IRR Leyte Investment Code of 2004
IRR Leyte Investment Code of 2004
IRR Leyte Investment Code of 2004
RULE I
POLICY APPLICATION
Article 1. Title. – These Rules shall be known and cited as the Rules and
Regulations Implementing the Leyte Province Investment Code of 2004.
Article 4. Scope of Application. – These Rules shall apply to all persons, entities
or enterprises, government and non-government organizations and instrumentalities to
the extent provided in the Code.
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RULE II
OBJECTIVES
(a) To encourage Filipino and foreign investments or joint venture tie-up in projects
to develop agricultural, agro-industrial, industrial and manufacturing industries
which will bring about greater economic stability, provide more opportunities for
employment, and raise the standard of living of the people;
(b) To welcome and encourage domestic and foreign investors to establish enterprises
that are capital intensive utilizing a substantial amount of human resource/labor
available in the province;
(c) To actively encourage and promote the optimum utilization of domestic raw
materials available in the Province without necessarily resulting to environmental/
ecological degradation;
(d) To provide fiscal and non-fiscal incentives to local and foreign investors and
encourage them to locate in Leyte Province;
(e) To develop markets for Leyte products in order to attain a rising level of production
and employment, hasten the economic development in the province of Leyte and
assure that the benefits of development accrue to the Filipino people, in general
and the Leyteños, in particular; and
RULE III
DEFINITION OF TERMS
Article 7. Definition of Terms. – For the purpose of these Rules and Regulations,
the following words or phrases shall mean as follows:
(a) “Committee” shall refer to the Leyte Province Investment Committee created
under this Code.
(b) “Code” shall refer to the Leyte Province Investment Code of 2004.
(c) “Province” shall mean the province of Leyte covering all the areas within its
territorial jurisdiction as provided for by law and its charter.
(d) “Rules” shall refer to the rules and regulations herein promulgated.
(f) “Local Personnel/Workers” shall refer to those workers or personnel who are
bonafide residents of the province of Leyte.
(g) “New investors/enterprises” shall refer to those prospective investors, who have
not fully or commercially operated its business in the province of Leyte and/or
establishing its places of operation or production in the said province.
(h) “Preferred areas of investment” shall mean the economic activities that are
agricultural, agro-industrial, agro-forestry and tourism-related.
(i) “Investment Priorities Plan” shall mean the overall plan formulated by the province
of Leyte and adopted by the Sangguniang Panlalawigan (SP).
(l) “Large Scale Enterprise” shall refer to industries with a capitalization of One
Hundred Million and One Pesos (P 100,000,001.00)
RULE IV
Members:
1. The Chairperson, Committee on Tourism, Trade and Internal Relations
of the Sangguniang Panlalawigan,
2. The Chairperson, Committee on Finance and Appropriations of the
Sangguniang Panlalawigan,
3. The Chairperson, Committee on Environment of the Sangguniang
Panlalawigan,
4. The Provincial Assessor,
5. The Provincial Legal Officer,
6. The Provincial Planning and Development Coordinator,
7. The Provincial Treasurer,
8. The Leyte Investment Promotion Officer,
9. The DTI Regional Director,
10. The Leyte Chamber of Commerce and Industry President, and
11. The Tacloban Banker’s Association President.
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Article 10. Meetings and Quorum of the Committee. – The Committee shall
meet once a year on a regular basis or as often as necessary if called upon by the
Chairperson. The presence of at least fifty percent (50%) plus one (1) of its members
shall constitute a quorum and the affirmative vote of the majority of the members present
in a meeting validly held shall be necessary for the Committee to exercise its powers and
perform its functions.
Article 11. Powers and Functions of the Committee. – The primary function of
the Committee shall be to establish a favorable and stable policy on business climate
which will encourage and support private sector investments and the operation of business
activities consistent with the development needs of Leyte Province.
