AMENDED ILOILO PROVINCIAL INVESTMENT AND INCENTIVES CODE OF 2015

Resolution No. 2015-460 | Provincial Ordinance No. 2015-124

TABLE OF CONTENTS

Page

CHAPTER I. TITLE AND DECLARATION OF POLICY…………………………………7

SECTION 1. Title
SECTION 2. Declaration of Investment and Promotion Policy
SECTION 3. Scope and Coverage
SECTION 4. Rules on Interpretation

CHAPTER II.
OBJECTIVES……………………………………………………………………..9

SECTION 5. Objectives

CHAPTER III. SCOPE, NATURE AND PURPOSE…………………………………….9

SECTION 6. Scope, Nature and Purpose

CHAPTER IV. DEFINITION OF TERMS………………………………………………..10

SECTION 7. Definition of Terms

CHAPTER V. CREATION, COMPOSITION, MEETINGS, POWERS AND

FUNCTIONS OF THE ILOILO PROVINCIAL INVESTMENT PROMOTION
BOARD (IPIPB)……………………………………………………………………………..13

SECTION 8. Iloilo Provincial Investment Promotion Board

SECTION 9. Composition of the Board
SECTION 10. Term of Office
SECTION 11. Increase and Decrease of Membership
SECTION 12. Board Meetings and Quorum
SECTION 13. Power and Functions of the Board
SECTION 14. Honorarium
SECTION 15. Powers and Functions of the Chairperson
SECTION 16. Creation of the Local Economic Development &
Investment Promotion Center
SECTION 17. Powers and Functions of the LEDIP Center
SECTION 18. Local Economic Development & Investment Promotion
Center Services
SECTION 19. Visitorial Power of the Board and Center

CHAPTER VI. INVESTMENT PRIORITIES PLAN………………………………….....18

SECTION 20. Investment Priorities Plan

SECTION 21. Criteria in Determining Investment Priority Areas

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 AMENDED ILOILO PROVINCIAL INVESTMENT AND INCENTIVES CODE OF 2015
Resolution No. 2015-460 | Provincial Ordinance No. 2015-124

SECTION 22. Preferred Investment Areas

SECTION 23. Determination of Additional Investment Areas
SECTION 24. Review of Investment Incentives and Support
Measures

CHAPTER VII. QUALIFICATIONS OF ENTERPRISES…………………….....22

SECTION 25. Qualifications of New Investors/Enterprises

SECTION 26. Qualifications for Existing Enterprise
SECTION 27. Employment Preference for Ilonggo Residents
SECTION 28. Application and Registration Requirements
SECTION 29. Registration Procedures and Approval
SECTION 30. Certification of Registration
SECTION 31. Annual Registration Fees
SECTION 32. Rates for Succeeding Annual Availment Fees
SECTION 33. Remittance of Annual Availment Fees

CHAPTER VIII. PRIVILEGES OF REGISTERED ENTERPRISES…………….27

SECTION 34. Privileges Guaranteed by the Provincial

Government

CHAPTER IX. TAX EXEMPTION PRIVILEGES AND INCENTIVES……….28

SECTION 35. Tax Incentives for registered enterprises

SECTION 36. Non-fiscal Incentives
SECTION 37. General Guidelines
SECTION 38. Non-Transferability of Incentives

CHAPTER X. FUNDING………………………………………………….............30

SECTION 39. Appropriation

CHAPTER X. FINAL PROVISIONS……………………………………………...30

SECTION 40. Reporting

SECTION 41. Monitoring and Evaluation
SECTION 42. Penal Clause
SECTION 43. Separability Clause
SECTION 44. Effectivity

REPUBLIC OF THE PHILIPPINES

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 AMENDED ILOILO PROVINCIAL INVESTMENT AND INCENTIVES CODE OF 2015
Resolution No. 2015-460 | Provincial Ordinance No. 2015-124

PROVINCE OF ILOILO
ILOILO CITY

SANGGUNIANG PANLALAWIGAN

EXCERPTS FROM THE MINUTES OF THE 116th REGULAR SESSION OF THE 13th
SANGGUNIANG PANLALAWIGAN NG ILOILO HELD IN THE SESSION HALL OF THE
NEW ILOILO PROVINCIAL CAPITOL, BONIFACIO DRIVE, ILOILO CITY ON
NOVEMBER 23, 2021.

PRESENT:
Hon. Christine “Tingting” S. Garin,
Presiding Officer
Hon. Domingo B. Oso, Jr., Floor Leader
Hon. Renee L. Valencia, Member
Hon. Rolito C. Cajilig, Member
Hon. June S. Mondejar, Member
Hon. Matt P. Palabrica, Member
Hon. Jason R. Gonzales, Member
Hon. Rolando B. Distura, Member
Hon. Carol-V S. Espinosa-Diaz, Member
Hon. Nielito C. Tupas, Member
Hon. Ramon G. Sullano, Member (President,PCL)
Hon. Ma. Angelica Bianca B. Requinto, Member (President, PPSK)

ON OFFICIAL BUSINESS:
Hon. Marcelo Valentine S. Serag, Member
Hon. Dorothy G. Paes, Member (Pres., Liga ng mga
Brgy.)

RESOLUTION NO. 2021-656

RESOLUTION EMBODYING PROVINCIAL ORDINANCE NO. 2021-259, AN

ORDINANCE AMENDING PERTINENT PROVISIONS OF PROVINCIAL
ORDINANCE NO. 2015-124, OTHERWISE KNOWN AS THE ‘AMENDED ILOILO
PROVINCIAL INVESTMENT AND INCENTIVES CODE OF 2015’

Authored and sponsored by: Hon. Jason R. Gonzales

WHEREAS, Iloilo Provincial Investment and Incentives Code of 2015 has

been enacted and amended to position Iloilo Province as an investment
destination specifically for big-scale investment;

WHEREAS, as provided in Executive Order No. 048, Series of 2019, the

Iloilo Provincial Government is at the forefront of promoting, strengthening and
encouraging growth and development of industries and relevant economic
activities in the productive sectors of the province particularly in agri-business,

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Resolution No. 2015-460 | Provincial Ordinance No. 2015-124

tourism and tourism oriented enterprises, manufacturing, property

development, information and communications technology or business
processing outsourcing, services and other service-oriented enterprises;

