office of the ci office of the city mayor

OFFICE OF THE CIOFFICE OF THE CITY MAYOR

Welcome to General Santos City and welcome to your investment destination!

As a vibrant and growing community, housing over 423 banks and other financial institutions, the city is considered as one of the fastest developing trade and commercial hubs in the country owing to its promising business environment.

The constant increasing number of businesses thriving in the city is a clear indicator that the government is committed in ensuring efficiency in attracting new investors and in retaining businesses by offering five years of incentives, at most. Thus, the crafting of the General Santos City Investment Code of 2015.

As a matter of fact, a specialized office named as General Santos City Investment Center has been established to give technical assistance to investors from data gathering to business referrals.

More than that, we have created a unique business atmosphere as the government and the private sector organizations forged partnership to foster mutual interests and putting leverage on the strength of each stakeholders to come up with a sound business environment.

So take advantage of what we can offer. We have built partnerships.

And soon we build it with you!

RONNEL CHUA RIVERACity Mayor

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OFFICE OF THE CIOFFICE OF THE CITY MAYOR

Republic of the PhilippinesOFFICE OF THE CITY MAYORGeneral Santos CIty

The Gensan Chamber congratulates the local government of General Santos City headed by Mayor Ronnel C. Rivera, and in particular the City Economic Management and Cooperative Development Office (CEMCDO) headed by Engr. Riza Marie T. Paches, for coming up with the GSC Investment Code Brochure! The pertinent ordinances and the LGU’s economic programs should be effectively communicated and disseminated to achieve the LGU’s objectives. The GSC Investment Code Brochure serves this vital function of effective communication and dissemination.

The centerpiece is the General Santos City Investment Code of 2015 which is the result of public and private sectors collaboration. The Gensan Chamber and CEMCDO worked together in the technical committee that drafted this Ordinance under the guidance of the Office of the City Mayor. After rigorous legislative process initiated by the Ordinance’s author, Councilor Brix T. Tan, and co-authors Councilors Ramon R. Milleza, Arturo C. Cloma, Dominador S. Lagare III, Shandee Theresa O. Llido-Pestaño and Elizabeth B. Bagonoc, the Ordinance was given its final form and substance by the Sangguniang Panlungsod ably presided by Vice Mayor Shirlyn L. Bañas-Nograles. This Ordinance is the response to contemporary realities and needs, and will definitely attract new investors to the City and encourage existing investors to further expand. This will further stimulate economic growth and boost the City’s role as the business and trade hub of Region 12, which is one of the fastest developing regions in the country.

This GSC Investment Code Brochure highlights the opportunities that abound, the business-friendly regulatory environment and processes, the advantageous infrastructure development and geographical features, the accessibility of rich natural resources and modern facilities and amenities, the availability of competent human resources, the efforts to manage and mitigate environmental and social impacts, and the City’s development priorities. This publication will definitely contribute to the realization of the City’s policies to encourage robust partnership with the business sector, attract both local entrepreneurs and foreign investors, accelerate economic progress, generate employment opportunities, increase revenues and income, reduce poverty, improve and develop the City investment climate, and become a prime mover for the development and promotion of the micro, small and medium enterprises.

I am sure that you will find this GSC Investment Code Brochure interesting, informative and useful. To all those who had a hand in its conceptualization, preparation and publication, congratulations for the job well done!

To my fellow Generals, let us take pride in and contribute to the continued success and growth of General Santos City! Mabuhay!

ATTY. RAUL JOSEFINO F. MIGUEL President General Santos City Chamber of Commerce and Industry, Inc.

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GENERAL SANTOS CITY CHAMBER OF COMMERCEAND INDUSTRIES, INCORPORATEDGeneral Santos City

General Santos CIty continues to offer convincing case for investment and sustained growth. Its economy remains resilient wit6h positive performance in key growth industries.

Recent policy have kept the city’s relentless commitement of offering an investor-friendly environment with streamlined business transaction processing which reduce the cost of doing business.

The banking system as an enabler of economic growth, lauds teh General Santios City Investment Center (GSCIC) for coming up with the General Santos City Investment Priorities Plan (GSCIPP) which presents tghe snapshot of the immense business opportunities fopr prime potential investors to decide and await tax holidays and other incentives.

Thank you.

JOEL M. INABANGANPresidentCity Bankers’ Association of General Santoss, Inc.

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CITY BANKERS’ ASSOCIATION OF GENERAL SANTOSGeneral Santos City

It is my pleasure to congratulate the team that formulated the “Revised Investment Code of 2015” otherwise known as The General Santos City Investment Code.

Indeed, the Code has undergone many changes since its inception in 1998, a manifestation of the Local Government’s desire to adapt to the present needs of the clients and maximize all efforts to upload a robust and productive business climate in the City.

With the revised Investment Code which is investor friendly, we are very confident that General Santos City would be in the mind of local and foreign investors whenever they think of an investment location in Southern Philippines.

Mabuhay tayong lahat!

ENGR. ARNEL V. SAYCOOfficer in Charge

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DEPARTMENT OF TRADE AND INDUSTRYGeneral Santos City Field OfficeGeneral Santos City

Ordinance No. 16, Series of 2015An Ordinance Enacting

THE GENERAL SANTOS CITYINVESTMENT CODE OF 2015

TITLE ITITLE, DECLARATION OF POLICY AND OBJECTIVES

SECTION 1. TITLE. – This ordinance shall be known and cited as the “General Santos City Investment Code of 2015.”