The Committee shall also perform the following powers and functions:
(c) To come up with a short (1-2 years) and medium (3-5 years) term investment
promotions specifying investment priority areas;
(e) To source out additional budgetary requirement for the implementation of this
Code;
(f) To enter into an agreement with other government agencies and/or private
organizations facilitating and implementing systems, procedures, requirements
and facilitating investments, and other support services for the Leyte Investment
Promotions Program, subject to the confirmation of the Sangguniang
Panlalawigan; and
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(g) To perform such other functions as may be deemed necessary for the successful
implementation of this Code.
(a) To preside over the regular and special meetings of the Committee;
(b) To approve applications of qualified applicants in accordance with the rules and
regulations of this Code; and
(c) Generally, to exercise such other powers and perform such other duties as may
be necessary to carry out the objectives of this Code.
Article 13. Powers and Functions of the Vice Chairperson. - The Vice
Chairperson of the Committee shall have the following duties:
(a) To preside over the regular and special meetings of the Committee in the absence
of the Chairperson; and
(b) To perform such other duties of the Chairperson in the absence of the latter,
and such other duties as may be necessary to him by the Committee.
Article 14. The Leyte Investment Promotion Center. - It shall serve as the
technical secretariat of the Committee and shall take an active role in implementing the
Code. Specifically, the following are its functions:
(a) To accept, process and evaluate all applications for registration for the
availment of the local incentives and submit its recommendation to the
Committee within ten (10) working days from the receipt of the application;
(c) To establish and maintain networking relations with other offices and agencies
whenever appropriate and necessary;
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(d) To collate, analyze and compile pertinent data and information and studies
concerning areas that have been or may be declared as “Preferred Areas of
Investment” by the Committee;
(f) To prepare the agenda for meetings of the Committee and submit for its
consideration and approval policies and measures which are deemed
necessary to carry out the provisions of the Code; and
(g) To submit annual reports to the Committee through the Chairperson on the
activities of the Leyte Investment Promotion Center relative to the
implementation of this Code, within 60 days after the close of the calendar
year.
RULE V
Article 15. Preferred Areas of Investment. - The Committee shall determine the
preferred areas of investment taking into account those which will economically produce
goods for domestic use in substitution of goods being imported in large quantities and
thereby increase the value of agricultural, mining, and other products already being
produced or which will make products at cost low enough to be sold competitively in
either domestic or export markets.
(e) Agricultural and aqua-marine business activities especially those using upgraded
and modern technologies;
(a) The gaps between prospective demand and existing supply for specific products,
commodities and services and the additional production capacities that must be
induced, where such exist;
(b) The potential of such areas of investment for creating new markets , both
domestic and foreign, for domestic suppliers of raw materials/intermediate goods,
or new sources of supply for domestic consumers of the products;
(c) The potential of such areas of investment for creating productive employment,
considering the necessity for the dispersal of industries in the countryside on a
planned and balanced basis to the extent that is economically feasible and
practicable;
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(d) The extent to which investment in such areas will integrate existing production
facilities;
(g) The proportion of the required capital, raw materials and labor inputs of indigenous
origin;
(h) The comparative advantage they enjoy or could be made to enjoy; and
(i) The availability of local raw materials and manpower skills needed for said project.
The Committee shall give priority to projects with the highest rate of return favorable
to the local economy. No Projects shall be included in the investment priorities plan nor
declared as preferred areas of investment, unless shown to be economically, technically,
financially and ecologically sound after thorough investigation and analysis by the
Committee.
RULE VI
REGISTRATION OF ENTERPRISES
(a) That the business enterprise must have complied with all the requirements
mandated under existing local and national laws, rules and policies of the
government;
(b) That the prospective investor’s place of operation or production be located within
the territorial jurisdiction of the Province of Leyte;
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(c) That the prospective investors must engage in activities in preferred areas of
investment such as tourism, manufacturing, production, processing,
transportation, energy development, agro-industrial, agro-forestry
industry and agriculture;
(d) The new enterprise must have a capitalization of at least Five Million Pesos
(P5,000,000.00), provided that the amount of capitalization shall be based on
the total project cost as stated in the investor’s profile submitted to the Committee;
and
(e) That the enterprise will see to it that not less than twenty-five percent (25%) of
its total work force shall be bona-fide residents of the Province of Leyte.