WHEREAS, with the changing economic and industrial landscape of

the province, the Iloilo Provincial Investment Promotion Board has convened
and conducted focus group discussion to introduce and come up with
amendments to the Investment and Incentives Code of 2015. The primary
purpose of amending the said Code is to address current economic demands
and to be more responsive to relevant economic activities in the productive
sectors of the province;

WHEREAS, the said Ordinance is valid pursuant to Sections 1 and 2,

Article X (Local Government) of the 1987 Constitution and Section 109
(Functions of Local Development Councils) of Republic Act 7160 or the Local
Government Code;

BE IT RESOLVED, as it is hereby Resolved, by the 13th Sangguniang

Panlalawigan ng Iloilo to enact the following Provincial Ordinance:

PROVINCIAL ORDINANCE NO. 2021-259

AN ORDINANCE AMENDING PERTINENT PROVISIONS OF

PROVINCIAL ORDINANCE NO. 2015-124, OTHERWISE KNOWN AS THE
‘AMENDED ILOILO PROVINCIAL INVESTMENT AND INCENTIVES CODE
OF 2015’

CHAPTER I. TITLE AND DECLARATION OF POLICY

SECTION 1. Title. This ordinance shall be known and cited as the Iloilo
Provincial Investments Promotion Code of 2011 and further
amended as the Iloilo Provincial Investment and Incentives Code
of 2015.

SECTION 2. Declaration of Investment and Promotion Policy. It is hereby

declared as a policy of the Provincial Government to promote,
strengthen and encourage growth and development of industries
and relevant economic activities in the productive sectors of the
province particularly in agri-business, tourism and tourism
oriented enterprises, manufacturing, property development,
information and communications technology or business process
outsourcing, services and other service-oriented enterprises. To
this end, the Provincial Government of Iloilo shall endeavor to spur
the growth and development of various industries and support
services through sound economic policies, laws, ordinances
throughout the Province thereby attaining countryside economic

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stability and growth of the Province of Iloilo. Along this line, the
following are the policies of the province:

a. To encourage local and foreign investment or joint venture

that would utilize local labor, substantial amount of
indigenous raw material and other natural resources of the
province within the context of sustainable environment and
natural resources management;

b. To attract and encourage investments in priority areas that

significantly expand livelihood, employment opportunities
and enhance economic value of products, promote the
welfare of Provincial consumers and transfer relevant
technologies in agri-business, tourism and tourism oriented
enterprises, manufacturing, property development,
information and communications technology and other
service-oriented enterprises.

c. To promote the Province of Iloilo as a favorable investment

destination with available skilled manpower, adequate
power supply, adequate road infrastructure, adequate water
resources and communication facilities easily accessible to
the global market;

d. To promote active participation of the private sector and

non-government organization as partners and catalysts in
achieving the development goals of the province.

e. To be able to sustain investment in the Province, ensure the

proper implementation and assure investors of peace and
order to uplift the economic condition of the Ilonggos.

SECTION 3. Scope and Coverage. This Code shall apply to all men and women,
entities or enterprises, belonging to micro, small, medium and large-
scale categories in preferred areas of investment in agri-business,
tourism and tourism oriented enterprises, manufacturing, property
development, information and communications technology, other
service-oriented enterprises and other areas of investments as may be
determined from time to time by the Board.

SECTION 4. Rules on Interpretation. Any conflict or controversy arising under

the Code shall be resolved on the basis of applicable legal provisions
or jurisprudence and liberally construed to carry out the objectives of
this Code.

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CHAPTER II. OBJECTIVES

SECTION 5. In pursuance of the policy stated in Section 2 hereof, the following

shall be the objectives of this Code:

a. To encourage Filipino and foreign investments or joint

venture/Public Private Partnerships tie-up in projects to develop
agri-business, tourism and tourism oriented enterprises,
manufacturing, property development, information and
communications technology and other service-oriented
enterprises which will bring about greater economic growth,
provide more opportunities for employment and raise the
standard of living of Ilonggo men and women;

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 the Province of Iloilo;

e. To develop markets for Iloilo products in order to attain a rising

level of production and employment, hasten the economic
development in the Province of Iloilo and assure that the benefits
of development accrue to the Filipino men and women in general,
and the Ilonggo men and women in particular; and

f. To accelerate the development of agriculture, fisheries, tourism

and industrial sectors by dispensing productive employment and
income opportunities in the countryside aimed at attaining self-
sufficiency in basic commodities and raw materials as well as
increasing production of crops and other products.

CHAPTER III. SCOPE, NATURE AND PURPOSE

SECTION 6. Scope, Nature and Purpose. This Code applies to all direct
investments in the Province, including local and foreign; and resident
and non-resident, but excluding portfolio investments.

Moreover, this Code shall be consistent with the standards set by the
existing 1987 Philippine Omnibus Investment Code and regulations of
the Department of Trade and Industry (DTI) and the Department of

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Tourism (DOT), and shall be in conformity with the 1991 Foreign

Investment Act, Retail Trade Liberization Act of 2000, the Special
Economic Act of 1995 (R.A. No. 7916), the Tourism Act of 2009 (R.A. No.
9593), the Magna Carta for Small, Medium Enterprises – MSMEs (R.A.
No. 6977 as amended by R.A. No. 8289 and further ameded by R.A. No.
9501), and other related laws.

CHAPTER IV. DEFINITION OF TERMS

SECTION 7. Definition of Terms. When used in this Code, the following words
or phrases shall mean as follows:

a. Academe shall refer to colleges and universities situated with the

Province of Iloilo.

b. Agri-business shall refer to a business that earns most or all of its

revenues from agriculture devoted to the production, processing,
and distribution of food and by-products.

c. Board shall refer to the Iloilo Provincial Investment Promotion

Board (IPIPB);

d. Capitalization shall mean the paid-up capitalization of a

corporation, cooperative, or association or such amount invested
in a single proprietorship or partnership which may be in cash or
in property as allowed by law;

e. Code shall refer to the Iloilo Provincial Investments Promotion

Code of 2011 and further amended as the Iloilo Provincial
Investment and Incentives Code of 2015;

f. Creation of linkages or inclusion of corporate social responsibility

shall refer to investments that consider contribution of the
enterprise to the economic and social well-being of the local
community.