SECTION 2. DECLARATION OF POLICY.– It is the declared policy of this city to actively encourage the participation of the private sector in the promotion of economic growth and prosperity in the city, and for the purpose, it shall grant fiscal and/or non-fiscal incentives to investors, both local and foreign, particularly in identified investment priority areas, to attract new investors and keep and retain existing investments and encourage their expansion, in addition to generally creating and maintaining a business-friendly environment that will accelerate economic progress, generate employment opportunities, increase revenues and income, reduce poverty, mitigate the impact of climate change, maintain ecological balance, and improve the quality of life of the people of General Santos City.

SECTION 3. PURPOSES AND OBJECTIVES. –The General Santos City Investment Code of 2015 has the following purposes and objectives:a. To provide guidelines, standards, and procedures for the grant, administration, and availment

of local incentives;b. To define the scope and breadth of incentives that the city may grant in its effort to attract

investments to the city consistent with the policy of this Code, as well as promote and support micro-small medium enterprises and create business opportunities that can pave the way to an improved utilization of local resources, develop markets for local products, and ignite the ingenuity of the entrepreneurs and other stakeholders;

c. To provide the guidelines and criteria for the identification of General Santos City Investment Priority Areas(GSCIPAs);

d. To provide resources for the promotion of the GSCIPAs;e. To establish the General Santos City Investment Board and the General Santos City

Investment Center to implement this Code and all the investments promotion programs of the city including those under the Public-Private Partnership (PPP), for business attraction and retention, and for business expansion or diversification; and

f. To identify the conditions for the grant of incentives to investors and their continued enjoyment of the same, subject to the maximum term of the incentives granted to them.

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Hon. Brix T. Tan–Author

Hon. Ramon R. MellizaHon. Arturo C. ClomaHon. Dominador S. Lagare IIIHon. Shandee Theresa O. Llido-PestañoHon. Elizabeth B. BagonocHon. Rosalita T. NuñezHon. Rogelio D. Pacquiao –Co-Authors

SECTION 4. STATEMENT OF POLICIES ON THE IDENTIFICATION OF PRIORITY AREAS AND APPROVAL OF INCENTIVES APPLICATIONS. –General Santos City hereby adopts the following policies for the identification of priority areas and approval of incentives applications:

a. Grant of incentives. – The grant of incentives shall be based on categorical and clear criteria, time-bound, and consistent with national laws. The incentives shall be fairly administered to ensure a level playing field for investors in the locality. The incentives shall be extended only to business activities that support and promote the development vision of the city and those which are included in the GSCIPAs.

b. Policy in the Identification of GSCIPAs. – The city shall consider an economic activity, a GSCIPA if it is shown to be economically, technically, and financially sound after thorough examination and analysis by the Board, without prejudice, however, to the determination of the same by the relevant national government as such agencies. The determination of investment areas is to be included in the General Santos City Investment Priorities Plan (GSCIPP), which shall be based on long-term comparative advantage, taking into account the value of social objectives and employing economic criteria along with market, technical, and financial analysis.

Business activities shall be considered for inclusion in the GSCIPA on the basis of the following criteria:

1. significant potential contribution to the growth of a sizable number of existing businesses or to a vital industry in the city;

2. the business activity is aligned with the development vision of the city;3. capacity to generate employment, whether direct or indirect, particularly for those within

the city;4. use of locally available materials and resources;5. amount of capital to be invested in the city; 6. pioneering nature of technology to be employed in the business; 7. ability to promote the dispersal of business activities to less-developed areas within the

city; 8. ability to improve environmental conditions within the city including bio-diversity, or

involves activities that promote sustainability of existing natural resources of the city; and9. contribution to infrastructure that promotes the use of environment-friendly design,

renewable energy, and other activities that minimize carbon footprint.

Provided, that in the case of existing businesses, in the interest of maintaining the current revenue sources of the city, they shall only be qualified to avail of incentives in case they undertake an expansion, modernization or rehabilitation and diversification.

c. Continuing conditions on the grant of incentives. – The Board may impose any of the following minimum continuing conditions on Registered Enterprises as a condition to their continued entitlement to the incentives granted at the time of their registration. 1. efficient use of natural resources to conserve and protect those indigenous to the city; 2. they minimize the adverse impact or enhance the positive effect of their operation on the

6Ordinance No. 16, Series of 2015 | The General Santos City Investment Code of 2015

environment by undertaking business practices that adhere to the country’s environmental laws, such as efficient solid waste pollution management, adopting technologies that reduce greenhouse gas emissions, and implementing climate change adaptation measures and disaster risk reduction and management, among others; and

3. compliance with all applicable labor laws and standards, including those relating to occupational health and safety.

d. On the procedure for the grant of incentives. – The procedure for the application, processing, and grant of applications for incentives shall be transparent and reasonable. No additional requirement shall be imposed unless there is categorical ample basis, reason or purpose for imposing the same. Where the applicant for registration anchors its application on its status as an entity registered under an Incentive Law with a Registering Agency, as defined in this Code, the procedure for its registration under this Code shall be simplified and shall be made mainly dependent on the fact of its registration with the Registering Agency.

TITLE IIDEFINITION OF TERMS

SECTION 5. DEFINITIONS. – As used in this ordinance, the hereunder terms shall be defined as follows:

a. “Applicant” refers to a business enterprise that seeks to avail incentives under this Code.

b. “Barangay Micro Business Enterprise”/“BMBE” is defined under the Barangay Micro Business Enterprises (BMBEs) Act of 2002 (Republic Act No. 9178), as any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00).

c. “Board” means the General Santos City Investment Board created under this Code, the powers and composition of which shall be as provided under Title IV.

d. “Board of Investments”/“BOI” refers to the implementing agency for Books One to Five of the Omnibus Investments Code (EO No. 226 dated 27 February 1987).

e. “Buildings” refer to permanent structures built onto the land usually used for habitation, commercial and industrial purposes and for other various uses and not mere superimpositions on the land.

f. “Cancellation” refers to an act of terminating the grant of incentives based on the commission of any of the offenses stated in Section 43 of this Code.

g. “Capitalization” refers to the total project cost which includes land, building, machineries, equipment, and working capital except where it pertains to a BMBE, in which case, the same shall be exclusive of the cost of the land.

