representative from the Department of Agriculture
  • Representative from the Department of Environment and Natural Resources
  • Representative from the Department of Agrarian Reform
  • Provincial Budget Officer
  • Provincial Treasurer
Section 5. Creation of the Business Assistance and Promotions Division
There shall be created a Business Assistance and Promotion Division (BAPD) under the Office of the Governor, consisting of Division head, two (2) Project Development Officers (PDO's) and one (1) Project Development Assistant who shall serve as liason and Technical Secretariat of the BIIB and shall assist the Board in the delivery of its functions. The BAPD will be tasked to provide effective and prompt assistance to investors who wish to establish business in the province and to respond to general inquiries on investment opportunities, incentives, rules and regulations, and provide other related information. The BAPD in coordination with the Department of Trade and Industry, Bulacan Provincial Office, and national and local agencies, shall upon authority of the Board draw some plans and programs and initiate investment promotion activities for the province.

Section 6. Powers and Functions of the Board
The BIIB is tasked mainly to come up with a favorable and stable policy on establishing business climate in the province which will encourage and support investment and business operations consistent with the development needs of Bulacan. It is vested with the following powers and functions:
  1. To screen, evaluate, accept, approve or disapprove applications for registration for the availment of these investment incentives and to issue Certificate of Registration;
  2. To accept all applications and be acted upon within 30 days upon receipt thereof;
  3. The Board is empowered to conduct hearings on issues concerning violations committed against any provision of these rules;
  4. To enter into agreements with other government agencies and/or private organizations for the purpose of simplifying systems, procedures and requirements in establishing new investments in Bulacan;
  5. The Chairman, or any 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 needs arises;
  6. To conduct short and medium-term investment promotional activities such as Trade and Investment Missions, Business Conferences/Fora and other related activities to attract targeted investors and generate employment;
  7. To designate the Business Assistance and Promotions Division to serve as the technical secretariat for the implementation of the provisions of the ordinance.
Section 7. Powers and Functions of the Chairman
The Chairman shall have the following powers and duties:
  1. To confirm the mandated members of the BIIB from the Vice-Chairman down to members except for the ex-officio members;
  2. To preside over the regular and special meetings of the Board;
  3. To render annual reports to the province of Bulacan and such special reports as may be requested;
  4. To recommend to the Board such policies and support measures that may be deemed necessary to carry out the objectives of the Ordinance.
  5. Generally, to exercise such other powers and perform such other duties as may be authorized by the Board, from time to time.
Section 8. Powers and Functions of the Vice-Chairman
The Vice-Chairman shall have the following powers and duties;
  1. To preside over the regular and special meetings of the Board in the absence of the Chairman;
  2. 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.
 
Chapter III: Definition of Terms

Section 9. As used in this Ordinance
  1. "Board" shall mean the Bulacan Investment Incentive Board (BIIB);
  2. "Ordinance" shall refer to the Provincial Investment Incentive Ordinance;
  3. "New Enterprise" shall refer to those prospective enterprises who have not engage in any type of business in the province and is interested in establishing its places of operation or production in the province;
  4. "Capitalization" shall mean the total or initial investment in a business that has been paid-in a corporation, cooperative or partnership or invested in a single proprietorship, which may be in cash or in property;
  5. "Existing Enterprise" shall refer to those business enterprises whose places of operation or production are already within the territorial jurisdiction of the Province of Bulacan;
  6. "Registered Enterprises" shall refer to those enterprise/establishment registered in accordance with the provisions of this ordinance.
  7. "Fruit Bearing Plantation" shall mean an estate or farm on which a fruit bearing trees or crops are cultivated in not less 10 hectares with a density of 100 trees per hectare.
  8. "Commercial Tree Plantation" shall mean an industrial tree farm or agro-forestry projects on which trees are planted in not less than 10 hectares with a density of 10,000 trees per hectare;
  9. "Tax" shall refer to the monetary contribution levied by the law making body;
  10. "Amusement" shall mean places of entertainment and relaxation as enumerated in the identified investment priority areas;
  11. "Investment Priority Areas" shall mean the economic activities that the LGUs, private and government sectors have identified as stated in the Investment Development Plan of the Province.
 
Chapter IV: Investment Development Plan

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 Sangguniang Panlalawigan for evaluation and approval.