g. Environmental management plan is a site-specific plan developed

to ensure that all necessary measures are identified and
implemented in order to protect the environment and comply with
environmental legislation.

h. Existing enterprises shall refer to those establishments or

enterprises whose present place of operation or production is
physically located within the territorial jurisdiction of the province;

i. Expansion projects include modernization and rehabilitation, and

shall mean an increase of existing volume or value of production,

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or upgrading the quality of registered product or to increase

efficiency and productivity within the territorial jurisdiction of the
Province of Iloilo, under such guidelines as the Board may adopt;

j. Gender equality is a social order in which women and men share

the same opportunities and the same constraints on full
participation in both economic and domestic realm.

k. Generation of high levels of employment shall refer to investments

that are able to generate jobs for the local economy preferably
but not limited to utilizing available local manpower and
resources.

l. High degree of value added features shall refer to investments

that shall transform raw inputs into processed outputs of higher
market value.

m. LEDIP Center shall refer to the Local Economic Development &

Investment Promotion Center created under this code that serves
as the Secretariat and implementing arm of the Board;

n. IT/BPO or Information Technology/Business Process Outsourcing

involves the contracting of the operations and responsibilities of
specific business functions or processes to a third-party service
provider.

o. Incentives shall refer to fiscal and non-fiscal incentives as provided

for in this Code.

p. Investment means monetary value of intangible assets (e.g.

patents, software) and tangible assets (e.g. real properties,
buildings, factories, equipment, machinery) purchased

q. Investment Priorities Plan shall mean the overall plan formulated

by the Board and adopted by the Sangguniang Panlalawigan of
the Province of Iloil;

r. Large Scale Enterprise shall refer to an enterprise with a

capitalization of more than One Hundred Million Pesos
(>P100,000,000.00).

s. Local personnel or worker shall refer to men and women workers

who are bona fide residents of the province employed in an
enterprise registered under this Code;

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t. Medium Scale Enterprise shall refer to an enterprise with a

capitalization of more than Fifteen Million Pesos(>P15,000,000.00)
up to One Hundred Million Pesos (<P100,000,000.00)

u. Micro Scale Enterprise shall refer to an enterprise with a

capitalization of three million pesos (P3,000,000.00) or less.

v. New investors/enterprises refers to investors or enterprises that

are not currently engaged in any kind or types of business within
the territorial jurisdiction of the Province of Iloilo but intend to
actually establish their place of operation or production therein.
Existing investors who will engage in a business other than its
existing business or enterprise shall be considered as new
investors or enterprise;

w. No deleterious effect to the environment shall refer to investments

that mitigate its harmful effects to the environment.

x. Portfolio investments are defined as cross border transactions and

positions involving debt or equity securities, other than those
included in direct investment or reserve assets.

y. Preferred investment areas refer to economic activities that are

related to agri-business, tourism and Information and
Communications Technology, and are declared as priority
investment areas under this Code or by the Board in accordance
with the provision of this Code;

z. Province shall refer to the Province of Iloilo and all areas within its
territorial jurisdiction now or existing or hereinafter acquired, as
may be provided for by law and its chapter;

aa. Registered enterprises refer to enterprises or business registered

in accordance with the provision of this Code;

bb. Sex disaggregated data bank means every data that is cross-
classified by sex, presenting information separately for men and
women, boys and girls

cc. Small Scale Enterprise shall refer to an enterprise with a

capitalization of more than three million pesos (P3,000,000.00) up
to fifteen million pesos (<P15,000,000.00);

dd. Social responsibility refers to the idea that businesses should not
function amorally, but instead should contribute to the welfare of
their communities.

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ee. Tax exemptions shall refer and be applied to those taxes under
Article 224, 225, 226 and 229 of the Local Government Code of
1991.

ff. Tax Incentives shall refer to fiscal and non-fiscal incentives as

provided for in this Code;

gg. Women microenterprises shall refer to the development of the

entrepreneurial capacities and economic participation of women
as a significant group active within the micro-enterprise sector.

CHAPTER V. CREATION, COMPOSITION, MEETINGS, POWERS AND

FUNCTIONS OF THE ILOILO PROVINCIAL INVESTMENT PROMOTION
BOARD (IPIPB)

SECTION 8. The Iloilo Provincial Investment Promotion Board. There is hereby

created a body to be known as the Iloilo Provincial Investment
Promotion Board whose members shall be appointed by the Governor
vested with powers and functions as provided in this Code.

SECTION 9. Composition of the Board. The Board shall be composed of the

following:

Chairperson: Provincial Governor

Vice Chairpersons: Provincial Administrator
Representative of the private sector from the Board, chosen
from among themselves

Members: SP Chair, Economic Affairs and Investment

SP Chair, Appropriations
SP Chair, Ways and Means
SP Chair, Culture, History, Arts and Tourism
SP Chair, Agriculture
Provincial Director, Department of Trade and Industry
Provincial Director, Technical Education Skills &
Development Authority
Provincial Director, Department of Labor and Employment
Regional Director, Department of Tourism
President, League of Municipalities
Two (2) representatives, Business Sector
Representative, Tourism Industry
Representative, IT/BPO Industry
Representative, Agri-Business
Representative, Academe

Ex-Officio Members: Provincial Planning and Development Coordinator

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Provincial Budget Officer

Provincial Treasurer
Provincial Assessor
Provincial Tourism Officer
Provincial Agriculturist
Provincial Environment and Natural Resources
Officer
Provincial Legal Officer
Provincial Cooperative Development Officer
Local Economic & Investment Promotion Officer

Secretariat: Local Economic Development & Investment

Promotion (LEDIP) Center

SECTION 10. Term of Office. The term of office of the Co-Chairperson

and the members of the Board shall be coterminous with the
term of office of local officials without prejudice to their
reappointment by the succeeding Provincial Governor.

SECTION 11. Increase and Decrease of Membership. The membership of the

Board may be increased or decreased upon the recommendation of the
Board for the effective implementation of this Code, except those six
(6) representatives from the private and academe sectors who are
appointed by the Governor.