(a) That the business enterprise must have complied with all new requirements
mandated under existing local and national laws, rules and policies of the
government;
(a) That the existing business enterprise must have a minimum capitalization of
Five Million Pesos (P5,000,000.00) representing the existing and expansion
capitalization; and
(d) That the existing enterprise whose place of operation or production is already
located within the territorial jurisdiction of the Province of Leyte, but will undertake
any of the following activities/projects:
(1) Relocation of its principal office from other places in the Philippines to Leyte;
or
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(3) Has not started the full operation of its planned expansion upon its appli-
cation.
(4) A certified true copy of its Certificate of Registration by the SEC, for
corporation, partnership, association and foundation, and its business Name
Registration by the Department of Trade and Industry and the Mayor’s Permit;
(a) Venue for Filing of Applications. - All applications shall be filed with the
Provincial Planning Development Office through the Leyte Investment
Promotion Center.
(c) Filing Fee. - A non-refundable filing fee shall be paid together with the required
documents for registration.
(d) Processing Time. - Application shall be acted upon by the Leyte Investment
Promotion Center within ten (10) working days from the official acceptance
thereof and by the Chairman of the Committee within the next 10 working days.
If and when the application is not acted upon within the stated period of a total
of twenty (20) working days, the application is deemed approved.
(a) Once an application is officially accepted, the project will be evaluated by the
Leyte Investment Promotion Center which may conduct ocular inspection at the
premises or examination of the business community.
b) If found not qualified, Leyte Investment Promotion Center shall inform the
applicant in writing.
c) If found qualified, the Leyte Investment Promotion Center forwards the application
to the Committee for its deliberation for the registration of the project or enterprise
or for the grant of incentives applied for.
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(d) The Chairperson of the Committee shall approve the application upon the
favorable recommendation of the Committee
(e) Tie Leyte Investment Promotion Center shall inform the applicant in writing the
decision of the Committee on its application.
(f) Once approved by the Chairperson, the Leyte Investment Promotion Center
within five (5) working days shall inform the applicant in writing and delivers the
Certificate of Registration. The LIPC then informs the Provincial Treasurer,
the Provincial Assessor, the Municipal Treasurer and the Municipal Assessor
where the business establishment is located, of such approval for their
information, guidance and appropriate action.
Article 22. Evaluation Criteria. – The following criteria shall be used in the
evaluation of application for registration under this Code:
(a) Capitalization. - The project must have a total project cost of at least Five
Million (P 5,000,000.00);
(b) Employment. - That the project shall employ bonafide residents of Leyte of not
less than 25% of its total work force;
(c) Compliance of all registration requirements mandated under existing local and
national laws;
(d) Location. - The operation of the project shall be located within Leyte Province;
and
(e) Registration with Philippine Economic Zone Authority (PEZA). - For projects
that will be located in PEZA approved areas, the same shall be duly registered
with PEZA.
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RULE VII
(b) Take the fullest possible accounts of the need of the investors for stability, growth
and profit in their operations in the formulation or modification of policies and
ordinances that will affect investments;
(c) Not interfere or modify arrangement with the investors on the implementation of
an investment project including ownership and management structure of the
enterprise unless the law provides otherwise;
(d) In accordance with law and where no local personnel or worker is capable and
available, allow the employment of qualified non-resident or foreign personnel
when necessary for the efficient operation of the enterprise or for technology
transfer;
(e) Resolve all doubts concerning the benefits and incentives granted under this
Code and ordinances enacted for the purpose of encouraging investments, in
favor of the investors; and
(f) Enter into a covenant with the labor force and DOLE to grant moratorium on
labor strikes and mass actions within a period of at least 10 years.