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h. “Change of Ownership” refers to the transfer of the registered enterprise’s business interests, properties and other assets to another person by way of sale, merger, consolidation or any other mode of acquisition or conveyance.

i. “City” means the City of General Santos covering all areas within its territorial jurisdiction as provided by the law and its charter.

j. “Code” refers to the General Santos City Investment Code of 2015.

k. “Commercial Operation” refers to the actual conduct of the business operations or activity which involves production, manufacturing, processing, and buying or selling of goods and services or the exchange or attempt or offer to exchange goods and services for money or for anything of value.

l. “Date of Official Acceptance” refers to the date indicated in the official receipt issued by the City Treasurer’s Office for the payment of application.

m. “Date of Registration” refers to the date when the Certificate of Registration is issued by the Board, which information shall be recorded in a Registration Logbook to be maintained by the Board.

n. “Diversification Project” refers to a project of an existing enterprise that involves the introduction and production of a distinct line of products or services by an existing enterprise, whether or not a registered enterprise; provided, that to be considered distinct, it should require new investment in terms of machinery or equipment or would involve the use of new skills set not currently used in the existing product or services; provided further, that a new service or product may constitute a diversification even if such service or product is already within the scope of its original or existing business purposes.

o. “Existing Enterprises” are businesses legally operating in the city.

p. “Expansion Project” refers to a project of an existing enterprise involving installation of additional facilities/equipment that will result in the increase of the production capacity. Expansion for additional capacity shall be eligible for incentives if applicant has attained 85% utilization of its existing capacity.

q. “Improvement” is a valuable addition made to a property, including but not limited to buildings and machinery, or an amelioration in its condition, amounting to more than a mere repair or replacement of parts involving capital expenditures and labor, which is intended to enhance its value, beauty or utility or to adapt it for new or further purposes.

r. “Incentive Law” refers to a law, such as the Omnibus Investments Code, granting incentives to specific businesses at both the national and local levels, by virtue of the nature of their business activity pursued or the location where such business is going to be pursued or undertaken, as administered by a designated government agency or office (Registering Agency), such as the BOI.


s. “General Santos City Investment Priorities Plan”/“GSCIPP” means the over-all plan prepared by the GSCIC and approved by the Board which shall contain the General Santos City Investment Priority Areas, its general policies and its specific guidelines.

t. “General Santos City Investment Center”/“GSCIC” refers to the General Santos City Investment Center with the responsibilities and functions provided under Title III of this Code.

u. “General Santos City Investment Priority Areas”/“GSCIPAs” are investment areas or business activities identified by the Board to be priority investment areas in the city which are encouraged to be pursued by granting incentives to business enterprises.

v. “Large Enterprise” refers to a business with an asset size of more than Php 100,000,000.00.

w. “Local Staff” refers to a worker or personnel who is a bona fide resident of the city for at least six (6) months where proof of residency consists of the presentation of voter’s ID/Registration and a Barangay Clearance from the barangay where he resides. Where the eligibility of an applicant to avail of incentives is anchored on its ability to generate employment, it should meet the minimum ratio of Local Staff to non-Local Staff, as the Board may prescribe.

x. “Machinery” embraces machines, equipment, mechanical contrivances, instruments, appliance or apparatus which may or may not be attached, permanently or temporarily to the real property. It includes the physical facilities for production, the installations and appurtenant service facilities, those which are mobile, self-powered or self-propelled, and those not permanently attached to the real property which are actually, directly and exclusively used to meet the needs of the particular industry, business or activity and which by their very nature and purpose are designed for, or necessary to its manufacturing, commercial, industrial or agricultural purposes, without which such industry or facility cannot function.

y. “Micro, Small, and Medium Enterprises”/“MSMEs” refer to businesses that meet the criteria below and which are to engage in a business activity included in the GSCIPA:

By asset size:Micro Enterprise: Up to Php3,000,000.00Small Enterprise: Php3,000,001.00 – Php15,000,000.00Medium Enterprise: Php15,000,001.00 – Php100,000,000.00

Provided, that in the case of Micro Enterprises, including BMBEs, the land which has not officially contributed into the business as capital or purchased by the business shall not form part of the assets of the business for purposes of determining the asset size above.

The foregoing categories shall be modified based on the adjustments by the Micro, Small and Medium Enterprises Development (MSMED) Council created under the Magna Carta for MSMEs.

z. “Modernization or Rehabilitation Project” refers to a project of an existing enterprise that involves improvements in systems, processes equipment and/or facilities that must result in any of the following:

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1) At least 25% substantial reduction of production cost / cost of provision of the service; or 2) Upgrading of product/service quality or classification of the facility (e.g hospitals, hotels,

resorts) to a higher class in accordance with accreditation standards applicable to the industry concerned.

aa. “New Project” refers to a project/activity listed in the GSCIPA that has not started commercial operation or has operated for not more than one year within General Santos City as maybe determined by the Board, undertaken by:

1) A newly organized/formed enterprise that:i. has no common stockholders in any existing enterprise; or ii. has common stockholders in the existing enterprise but own not more than fifty

percent (50 of equity in the new enterprise; or iii. has common stockholders but will engage in an entirely distinct and separate activity.