SECTION 12: Board Meetings and Quorum. Within sixty (60) days upon
approval of this Code, the Provincial Governor, in his capacity
as Chairperson, shall convene the Board after appointing the
members as mentioned in Section 9 hereof. The Board shall
meet quarterly and as may be deemed necessary. The
attendance of simple majority of its voting members shall
constitute a quorum and a majority of the quorum of a meeting
shall be required to exercise its power and perform its
functions. For purposes of this Ordinance, quorum of members
shall constitute fifty percent (50%) plus one of all voting and
regular membership of the Board.

Provided further, that a member who has been physically

prevented to attend the meeting by reason of force majeure,
public health emergencies, natural or man-made calamities,
disasters and other analogous circumstances may be allowed
to enter and/or register his or her appearance and attendance
before the secretariat during the official roll call of members
through teleconference, video conference or other remote
electronic means and platforms.

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SECTION 13. Powers and Functions of the Board. Pursuant to this, the
Board shall be vested with the following powers and functions:

a. Formulates the rules and regulations, systems and

procedures to implement the objectives and provisions of
this Code;

b. Initiates the conduct of technical researches on the priority

investment areas as well as the appropriate incentives and
support measures to be extended to registered enterprises
as may be recommended by the LEDIP Center;

c. Formulates and adopts a long-range investment promotion

program and to provide corresponding incentives and
support measures to attract target investors;

d. Supervises the operations and activities of LEDIP Center for

the effective implementation of the provisions of this Code;

e. Reviews and updates the fiscal and non-fiscal incentives to

be granted to registered enterprises under this Code;

f. Approves or rejects applications submitted to the Board for

availment and entitlement of incentives under this Code
within thirty (30) days upon receipt hereof; and issue the
Certificate of Registration and Certificate of Exemption to
approved applications, taking into consideration the
existing Investment Code of the different municipalities and
component city of the Province of Iloilo.

g. After due notice, cancels the incentives or suspend the enjoyment

of incentives or benefits of any registered enterprises for failure or
in violation of the terms and conditions of registration set by the
Board;

h. Promotes Iloilo as a preferred investment destination through the

conduct of outgoing investment missions, investment forum or
conference and hosting of incoming investment missions. In order
to give more effect to the investment program under this Code,
the Board is hereby empowered to conduct investment missions,
both local and foreign, for the purpose of inviting investors as well
as providing necessary information to parties willing to avail of the
fiscal and/or non-fiscal invectives under this Code.

i. Identifies and recommends Industrial Estates and Business Parks

and other investment areas in the Province of Iloilo in accordance

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with the approved investment priorities of the municipalities and

component city.

j. Generates additional funding and resources to supplement the

budgetary support provided by the province for the
implementation and operation of this Code;

k. Undertakes active advocacy campaigns for infrastructure

programs aimed at providing necessary facilities as well as policy
reforms to enhance Iloilo’s investment climate;

l. Enters into agreement with any entity for the purpose of

simplifying systems, procedures, and requirements on
investments and business operation in the Province of Iloilo.

SECTION 14. Honorarium. Only non-government members of the Board may

receive honoraria at the rate to be fixed by the Board in accordance
with existing laws.

SECTION 15. Powers and Functions of the Chairperson. The Chairperson of the
Iloilo Provincial Investment Promotion Board (IPIPB) shall have the
following powers and functions:

a. Appoint the members of the Board as per Section 9 hereof;

b. Preside over the regular and special meetings of the Board;

c. Render annual reports to the province and such special

reports as may be requested;

d. Recommend to the Board policies and support measures

that may be deemed necessary to carry out the objectives
of the Code;

e. Exercise such other powers and performs such other duties

as may be authorized by the Board.

SECTION 16. Creation of the Local Economic Development & Investment

Promotion (LEDIP) Center. – There is hereby created a body to
be known as the Local Economic Development & Investment
Promotion Center, which shall be headed by the Local Economic
& Investment Promotion Officer and shall be supported by three
(3) technical staffs and two (2) clerks and other necessary
positions that the Board may recommend to the Sangguniang
Panlalawigan. It shall among others serve as liaison and
secretariat of the Board and shall assist the Board in the delivery
of its functions.

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SECTION 17. Powers and Functions of the LEDIP Center. The Center shall have
the following duties and functions:

a. Screen and evaluate applications for investment incentives and

privileges under this Code and submit such applications to the
Board for approval and issuance of Certificate of Registration and
Certificate of Exemption, within thirty (30) days upon receipt
hereof;

b. Undertake pro-active and re-active market development and

investment promotion activities;

c. Undertake an active advocacy campaign to push infrastructure

programs aimed at providing necessary facilities, as well as policy
reforms to enhance Iloilo’s investment climate.

d. Implement the annual investment promotion and development

plan as formulated and approved by the Board;

e. Serve as one-step shop for accepting, processing and evaluating

all applications for registration for the availment of the local
incentives and submit its recommendations to the Board within
fifteen (15) working days from the receipt of application;

f. Assist in (1) securing licenses and permits, (2) arranging for the
availment of Local and National Government incentives, and (3)
providing a listing of joint venture partners, raw materials
suppliers, possible business sites and other requirements of
existing and potential investors and enterprise;

g. Establish and maintain networking relations with counterpart

investment promotion organizations and coordinate with support
agencies of government and the private sector in investment
promotion efforts;

h. Organize and train LEDIP Center staff with the competence to

conduct investment and environment management promotion
functions;

i. Serve as the Secretariat of the Board; and

j. Perform such other functions as may be directed by the Board.

SECTION 18. Local Economic Development & Investment Promotion (LEDIP)

Center Services. Pursuant to its duties and functions, the Local

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Economic Development & Investment Promotion Center shall provide

the following services, among others:

a. Provide information on investment opportunities, business

procedures, permit requirements, government regulations and
other data required by the investor;

b. Design and implement marketing and promotion strategies;

c. Assist in the (1) processing, securing licenses, permits and

incentives from local and national government agencies; (2)
identifying business or joint venture partners, raw materials and
supplies, possible business sites and other requirements of
existing and potential investors and enterprises;

d. Establish and maintain sex disaggregated data bank on general

business information, information on economic activities,
available technology, financing sources and other relevant data or
information;

e. Collate, analyze and compile pertinent data, information and study

concerning areas that have been or may be declared as
“preferred/priority areas of investments” by the Board;

f. Make referrals to relevant government bodies, support

organizations, service providers and important contacts;

g. Organize appointments, itineraries and site visits including

facilitating arrangements for logistical support;

h. Prepare updates regarding major infrastructure projects in the

province both existing and planned, as well as other programs and
developments that will impact the business environment;

i. Prepare the agenda for the meeting of the Board;

j. Submit annual report on the activities of the Center to the Board

thru the Chairman within 90 days after the last day of the calendar
year.