Section 11. Coverage
Business enterprises having the following type of nature of business shall be given priority under this ordinance:
  1. Labor Generating Enterprises;
  2. Enterprise to be established in identified growth sub-center in the province in accordance with the approved provincial physical framework plan;
  3. Manufacturing enterprises using indigenous materials;
  4. Electronics Enterprises;
  5. Tourism Oriented Enterprises;
  6. Pioneering Enterprises;
  7. Service Oriented Enterprises;
  8. Water and Power Resources Development Enterprises;
  9. Telecommunications Development Enterprises;
  10. Agri-Business Enterprises.
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 the 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 have already been legally vested in the registered enterprises which shall continue to enjoy such rights to the 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.
 
Chapter V: Registration of Enterprises

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 qualification:
  1. Must be qualified to do business and must have complied with all the requirements mandated under the local and existing national laws and the constitutions;
  2. If single proprietorship, partnership or corporation, association and cooperative, it shall be duly registered with the 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;
  3. Must have an initial investment of not less than P 50 million;
  4. Must be engaged in business activities as stated in the investment priority areas.
Section 14. Qualifications of Existing Enterprise
Any existing enterprise may benefit from the incentives provided that they meet the following qualifications:
  1. That the existing enterprise whose place of operation or production is already situated within the territorial jurisdiction of the Province of Bulacan;
  2. Must have complied with all the requirements mandated by existing local and national laws;
  3. That the business falls under any of the activities mentioned in Chapter IV Section 11 hereof or in the investment priority areas;
  4. 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;
  5. Must have an additional investment of not less than P50M.
Section 15. Application, Approval and Registration Procedures
Applications shall be filed with the BAPD, recorded in a registration book and date appearing herein and stamped on the application 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 (P 5,000.00) to the Board together with the following documents for registration and the same be renewed every 5 years of its operation:
  1. 4 copies of completed application form to be provided by the Board;
  2. Copy of its Article of Incorporation and By-Laws as approved by the Security and Exchange Commission, the Board of Investment and the Department of Trade and Industry, as the case may be;
  3. Resolutions of the applicant's Board of Directors in case of corporation, authorizing the filing of application.
Upon approval/acceptance, any applicant shall also be required to pay to the Board a non-refundable registration fee of 1/10 of 1% of the amount of investment.

Section 16. Certificate of Registration
The Board shall issue a Certificate of Registration to the business concerned as registered enterprise duly stating the incentives and privileges granted under provisions of this ordinance.
 
Chapter VI: Incentives

Section 17. Incentives to Registered and Existing Enterprises
Under this Ordinance, all registered enterprises with a capitalization of not less than P50 M and an existing enterprise with an additional capitalization of P50 M and above shall be granted the following incentives:
  1. Full exemption from payments of permits such as Mayor's permit, business, building, sanitary, electrical, occupancy and locational clearance for three (3) years;
  2. Exemption from payment of business tax for a period of three (3) years;
  3. Exemption from payment of Real Property Tax for three (3) years;
  4. Exemption from Tax on Transfer of Real Property Ownership for three (3) years;
  5. Exemption from Franchise Tax for two (2) years;
    6. f.) Exemption from Amusement Tax for three (3) years; g.) Exemption from Land Tax for fifteen (15) for Commercial Tree Plantation; h.) 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.
 
Chapter VII: Appropriations

Section 18. Provincial Investment Promotion Fund
There shall be allocated a Two Million Peso (P2M) Provincial Investment Promotion Fund which shall be sourced from the 20% Development Funds of the Provincial Government. 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 as determined by the BIIB including the preparation of investment promotional collaterals, conduct of Business Conference/Fora and Trade and Investment Mission both local and foreign, and maintenance of Business and Promotions Division subject to the usual accounting and auditing rules and regulation.
 
Chapter VIII: Final Provisions

Section 19. 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).

Section 20. Formulation of Provincial Investment Code and Implementing Rules and Regulations
After the effectivity 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 Guidelines necessary for the efficient and effective implementation of the Code.

Section 21. Inspection
The Board is empowered and authorized to conduct inspection of the premises or examination of the business of the registered enterprises on their progress. This shall include the records and books of the enterprise's business operations, audited financial statements and total local incentives availed under the provincial ordinance.

Section 22. Penal Clause
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 Bulacan Investment Incentive 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.

Section 23. Separability Clause
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.

Section 24. Repealing Clause
All Ordinance, Executive Orders and rules and regulations inconsistent or in conflict with the provisions of this Ordinance are hereby repeated, amended or modified accordingly.

Section 25. Effectivity
This Ordinance shall take effect 90 days after approval.

Date Enacted: April 15, 1999
Date Approved: April 1999

[Signed]
Aurelio S. Plamenco, Vice-Governor
Presiding Officer

Attested:
[Signed]
Alicia Javier, Provincial Secretary

Approved:
[Signed]
Josefina M. dela Cruz, Provincial Governor
 
 
 
  
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