2) An existing enterprise that shall engage in:i. An entirely distinct and different activity acting from its existing business operation; orii. The same activity provided it shall establish a new facility in an area not contiguous to

the premises of its existing project and with new investments.

bb. “Public-Private Partnership”/ “PPP” is a form of legally enforceable contract between the city and a private sector proponent, requiring new investments from the private sector proponent and transferring key risks to the private sector proponent in which payments are made in exchange for performance, for the purpose of delivering a service provided or intended to be provided by the city. PPP shall also include dispositions of an asset, facility, project owned, or entity created by the city to a private sector proponent; procurement of a service; assumption by a private sector proponent of a proprietary function of the City; grant of a concession or franchise to a private sector proponent by the city; or usage by the private sector proponent of public property owned or possessed by the city.

cc. “Project Study” refers to a project profile prescribed by the GSCIC which presents, among others, highlights of the projected financial viability and environmental and socio-economic impact of the proposed business.

dd. “Registered Enterprise” refers to any individual, partnership, cooperative, or corporation, whether a domestic or foreign corporation licensed to do business in the Philippines that has been issued a Certificate of Registration by the Board pursuant to this Code.

ee. “Registering Agency” refers to any other government agency/office/instrumentality that is authorized to administer incentives under and register and regulate enterprise that are enjoying incentives at the national level pursuant to an applicable Incentive Law, such as but not limited to the Bureau of Investment (BOI) and the Philippine Economic Zone Authority (PEZA).

ff. “Revocation” is the act of the Board which shall require the refund of all incentives availed of on the ground of fraudulent misrepresentation pursuant to Section 44 of this Code.

gg. “Total Assets” shall refer to all assets of a business activity or enterprise inclusive of those arising from loans.


TITLE IIITHE GENERAL SANTOS CITY INVESTMENT CENTER

SECTION 6. GENERAL SANTOS CITY INVESTMENT CENTER (GSCIC). –There shall be created a General Santos City Investment Center (GSCIC), a department that shall function as a one-stop-shop for investors performing the overall function of, but not limited to, investment promotions and servicing, business environment enhancement, and site development of the city.

It shall also serve as the technical office that shall assist the Board in the implementation of the provisions of this Code.

SECTION 7. LOCATION. – The GSCIC shall be located within the city’s central business district or any other location most appropriate to provide accessibility and attain optimum efficiency in the provision of services.

TITLE IVGENERAL SANTOS CITY INVESTMENT BOARD

SECTION 8. THE GENERAL SANTOS CITY INVESTMENT BOARD.– The Board is hereby created to implement the provisions of this Code.

SECTION 9. COMPOSITION OF THE BOARD. – The General Santos City Investment Board shall be composed of the following:

a. City Mayor as Chairperson – voting member;b. President of the General Santos City Chamber of Commerce and Industry, Inc. as Vice-

Chairperson – voting member;

Members of the Board:c. Department Head of the General Santos City Investment Center (GSCIC) – voting member;d. City Planning and Development Coordinator, City Planning and Development Office –

voting member; e. City Treasurer, City Treasurer’s Office – voting member;f. City Assessor, City Assessor’s Office – voting member;g. City Environment and Natural Resource Officer, City Environment and Natural Resources

Office (CENRO) – voting member;h. Sangguniang Panlungsod Chairperson of the Committee on Trade, Commerce and Industry –

voting member; i. President, City Bankers’ Association of General Santos (CBAGS) – voting member;j. Field Director, Department of Labor and Employment (DOLE) – voting member;k. City Director, Department of Trade and Industry in General Santos City – voting member; l. President, Small and Medium Enterprise Development Council, Inc. (SMEDCI) – voting

member;m. President, SOCSKSARGEN Federation of Fishing and Allied Industries, Inc. (SFFAII) – non-

voting member;n. Chairperson, General Santos City Tourism Council – non-voting member;o. President, Notre Dame Business Resource Center Foundation, Inc. – voting member;

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p. President, South Cotabato Chinese Chamber of Commerce and Industry, Inc. – non-voting member;

q. Sangguniang Panlungsod Chairperson of the Committee on Climate Change Adaptation and Mitigation – non-voting member;

On the first meeting, each member of the Board, through a written notice, may designate a permanent alternate representative in case of absence or unavailability. Permanent alternate representatives, upon their confirmation by the Chairperson, shall exercise the same duties and functions as members of the Board.

The Board may likewise invite, whenever necessary, representatives from pertinent local and national government offices, including but not limited to Regional Officers of the BOI and/or DTI, DOLE, DENR, and other relevant stakeholders for advice on their respective areas of expertise

The Board may recommend an increase or decrease of its membership to the Sangguniang Panlungsod as it deems necessary.

SECTION 10. MEETINGS AND QUORUM OF THE BOARD. – The Board shall meet quarterly on such day and time as they may fix and upon the call of the Chairperson whenever he deems it necessary. Notice of meetings shall be given to all members of the Board.

A majority of the voting members of the Board present shall constitute a quorum and the affirmative vote of a majority of the quorum shall be necessary for the exercise of its powers and the performance of its duties, including the approval of all decisions and policies issued by the Board.