SECTION 19. Visitorial Power of the Board and Center. Visitorial

Power of the Board and Center. The Board or any duly authorized
member thereof, is hereby empowered and authorized to conduct an
ocular inspection of the premises or examination of the business activity
of any enterprise, audited financial statements at any reasonable time
of the day, during office hours, for verification or ascertaining the
enterprise’s qualifications and strict compliance with the provisions of

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the Code, or when the Board deems it necessary or incidental to the

effective exercise and performance of their functions and powers.

In the exercise of its visitorial power, the Board shall grant visitorial order
to the authorized regular and/or Ex-Officio member, specifying the
purpose of the said visitation. The examination of the business records
and books shall only be limited to verification and ascertaining
enterprise’s strict compliance with the provisions of the Code.

Provided further that such visitorial power shall not in any way violate any
provisions of Republic Act 10173, otherwise known as Data Privacy Act of
2012, or any existing laws and legal orders related to unlawful release of
business records and other related company data and/or information.

CHAPTER VI. INVESTMENT PRIORITIES PLAN

SECTION 20. Investment Priorities Plan shall mean the over-all plan formulated
by the Board and adopted by the Sangguniang Panlalawigan which
includes and contains the analysis, synthesis and projections of data
collected by the Board from public and private sectors, which measure
and indicate the following:

1. The existing and prospective demand for specific products and

commodities, final and intermediate, in the light of the level and
structure of income, production, trade, prices and relevant
economic and technical factors;

2. The existing capacities for producing specific products and

commodities manufactured out of or with the use of domestic raw
materials, the export of which should be encouraged;

3. The gaps and prospective demand and existing supply for specific
products and commodities, and the additional production
capacities that must be induced where such gaps exists;

4. The specific areas of economic activity to be declared as preferred

areas of investment and the corresponding capacities thereof;

5. The areas where such additional capacities can be located

considering the presence of natural resources, labor, transport
facilities, power, water supply and the like;

6. The capital investment necessary to bring such additional

capacities needed, and the sources thereof, whether domestic or
imported;

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7. The raw material input requirements of the additional capacities

needed, and the sources thereof, whether domestic or imported;

8. The needed technology for product development to promote

MSMEs particularly women microenterprises;

9. The respective roles and responsibilities of the private sectors and

the government and the capital investments required thereof, to
make private investments in preferred areas feasible;

10. The specific public works project that need to be undertaken by

the government and the capital investments required thereof, to
make investments in preferred areas feasible;

11. The minimum requirements for maintaining conditions of

competition in any industry; and

12. Other similar relevant factors which the Board considers desirable
to include;

a. The list of the export products or services that should be

encouraged with priority, considering the following:

i. The comparative advantage they enjoy or could be

made to enjoy;

ii. Their potential for earning foreign exchange; and

iii. Their significant contribution to the national

economy;

b. Additional volume of agricultural production and related

services necessary to supply the needs of the economy
including the export market, which can qualify for incentives
under this Code;

c. Public utilities which can qualify for incentives under this

Code and which shall be supported by studies of existing and
prospective demands for such services in the light of the level
and structure of income, production, trade, prices and
relevant economic and technical factors of the regions as well
as the existing facilities to produce such services; and

d. Specific activities where the potential for utilization of

conventional and non-conventional sources of energy can be
best promoted.

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SECTION 21. Criteria in Determining Investment Priority Areas. The

determination of the preferred areas of investment to be listed in the
Investment Priorities Plan shall be based on the following:

a. Long-term competitive advantage

b. Environmental impact
c. Economic viability
d. Extent of projects’ contribution to the local economy
e. Social responsibility
f. Gender equality

The Board 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
Board.

SECTION 22. Preferred Investment Areas. In the initial years of implementation,

the following must be adopted as priority investment areas by the
Board:

Agri-business (Agriculture and Fisheries)

1. Palay, sugar and corn production, processing and value-
adding
2. Fruits and vegetables production, processing and value-
adding
3. Fishery production, processing and value-adding
4. Poultry and livestock production, processing and value-
adding
5. Seaweed production and processing
6. Aquaculture
7. Fish landing facilities
8. Cold Storage
9. Vapor heat treatment/irradiation
10. High-value crop production/processing/value-adding
11. Feed mill
12. Alternative Fuels including Bio-Diesel etc. but not limited to
Bio-Diesel and Bio Fuel
13. Organic Farm Inputs Production
14. Seed Production
15. Food Terminal Complex
16. Slaughter Houses

Tourism and other tourism oriented enterprises:

1. Accommodation Facilities
2. Transportation Services (land, air and sea)

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3. Restaurants/Food Services
4. Natural and Adventure Parks
5. Adventure and Extreme Sports
6. Zoological and Botanical Parks
7. Heritage Tourism (Land Marks and Monuments)
8. Pilgrimage Tourism (Retreat Houses, Pilgrimage Shrines)
9. Wellness/Medical Tourism
10. Farm and Agri-Tourism
11. Cultural Tourism
12. Tourism Schools and Training Center
13. Tourism Estate Management Services
14. Tour and Travel Services
15. Cruise Tourism
16. Guiding Services
17. Shops and Department Stores
18. Meetings, Incentive Travel, Conventions and
Exhibitions/Events (M.I.C.E.) Facilities
19. Museums
20. Ecotourism sites
21. Amusement Parks and Waterparks

Manufacturing
1. Electronics
2. Ship building/ship repair
3. Assembly plants
4. Steel Production
5. Metal crafts
6. Furniture/furnishings
7. Garments, wearables and woven products
8. Gifts, Toys and House wares
9. Handicrafts and souvenirs
10. Fashion Accessories
11. Ice Plants
12. Herbal production

Property Development
1. Housing Development
2. Retirement Village
3. Convention and Cultural Facilities
4. Information Technology Park
5. Industrial Parks
6. Special Economic Zones
7. Factory Outlets
8. Strip malls and town centers
9. Transport Terminal