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(2) Change of Directors within thirty (30) calendar days from the change;
(3) Report on alien officers or employees within thirty (30) calendar days
from date of registration or from the appointment of such aliens/
replacements; Provided: that such alien/s are registered as such with
the Bureau of Immigration and Deportation (BID) and with the Department
of Labor and Employment (DOLE);
(6) Audited Financial Statements, within thirty (30) calendar days after its
submission to the Bureau of Internal Revenue (BIR); and
(b) Compliance with the Provisions of this Code. Any violation of the provision
of this Code shall be ground for cancellation or revocation of the registration of the
business and the withdrawal of incentives granted under this Code.
(1) Violation of the provisions of this Code and these Rules; and
(2) Failure to commence actual project development within one (1) year from
approval or registration.
RULE VIII
(b) Fiscal Incentives. - An enterprise registered under this Code shall be entitled to
the following fiscal incentives with consultation with the Local Government Units
(LGUs) within the territorial jurisdiction of the Province of Leyte.
(1) Full exemptions from fees and charges imposed under the existing Provincial
Tax Ordinance.
2) Business of Printing and Publication under Art. 225 of the IRR of Local
Government Code of 1991, as adopted under Provincial Tax Ordinance
1, Chapter 2, Article 2;
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3) Franchise Tax under Art. 226 of the IRR of Local Government Code of
1991, as adopted under Provincial Tax Ordinance 1, Chapter 2, Article
3;
4) Amusement Tax under Art. 229 of the IRR of Local Government Code of
1991, as adopted under Provincial Tax Ordinance 1, Chapter 2, Article
4.
(a) For those employing fifty percent to sixty nine percent (50% - 69%) of their
labor from qualified residents of the province:
(b) For those employing seventy percent (70%) or more of their labor from qualified
residents of the province:
The incentives mentioned in the preceding article are contingent upon the
commitment of the locator to hire local workers at the rate equal to or higher than the
prevailing minimum wage and other benefits in the region. The Provincial Government
of Leyte, upon the recommendation of the Leyte Investment Committee, shall grant
exemptions and incentives under the terms and conditions provided in this Code,
Article 27. Real Property Tax Holiday. - A 100% Real Property Tax Holiday shall
be enjoyed by abovementioned firms for one (1) year upon approval and five (5) years
from the start of the commercial operations.
Article 28. Exclusion. - This grant shall not apply to regulatory fees which are
levied under the police power of the Provincial Government. The grant of these exemptions
and incentives shall be governed further by the following factors:
(1) The grant to a type or kind of business shall apply to all businesses similarly
situated subject to the pertinent provisions of this Code.
(2) The exemption granted shall take effect only during the next calendar year
to a period not exceeding six (6) years thereafter.
(3) On shared revenues, the exemption shall extend only to the local government
unit granting such exemptions or relief unless the LGU concerned shall
extend the same privilege to such enterprise qualified under this Code.
(1) Tax incentives shall be granted only to new investment in the locality as well
as existing enterprises qualified under this Code.
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(2) The grant shall be based on the capitalization of the enterprise registered
under this Code, and in no case shall exceed six (6) fiscal years.
(3) Such grant to a type or kind of business shall apply to all similar businesses
qualified under this Code.
RULE IX
FINAL PROVISIONS
Article 29. Separability Clause. – If, for any reason, any portion or provision,
section or part of this Code is declared not valid by a Court of competent jurisdiction or
suspended or revoked by the Sangguniang Panlalawigan, such judgment shall not affect
or impair the remaining portions, provisions, sections, or parts thereof which shall remain
or continue to be in full force and effect.
Article 30. Repealing Clause. - All ordinances, rules and regulations, or part
thereof, in conflict with, or inconsistent with any provisions of this Code, are hereby
repealed, amended or modified accordingly.
Article 31. Effectivity Clause. - These Implementing Rules and Regulations (IRR)
shall take effect after its approval and publication by posting.
Approved unanimously.
CLARA S. LIM
Tacloban City Banker’s Association
President