SECTION 11. POWERS AND FUNCTIONS OF THE BOARD. – The functions of the Board are to establish a favorable and stable policy for business, encourage and support private sector investment and business retention and expansion. Pursuant to this, the Board is generally vested with the following powers:

a. Every two (2) years, review the GSCIPP eligible for incentives, taking into consideration the developmental needs of the city, relevant economic and technical factors of the city, available resources, prospects of an industry, among other relevant considerations;

b. Adopt an annual investments promotion program;c. Act on applications for registration of projects for availment of local incentives and for their

cancellation or revocation;d. Recommend to the Sangguniang Panlungsod any amendments to the Code;e. Establish cooperative undertakings with other local government units (LGUs), the private

sector, non-governmental organizations (NGOs) or other institutions as may be necessary;f. Facilitate resolution of issues concerning the implementation of this Code that may arise

between the Registered Enterprise and the city government agencies or other government agencies within sixty (60) calendar days after issues has been submitted for appropriate action;

g. Coordinate closely with other government agencies and/or private organizations in implementing the investments promotion programs of the city;

h. Coordinate and consult with the City Development Council (CDC) and other stakeholders in the formulation of GSCIPP, identification of GSCIPAs and the formulation of local incentives;

i. Perform such other tasks necessary and incidental to the performance of its functions; and


j. Render an annual report to the Mayor and the Sangguniang Panlungsod regarding the results of the operation of the Board and its on-going efforts to implement this Code and achieve its mandate.

SECTION 12. POWERS AND FUNCTIONS OF THE CHAIRPERSON OF THE BOARD. – The Chairperson of the Board shall have the following powers and functions:a. Preside over the regular and special meetings of the Board;b. Sign the Certificate of Registration; andc. Exercise such other powers and functions as the Board may direct to carry out the objectives of

this Code.

SECTION 13. POWERS AND FUNCTIONS OF THE VICE-CHAIRPERSON OF THE BOARD. – The Vice-Chairperson of the Board shall have the following powers and functions:a. Preside over the regular and special meetings of the Board in the absence of the Chairperson; b. Perform such other functions as may be necessary for and in behalf of the Chairperson; andc. Exercise such other powers and functions as the Board may direct to carry out the objectives of

this Code.

TITLE VGENERAL SANTOS CITY INVESTMENT PRIORITIES PLAN

SECTION 14. GENERAL SANTOS CITY INVESTMENT PRIORITIES PLAN. – In consultation with private sector stakeholders and appropriate government agencies, the GSCIC shall prepare and submit the General Santos City Investment Priorities Plan for approval of the Board not later than the end of September and in every two (2) years thereafter.

The main components of the GSCIPP shall be the GSCIPAs, the General Policies and Specific Guidelines.

SECTION 15. GENERAL SANTOS CITY INVESTMENT PRIORITY AREAS. – There shall be a General Santos City Investment Priority Areas to be contained in the GSCIPP. The GSCIPA shall be determined in accordance with the policies and criteria for the identification of priority investment areas and the grant of incentives provided under Section 4 of this Code. SECTION 16. GENERAL POLICIES. – The General Policies in the GSCIPP shall cover, but not limited to the following:a. Location restriction policyb. Multi-phased projects with multiple locationsc. Corporate social responsibilityd. Projects critical to the environmente. Public welfare consideration

SECTION 17. SPECIFIC GUIDELINES. – The GSCIPP shall provide for specific guidelines on the GSCIPAs, to include, but not limited to the specific type of business activities, documentary requirements to comply with relevant laws and compliance to applicable standards.

SECTION 18. APPROVAL OF THE GSC INVESTMENT PRIORITIES PLAN.– The Board, after due deliberation, shall declare the whole plan in effect through a resolution.

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Upon the effectivity of the plan, the City Mayor or Chairperson of the Board shall issue the necessary directives to all departments and units of the local government to ensure a synchronized and integrated manner of implementation.

SECTION 19. PUBLICATION.– The approved GSCIPP shall be published in at least one (1) local newspaper of general circulation for two (2) consecutive issues and in the official website of the City for at least one (1) month.

TITLE VIREGISTRATION OF ENTERPRISES

SECTION 20. REGISTRATION PREREQUISITE TO AVAILMENT OF INCENTIVES.–In all cases, those entitled to local incentives under the Incentive Laws shall complete their registration with the Board within three (3) months after they have secured their Certificate of Registration under the Registering Agency to avoid inconvenience and disallowance for the period prior to their registration with the Board.

SECTION 21. TYPES OF PROJECTS. – The following are the types of projects eligible for registration, provided they involve business activities included in the GSCIPA:a. New Projects;b. Expansion Projects;c. Modernization or Rehabilitation Projects; andd. Diversification Projects.

SECTION 22. QUALIFICATIONS.– To qualify with the registration under the Code, an applicant must comply with the following conditions:a. Business activity is included in the GSCIPA; b. The place of operation or production shall be in General Santos City;c. Undertake to employ at least eighty percent (80%) of construction workers and of employees

during commercial operations are local staff, except in cases, as verified by the GSCIC, when the expertise required is not available in the locality;

d. The applicant shall show proof of operational capability and financial capacity to undertake the project; and

e. In case of single proprietorship, the applicant is a citizen of the Republic of the Philippines. In case of partnership, corporation, association or cooperative, the applicant is organized under existing Philippine laws.

SECTION23. REQUIREMENTS. – The requirements for application for local incentives shall vary depending on whether or not the applicant has a Certificate of Registration from a Registering Agency pursuant to an Incentive Law.

a. General Requirements: 1. New Project

i. Official Receipt issued by the City Treasurer as payment of a non-refundable filing fee based on Table 1.1 of Section 24, of this Code;

ii. Three (3) copies of fully accomplished and notarized application form;iii. Three (3) copies of project study to include list of branches, subsidiaries, and/or


sister companies engaged in similar activity of the proposed investment and list of officers of the corporation and the persons responsible for the project.

iv. For corporations, Board Resolution or Letter of Intent of applicant enterprise authorizing the filing of the application for incentives with the Board and designating a representative for the purpose.

b. Expansion / Diversification / Modernization or Rehabilitation1. All requirements for new project;2. Mayor’s Permit of the existing enterprise;3. Certified true copy of the registration of the applicant to do business in the Philippines as

issued by the DTI, SEC, or the CDA, whichever is applicable;4. Latest Audited Financial Statement acknowledge by BIR;5. List of buildings, improvements and machineries used directly and exclusively in the

registered activity/activities of enterprise and copy of their tax declarations; and6. Such other information and/or documents that the Board may require.