Services and other Service Oriented Enterprises:

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1. IT/Business Process Management

2. Research and Education Infrastructure Support Facilities
3. Sports Facilities
4. Media/Advertising
5. Medical Services/Facilities
6. Electronics and Telecommunications Enterprises
7. Financial Services
8. Engineering/Architectural Services and other Infrastructure
9. Development of Energy and Other Renewable Energy and
Water Resources
10. Carbon Trading and/or carbon credit
11. Educational Establishments
12. Port Facilities
13. Logistics Services
14. Warehousing
15. Funeral Homes, Crematorium and columbarium

Pioneering and Emerging resilient industries and

technologies:
1. Green technologies and industries
2. Ecosystem support services
3. Blue and grey infrastructure
4. Renewable sources of energy
5. Biodiversity-friendly business enterprise
6. Creative industries such as but not limited to
animation, E-games and sports development
7. Resource recovery, recycling and waste treatment
facilities

The Board reserves the right to recommend additional

emerging business classifications and enterprises.

SECTION 23. Determination of Additional Investment Areas. Additional

economic activities may be included in the list of priority investment
areas upon approval by the Board and shall then be adopted for the
implementation under this Code. The inclusion of investment priority
areas should be based on the following factors:

a. Generation of high levels of employment

b. High degree of added value to raw materials
c. Creation of linkages with local industries
d. Inclusion of corporate social responsibility
e. No deleterious effect to the environment

The Board, however, may recommend to the Sanggunian Panlalawigan

the removal of an area or activity from the list at any point when any or
all of the following conditions is present:

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a. Sufficient investments in the area or activity have been attained.

b. Continued extension of incentives or support measures for the
specific investment area is no longer the interest of the Province
of Iloilo or may place the government and the public in adverse
position;
c. The investment area or activity cannot attract investors within
reasonable time and cost or may result in unfavorable business
climate; and
d. Lack of progress in the implementation of an environmental
management plan.

SECTION 24. Review of Investment Incentives and Support Measures. To

promote the growth of investments in the Province, particularly in the
preferred investment areas, the Board shall review the package of
incentives and support measures at least every two (2) years, and
recommend for approval to the Sangguniang Panlalawigan the
appropriate specific fiscal and non-fiscal incentives that the
government may grant to investors and enterprises.

CHAPTER VII. QUALIFICATIONS OF ENTERPRISES

SECTION 25. Qualifications of New Investors/Enterprises. New investors who

intend to avail of the incentives provided in this Code must meet the
following qualifications:

a. The business enterprise must have complied with all the

requirements mandated under existing local and national laws,
rules and policies of the government;

b. The prospective investor’s place of production and operation be

located within the territorial jurisdiction of the Province of Iloilo;

c. Must be duly registered with the appropriate government

agencies, such as Securities and Exchange Commission (SEC) in
the case of a corporation, association and partnership,
Department of Trade and Industry (DTI) in the case of a single
proprietorship or Cooperative Development Authority (CDA) in
the case of a cooperative.

d. The type of business or investment must be among the list of

preferred areas of investments such as agri-business, tourism and
tourism oriented enterprises, manufacturing, property
development, information and communications technology or
business process outsourcing, services and other service-oriented
enterprises as set forth by the Board;

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e. The new enterprise must have a capitalization of not less than

Three Million Pesos (P3,000,000.00) for local investors and not less
than two hundred thousand dollars ($200,000.00) for foreign
investors (excluding the cost of land) provided that the amount of
capitalization shall be based on the total project cost as stated in
the investor’s project study submitted to and approved by the
Board;

f. Foreign companies intending to apply for registration must

comply with the Foreign Investment Act of 1991 (RA 7042) and the
provisions of this Code;

g. Project must be compliant to environmental laws, rules and

regulations;

SECTION 26. Qualifications for Existing Enterprise. Any existing enterprise who
intends to expand may avail of the incentives under this Code provided
that the following qualifications are met:

a. The business enterprise must have complied with all the

requirements mandated under the existing laws, rules and
regulations;

b. The intended expansion or diversification of the existing

enterprise must engage in an economic activity identified as an
investment priority area by the Board;

c. The existing enterprise whose place of operation or production is

already located within the territorial jurisdiction of the province
but which intends to expand its existing production capacity or
construct new buildings and other civil works for the installation
of new machineries and equipment or improvements thereof
which will result in an increase production capacity;

d. The expansion or diversification shall have an additional

investment of not less than One Million Pesos (P1,000,000.00) for
local investors and not less than Two Hundred Thousand Dollars
($200,000.00) for foreign investors as stated in the investor’s
project study submitted to and approved by the Board;

e. The expansion or diversification project will provide additional

employment to bona fide residents of the province; and

f. The expansion or diversification shall include an environmental

management plan.

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SECTION 27. Employment Preference for Ilonggo Residents. Any person,

partnership, corporation, association whose application has been
accepted and granted Certificate of Registration and Certificate of
Exemption under the pertinent provisions of this Code must employ at
least sixty- percent (60%) Filipino working force and residents of Iloilo
Province as certified by the employee’s Barangay Captain.

SECTION 28. Application and Registration Requirements. New or existing

enterprises shall file its application for registration with the Board
through the Local Economic Development & Investment Promotion
(LEDIP) Center within One Hundred Twenty (120) calendar days from
the start of operation to qualify for incentives provided herein.

For purposes of this Ordinance, start of operation shall be reckoned

from the date of issuance of business permit and/or Mayor’s permit to
the business enterprise and/or entity.

Qualified investors/enterprises shall be considered to have waived their

privilege to avail of incentives provided in this Code if no such
application is received within the specific period. All applications are
recorded in a registration book and date of receipt stamped on the face
thereof.