c. Additional Requirements For Those Registered Under An Incentive Law1. Certified true copy of Certificate of Registration with the appropriate Registering Agency

pursuant to the applicable Incentive Law granting applicant’s business, investment incentives, including the terms and conditions of the same;

2. Copy of the feasibility study/Project Study submitted to the Registering Agency. SECTION 24. PROCEDURE. – The procedure for the processing of registration under this Code is as follows:

a. Filing of Applications. - All applications shall be filed with the GSCIC together with all the documentary requirements enumerated in the preceding section. Prior to acceptance of the application, the GSCIC shall evaluate the completeness of the application form and other requirements such that the applicant is advised immediately of any erroneous or incomplete documentary requirement. It is only upon the determination of completeness of the application form and the supporting documents that the application may be logged in the Registration Application Logbook and the application form is stamped “Received.” Upon receipt, the GSCIC shall issue an Order of Payment to pay a non-refundable filing fee based on the table provided hereunder.

Table 1.1. New Projects

CLASSIFICATION CAPITALIZATION FILING FEE

Micro Not exceeding Php 3 million None

Small Exceeding Php 3 million but not over Php15 million

Php 1,500.00

Medium Exceeding Php 15 million but not over Php 100 million

Php 3,000.00

Large Over Php 100 million Php 6,000.00

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Table 1.2. Expansion/ Modernization or Rehabilitation/ Diversification Projects

CLASSIFICATION ASSET FILING FEE

Micro Not exceeding Php 3 million None


Php 1,500.00


Php 3,000.00

Large Over Php 100 million Php 6,000.00

The date indicated in the official receipt issued by the City Treasurer’s Office shall be the Date of Official Acceptance.

b. Publication. - The application shall, after the Date of Official Acceptance, be published once in a newspaper of general circulation in the City at the applicant’s expense, indicating the name of the applicant, the GSCIPA in which the registered enterprise will engage, the asset size and location, except for Micro-Enterprises. However, Micro Enterprises shall be required to publish the facts of its application in a conspicuous place in the City Hall.

c. Registration. - Ten (10) days after publication and upon receipt of the copy thereof, the proposed project shall be evaluated by the GSCIC, which may conduct ocular inspection, if necessary. The results of the evaluation by and the recommendation of the GSCIC shall be submitted to the Board within forty (40) calendar days and shall be included in the agenda of the Board meeting. The Board shall approve or disapprove the application within twenty (20) calendar days upon receipt of the recommendation. The GSCIC shall inform the applicant in writing of the Board’s action on its application, together with the terms and conditions. Once approved, the Board through the GSCIC shall issue an Order of Payment for the non-refundable registration fee based on the table provided below:

Table 2.1. New Projects

CLASSIFICATION CAPITALIZATION REGISTRATION FEEMicro Not exceeding Php 3 million None


1/10 of 1% of project cost, but not less than Php 3,000.00; and not to exceed Php 15,000.00


Large Over Php 100 million


Table 2.2. Expansion/ Modernization or Rehabilitation/ Diversification Projects

CLASSIFICATION ASSET REGISTRATION FEEMicro Not exceeding Php 3 million None


1/10 of 1% of project cost, but not less than Php 3,000.00; and not to exceed Php 15,000.00


Large Over Php 100 million

Capitalization and assets referred to in the table shall be based on the project study of the project submitted by the applicant.

d. Issuance of Certificate of Registration. - Upon presentation of official receipt for the payment of registration, an enterprise shall be issued a Certificate of Registration by the Board through the GSCIC. It shall state, among others, the following:1. Name of the Registered Enterprise;2. The GSCIPA in which the registered enterprise will engage;3. The incentives granted and the respective term of each incentive; and4. The resolution of the Board citing the terms and conditions forming part of it.

The Certificate of Registration shall be issued not later than five (5) working days from the date of payment of registration fee. The fact of issuance of the Certificate of Registration under this Code shall be recorded in the Registration Book.

SECTION 25. CRITERIA FOR EVALUATION OF APPLICATION. – The following criteria will be considered in the evaluation of applications for registration under the GSCIPA:1. The extent to which materials, and other resources obtained from local sources are utilized;2. The extent to which direct employment for residents of the city is generated;3. The location and business address of the enterprise is within General Santos City and is aligned

to the pursuit of dispersal of industries in less-developed areas of the city; and4. The extent of environmental impact.

TITLE VIIINCENTIVES

SECTION 26. POLICIES IN THE ADMINISTRATION OF INCENTIVES.– Unless specifically provided under an applicable Incentive Law or the Local Government Code of 1991 (LGC), the grant of incentives shall be governed by the following general policies:

a. The grant of incentives shall not extend to fees and charges imposed for services rendered by the city, such as garbage fees, sanitary inspection fees, electrical inspection fees, mayor’s permit fees, building permit fees, and other similar fees except such fees provided herein; as well as rental for the use of public utilities owned and operated by the local government such as charges for actual consumption of water, electric power and toll fees for use of public roads and bridges and the like; and those levied for the use of government facilities and properties.

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. b. For new enterprise, incentives granted shall take effect upon updating of payments of all local

fees and taxes and from the date of registration or commercial operations, whichever comes later, until the lapse of the term of such incentive.

c. For existing enterprise, in case of change of ownership of the enterprise, the local incentives

which it is enjoying shall continue to be enjoyed by the enterprise provided that the terms and conditions of the registration of the project are assumed by the new owner. Any change in the controlling stakeholders of a Registered Enterprise shall be reported to the Board.

d. The local incentives to which a Registered Enterprise is entitled shall be limited to those

specified under its Certificate of Registration issued by the Board, regardless of the enumerated incentives under this Code.