A non-refundable filing fee in the following amount:

a. P2,000.00 for micro scale investment

b. P5,000.00 for small scale investment
c. P10,000.00 for medium scale investment
d. P25,000.00 for large scale investment

shall be paid to the Treasurer after submission of the following

documents for registration to the LEDIP Center:

a. Single Proprietorship
1. Four (4) copies of completed registration forms which is
duly notarized
2. Four (4) copies of the complete project study of the
proposed investment/expansion showing that the
project is economically, technically, financially and
environmentally feasible and viable
3. Certified true copy of the Business Name Registration
issued by the DTI
4. Copy of BOI Certificate of Registration in case of BOI
registered enterprise
5. Copy of latest audited Financial Statements (if existing)
6. Complete copy of the Environmental Impact Study, if
applicable

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7. Copy of the Environmental Compliance Certificate, if

applicable
8. For tourism related businesses, compliance of tourism
accreditation policies and guidelines
9. Copy of Mayor’s Permit

b. Partnership / Corporation
1. Four (4) copies of completed registration forms which is
duly notarized
2. Four (4) copies of the complete project study of the
proposed investment/expansion showing that the
project is economically, technically, financially and
environmentally feasible and viable
3. A copy of the Articles of Partnership or Incorporation as
approved by the Securities and Exchange Commission
(SEC) for partnership, corporation, association and
foundation
4. A certified true copy of its Certificate of Registration
issued by the Securities and Exchange Commission
(SEC)
5. Resolution of the applicant’s Board of Directors, in case
of a Corporation authorizing the filling of application
6. A copy of audited Financial Statements (if existing)
7. A complete copy of the Environmental Impact Study, if
applicable
8. A copy of the Environmental Compliance Certificate, if
applicable
9. For tourism related businesses, compliance of tourism
accreditation policies and guidelines
10. A copy of Mayor’s Permit

c. For Cooperative
1. Four (4) copies of completed registration forms which is
duly notarized
2. Four (4) copies of the complete project study of the
proposed investment/expansion showing that the
project is economically, technically, financially and
environmentally feasible and viable
3. A copy of the Articles of Cooperation as approved by
the Cooperative Development Authority (CDA) for
cooperatives
4. A copy of CDA Registration
5. A copy of audited Financial Statements (if existing)
6. A complete copy of the Environmental Impact Study, if
applicable
7. A copy of the Environmental Compliance Certificate, if
applicable

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8. For tourism related businesses, compliance of tourism

accreditation policies and guidelines

SECTION 29. Registration Procedures and Approval. The Board is authorized to

adopt Rules and Regulations to facilitate action on applications filed
with it; prescribe criteria for the evaluation of applications filed in one
preferred area; and devise standard forms for use of applicants.
Decision on application shall be made within thirty (30) calendar days
from date of official receipt by the Board, otherwise, application is
deemed approved. The LEDIP Center shall notify the applicant in
writing of its approval or refusal or request for additional information
to be submitted.

SECTION 30. Certification of Registration. A registered enterprise under this

Code shall be issued a Certificate of Registration with the signature of
its Chairperson. The Certificate of Registration shall be in such form
and style as the Board may determine.

Registration will automatically be cancelled for failure to commence

operation within one (1) year after approval of the application, unless
formally extended by the Board for due cause but in no case shall be
more than two (2) years from approval of application.

SECTION 31. Annual Registration Fees. Upon the approval/acceptance of any

applicant to the Investment Incentives Program, the applicant shall be
required to pay the following annual Registration Fee to the Provincial
Treasurer’s Office:

a. P5,000.00 for micro scale investment

b. P20,000.00 for small scale investment
c. P50,000.00 for medium scale investment
d. P100,000.00 for large scale investment

after which the Iloilo Provincial Investment Promotion Board shall issue
a Certificate of Exemption to the business concerned as applicant duly
stating the incentives and privileges granted under the provisions of
this Code.

SECTION 32. Rates for Succeeding Annual Availment Fees. For the Succeeding
Annual Availment Fees, the applicable rate shall be the following:

a. P5,000.00 for micro scale investment

b. P20,000.00 for small scale investment
c. P50,000.00 for medium scale investment
d. P100,000.00 for large scale investment

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SECTION 33. Remittance of Annual Availment Fees. All registrants who are
granted the incentives / privileges for more than one year shall remit
their Succeeding Annual Availment Fee in full to the Provincial
Treasurer’s Office on or before January 20 of each calendar year.

CHAPTER VIII. PRIVILEGES OF REGISTERED ENTERPRISES

SECTION 34. Privileges Guaranteed by the Provincial Government. All duly

registered enterprises are entitled to the rights and guarantees
provided by the Law and Constitution. In addition to such rights and
guarantees and to enhance investor’s confidence under this Investment
Incentives Program, the Provincial Government; thru the Iloilo
Provincial Investment Promotion Board, shall:

a. Provide a concise and comprehensive information to prospective

investors on the economic priorities of the Provincial Government,
including target investment areas and the general favorable
conditions applicable to them;

b. Disseminate investment evaluation criteria and procedures to

enhance government transparency in the process of granting
incentives;

c. Take the fullest possible account of the need of the investors for
industrial peace, stability, growth and profit in their operations in
the formulation or modification of policies and ordinances that will
affect investments;

d. Facilitate investor’s implementation of the investment project

including ownership and management structure of the enterprise
unless the law provides otherwise;

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 last
provides otherwise;

f. Avoid undue competition between or among enterprises

operating within its territorial jurisdiction, whether domestic or
foreign, when granting any special exemptions or incentives
aimed at encouraging investments in the identified target areas;

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g. In accordance with law, all investors who shall invest under this
Code are hereby encouraged to hire employees residing within
the Province; and in cases where no local personnel or worker is
qualified and capable, allow the employment of qualified non-
resident or foreign personnel when necessary, for the efficient
operation of the enterprise or for technology transfer; and,

h. 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.

CHAPTER IX. TAX EXEMPTION PRIVILEGES AND INCENTIVES

SECTION 35. Tax Incentives for registered enterprises. In addition to the

incentives provided by law, by Republic Act 7160, or the Local
Government Code of 1991, and Republic Act 7916 known as “The
Special Economic Zone Act of 1995”, Executive Order No. 226 known as
the “Omnibus Investment Code and other pertinent law, a registered
enterprise shall be entitled to the following tax incentives:

a. From the date of approval of registration by the Board up to the

start of commercial operation, which shall not exceed one (1) year,
a registered enterprise qualified under this Code shall within ten
(10) years for new enterprise and ten (10) years for expanding
enterprise from start of its commercial operation, shall enjoy the
aforesaid provincial impositions under the conditions and manner
herein prescribed, such as:

i. Real Property Tax under the Local Government Code of

1991, as adopted under the Provincial Ordinance 2010-
084 or the 2010 Provincial Revenue Code of Iloilo;

ii. Transfer of Real Property Ownership under Article 224

of the IRR of the Local Government Code of 1991, as
adopted under the Provincial Ordinance 2010-084 or
the 2010 Provincial Revenue Code of Iloilo;

iii. Business of Printing and Publication under Article 225

of the IRR of the Local Government Code of 1991, as
adopted under the Provincial Ordinance 2010-084 or
the 2010 Provincial Revenue Code of Iloilo;

iv. Franchise Tax under Article 226 of the IRR of the Local
Government Code of 1991, as adopted under the
Provincial Ordinance 2010-084 or the 2010 Provincial
Revenue Code of Iloilo;