SECTION 27. FISCAL INCENTIVES. – Registered Enterprise may be entitled to the following fiscal incentives; Provided that in each case, the actual incentives that a Registered Enterprise may enjoy shall be those which are specifically granted under its Certificate of Registration:

a. Local Business Tax Exemption (LBT Exemption)

Registered enterprises shall enjoy exemption from local business tax that is otherwise due on their gross receipts in accordance with the General Santos City Revenue Code. The exemption shall be for a term of at least three (3) years but not more than five (5) years. The actual duration of the LBT Exemption shall be determined by the Board based on the following criteria:

Table 3

CRITERIA MAXIMUM OF 5 YEARS MAXIMUM OF 4 YEARS MINIMUM OF 3 YEARS

Projected Num-ber of Local Staff

Over 75 51-75 10-50, except for Micro enterprises or BMBEs

Local raw material content

more than 20% more than 15% but less than 20%

less than 15%

Capitalization Php100,000,001 Php15,000,001 to Php100,000,000

up to Php15,000,000

Pollution Factor Negligible Minimal Average but fully compliant or higher than average but compliant

Location Based on locational policy of GSCIPP

In the event that Registered Enterprise meets different criteria, that which will entitle it to longer term of incentives shall be controlling.

The Applicant shall include the foregoing information and the basis thereof in its project study, for further verification by the GSCIC.


There shall be a list of less-developed areas and the corresponding preferred activities eligible for incentives, the criteria of which shall be identified by the Board in consultation with the private sector stakeholders and government agencies.

b. Real Property Tax Exemption (RPT Exemption) Buildings, improvements, machinery and equipment, excluding land, otherwise subject to real property tax directly and exclusively used in the registered activity of Registered Enterprise are exempted.

The real property tax exemption shall have the same duration as the LBT Exemption of the Registered Enterprise.

SECTION 28. NON-FISCAL INCENTIVES. – The Board, through the GSCIC, shall provide the following non-fiscal incentives to Registered Enterprises:

a. Assistance in site selection, negotiation for right of way and acquisition of permits and licenses from the different offices of the city government;

b. Joint venture partner identification and referral;c. Identification of possible source of required local labor and raw materials;d. Assistance and/or referral to technical and financial assistance programs available in the

national and local governments;e. Aftercare services that may be accorded to investors; andf. For Micro Enterprises or BMBEs, they shall be given opportunities to participate in LGU

organized trade fairs and exhibits, enterprise development, inclusion in business matching, and business plan preparation.

SECTION 29. OTHER INCENTIVES – There shall be a non-fiscal incentive offered to business enterprise locating within the Special Economic Zone and Tourism Enterprise Zone within General Santos City.

TITLE VIIICONDITIONS FOR AVAILMENT OF INCENTIVES

SECTION 30. GENERAL CONDITIONS.– Registered Enterprises shall abide with the provisions of this Code and on its terms and conditions specifically imposed in their respective Certificates of Registration. A Registered Enterprise shall continue to satisfy whatever criteria rendered it eligible for registration under this Code. Compliance with the continuing conditions for the availment of the incentives shall be subject to verification by the Board through the GSCIC. Non-compliance of a Registered Enterprise on its conditions shall be sufficient basis for the Board to exercise its authority under Title XII of this Code.

SECTION 31. VISITORIAL POWER AND ITS SCOPE.–The visitorial power vested to the Board through the GSCIC shall be exercised for the purpose of ensuring that the Registered Enterprises satisfy all the terms and conditions of its registration, including examination of books and records by the City Treasurer’s Office and assessment of real property by the City Assessor’s Office, and continue to meet or satisfy the basis or criteria that rendered them eligible for registration. The Board, through the GSCIC, shall have the authority to inspect the Registered Enterprise to verify that it is in fact using the technology or the local raw material that it presented.

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SECTION 32. CONTINUING ELIGIBILITY FOR REGISTRATION. – If the Registered Enterprise ceases to meet any of the said registration criteria that rendered it eligible for registration under this Code, the Board shall have the authority to act pursuant to Title XII of this Code.

SECTION 33. PERIODIC AND OTHER COMPLIANCE REQUIREMENTS.–Registered enterprise shall secure and comply with all the requirements to secure a business permit and renew the same annually. Except as expressly provided under this Code or the Incentive Law under which they are likewise registered, registered enterprise shall comply with all applicable laws as other enterprises engaged in the same business are required to comply with.

SECTION 34. REPORTORIALS. – Every registered enterprise shall submit to the Board the following records and documents within the time herein prescribed:

a. Quarterly report, within thirty (30) calendar days from the end of each quarter, on enterprise’s business operations including:1) gross sales or receipts;2) production volume and local raw materials utilization report; and3) report on number of employment of local staff;

b. Audited Annual Financial Statements, within thirty (30) calendar days after its submission to the Bureau of Internal Revenue (BIR);

c. Within thirty (30) calendar days from the end of each calendar year, copy of the Self-Monitoring Report in compliance to Environmental Compliance Certificate (ECC) requirements submitted to the DENR;

d. Annual report, within thirty (30) calendar days from the end of calendar year, pursuant to Title IX and X, documents which shall serve as proof in the conduct of CSR and Environmental Conservation programs; and

e. Within thirty (30) calendar days from the end of the succeeding quarter,1) Amendment of Articles of Incorporation and By-laws, Articles of Partnership, or Articles

of Cooperation; and/or2) Change of Board of Directors.