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v. Amusement Tax under Article 229 of the IRR of the Local

Government Code of 1991, as adopted under the
Provincial Ordinance 2010-084 or the 2010 Provincial
Revenue Code of Iloilo (whenever applicable);

vi. A registered new enterprise or expanding enterprise

qualified under this Code shall within ten (10) years
from start of its commercial operation, be exempt from
impositions of Real Property Tax under the conditions
and manner herein prescribed. The exemption shall be:

Year New Enterprise Expanding

% of Reduction Enterprise
% of Reduction
1st year 100% 100%
2nd year 100% 90%
3rd year 90% 80%
4th year 80% 70%
5th year 70% 60%
6th year 60% 50%
7th year 50% 40%
8th year 40% 30%
9th year 30% 20%
10th year 20% 10%
11th year - -

b. A year’s coverage of tax incentives for the business shall cover 365
days from the start of commercial operation.

SECTION 36. Non-fiscal Incentives. Registered enterprises and investors shall be

granted the following non-fiscal incentives:

a. Provision of a one-stop documentation center for simplified

documentation procedures.

b. Assistance in securing permits, licenses and other documentary

requirements.

c. Provision of reliable, accurate and timely information.

d. Assistance in labor recruitment.

e. Facilitate and make referrals to relevant government bodies,

support organizations, service providers and important contacts.

f. Facilitate access to financial and technical assistance programs of

the government.

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 AMENDED ILOILO PROVINCIAL INVESTMENT AND INCENTIVES CODE OF 2015
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g. Facilitate services with local utilities, e.g. power, water,

telecommunications, etc.

h. Assistance in marketing and promotion of products and services.

i. Provide network with private sectors and other business

organizations.

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

SECTION 37. General Guidelines. The Provincial Government of Iloilo, upon

recommendation of the Board, shall grant exemptions and incentives
under the terms and conditions provided in this Code. However, this
exemption shall not apply to regulatory fees which are levied under the
police power of the Provincial Government. Tax exemptions shall be
conferred through the issuance of a tax exemption certificate, which
shall be non-transferrable. The grant of these exemptions and
incentives shall be governed further by the following:

a. Tax exemptions:
1. The grant to a type or kind of business shall apply to all
businesses similarly situated subject to pertinent
provisions of this Code.

b. Tax Incentives:
1. Tax incentives shall be granted only to new investments
in the locality qualified under this Code.
2. Existing enterprises with proposed expansion may
register and qualify for exemptions on the expanded
portion under this Code.

SECTION 38. Non-Transferability of Incentives. The incentives and privileges

granted to the registered enterprises of this Investment and Incentives
Code are non-transferable, except in the invent of death, permanent
incapacity of a participating member, where the incentives and
privileges shall be transferred to the heirs of the decedent in
accordance with the law on succession, if the applicant is a natural
person. Mergers, consolidations, buy-outs and the like of corporations
or partnerships shall be decided on a case-to-case basis by the Board
provided that when such movements are done to strengthen the
corporation and increase its capital investment, then such movement
may be treated as an expanding enterprise.

CHAPTER X. FUNDING

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SECTION 39. Appropriation. Initial funding of Five Million Pesos

(P5,000,000.00) shall be appropriated for the implementation of the
provisions of this Code which shall be sourced from the General Fund
of the Province. Thereafter, the Iloilo Provincial Government shall
appropriate annually an amount based on the budget presented by the
Board, for the continued implementation of the provisions of this Code,
subject to the usual government accounting and auditing rules.

CHAPTER XI. FINAL PROVISIONS

SECTION 40. Reporting. At the end of each calendar year but not later than April
30th, all registered enterprise to this Program shall submit copies of duly
audited financial statements and Income Tax Return (ITR) to the Board
for evaluation and record purposes.

SECTION 41. Monitoring and Evaluation. The LEDIP Center shall monitor and
evaluate project implementation for the purpose of ensuring that the
objectives are accomplished.

SECTION 42. Penal Clause. Any violation of the provisions of this Code shall be a
ground for the cancellation or revocation of the registration of the
business after due notice and hearing, and the withdrawal of all the
incentives granted under this Code without prejudice to penalties which
other pertinent laws or ordinances may provide upon the approval of
the Sangguniang Panlalawigan.

SECTION 43. Separability Clause. If, for any reason, any provision of this Code
shall be held to be unconstitutional or invalid, other parts or provisions
hereof which are not affected thereby shall continue to be in full force
and effect.

SECTION 44. Effectivity. This Code shall take effect upon compliance of the
mandatory posting and publication requirements provided for in
Republic Act No. 7160, otherwise known as the Local Government Code
of 1991.

RESOLVED FURTHER, to furnish copies of this Ordinance, the Governor,

Hon. Arthur D. Defensor, Sr.; All Municipal Mayors, Province of Iloilo; Mr. Mario N. Nillos,
Provincial Planning and Development Office; Ms. Velma Jane C. Lao, Local Economic &
Investment Promotion officer/Secretariat, Iloilo Provincial Investment & Promotion
Board; Engr. Wilhelm M. Malones, Provincial Director, Department of Trade and
Industry-Iloilo; Atty. Helen J. Catalbas, Reginal Director, Department of Tourism VI, Iloilo
City; the Offices of the Provincial Administrator, the Provincial Budget Officer, the
Provincial Treasurer, the Provincial Assessor, the Provincial Agriculturist, the Provincial
Tourism Officer, and the Provincial Legal Officer, all of the Province of Iloilo, for their
information and reference;

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APPROVED.”
-----
I HEREBY CERTIFY to the correctness of the above-quoted Resolution.
(insert signatories)

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