TITLE IXCORPORATE SOCIAL RESPONSIBILITY

SECTION 35. CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION.– Registered enterprises, except micro enterprises and BMBEs, must undertake Corporate Social Responsibility (CSR) activities categorized to wit:

a. Small Enterprise – starts within the 2nd year of operationb. Medium Enterprise – starts within the 1st year of operation c. Large Enterprise – starts within the 6th month of operation

SECTION 36. CORPORATE SOCIAL RESPONSIBILITY PROGRAMS.– Registered Enterprise may undertake CSR Programs from any of the following:


a. Urban Renewal, Greening or Re-greening, Climate Change Adaptation1) Rehabilitation and restoration of buildings or other structures in accordance with the urban

renewal or restoration plan of the city and applying green architecture;2) Reforestation;3) Urban greening, rehabilitation or landscaping of major road sides, areas with historical or

tourism value; areas in bio-geographic zones, especially key biodiversity areas, eroded slopes, street islands, parks, promenades, sidewalks, parking areas, among others.

b. Social Projects1) Housing for employees;2) Educational projects;3) Cultural heritage preservation;4) Programs for women, children, elderly, disabled, out of school youth and indigenous people;5) Community infrastructure projects aligned with the development plan of the city; and6) Such other projects or activities based on the development needs of the community where

the project is located; and

c. Other CSR Programs that the Board may allow.

TITLE XENVIRONMENTAL CONSERVATION

SECTION 37. ENVIRONMENTAL POLICY. –Environmentally critical projects or enterprises locating their activities or expansion in critical areas must abide to environmental laws and other related issuances (i.e. Presidential Decree No. 1586 or Philippine Environmental Impact Statement System).

Projects involving the handling, transporting, processing and storing of toxic, hazardous substances or nuclear waste shall be subject to strict regulations as provided under applicable local issuances and national laws.

SECTION 38. ENVIRONMENTAL ENHANCEMENT. – All registered enterprises shall be required to conduct tree growing programs, in coordination with CENRO, using the appropriate species on the following areas:a. Habitat Restoration Areas - These are areas where dense planting of fruit-bearing, flowering

and other similar species is needed. b. River Stabilization Areas – These areas where massive sedimentation of river channels has

occurred resulting in damage to the riverbanks where planting of trees with deep roots and large buttresses is recommended to stabilize and control sedimentation.

c. Eco-parks –These are areas where the planting of trees for educational and aesthetic purposes including genetically local species and reintroduction of native species takes place.

d. Roadside Beautification Areas–These are areas where design for road side greening and beautification through planting deep-rooted trees takes place.

e. Arboretum –This is a botanical garden where planting of different native forest tree species, including the endangered ones, takes place.

In all cases, at least 100 trees of the same species are required to be grown by the registered enterprise which shall be maintained by them within 3 years upon planting.

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TITLE XIBUDGET APPROPRIATIONS

SECTION 39. APPROPRIATIONS. – The expenditures to operationalize the Board, including honororia for its members, and the GSCIC shall be provided through regular or supplemental budget. The Sangguniang Panlungsod shall annually appropriate sufficient funds for the operations of the Board based on the approved work and financial plan submitted by the Board through the GSCIC. The Sangguniang Panlungsod shall also appropriate funds for the setting up of the GSCIC.

TITLE XIIPENALTIES

SECTION 40. PENALTY. – The Certificate of Registration issued under this Code may be cancelled or revoked upon any of the grounds provided in Section 41 and 42 hereof.

The cancellation of the Certificate of Registration shall mean cessation of the grant of incentives.

In case of revocation, it shall mean cessation of the grant of incentives and the Board shall require the refund of all incentives availed of. The value of the incentives shall be computed by the City Treasurer’s Office.

The effect of the cancellation or revocation of the Certificate of Registration of a Registered Enterprise shall commence at the day of the Board’s decision.

SECTION 41. GROUNDS FOR CANCELLATION. – Commission of any of the following offenses shall be a ground for cancellation of Certificate of Registration:a. Violation of the provisions of the Code and such other violation of the relevant laws, rules and

regulations or ordinances issued pursuant to or in relation to this Code;b. Non-compliance in the reportorial requirements for two (2) consecutive periods; c. Failure to commence operation based on the commitment date of actual commercial operation

or actual project development from approval of registration except for reasons due to fortuitous events; or

d. Violation of term or condition specified in the Certificate of Registration issued pursuant to this Code.

SECTION 42. GROUND FOR REVOCATION. - Fraudulent misrepresentation by an enterprise in relation to its application or in any document required to be submitted pursuant to this Code shall be sufficient ground for its revocation.

SECTION 43. PROCEDURE FOR CANCELLATION OR REVOCATION OF CERTIFICATE OF REGISTRATION. - The Board, upon a written complaint filed by any interested party or the GSCIC, may commence proceedings for the cancellation or revocation of the Certificate of Registration issued to an enterprise under this Code.

Within ten (10) working days from receipt of a written complaint, the Board shall assess whether a cause of action exists for cancellation or revocation based on such complaint. Should


it find that there is a cause of action for cancellation or revocation, the Board shall issue a show cause notice indicating the ground for cancellation or revocation and the specific circumstances constituting such ground, and directing the enterprise to explain within ten (10) working days from receipt of the notice why its Certificate of Registration should not be cancelled or revoked. A copy of the written complaint shall be attached to the show cause notice.

Within fifteen (15) working days from receipt of explanation of the enterprise together with its supporting documents, if any, the Board shall hear and decide after notifying the enterprise concerned. Within fifteen (15) days after the conduct of such hearing, the Board shall decide whether or not to cancel or revoke the Certificate of Registration based on the evidence on record. The enterprise concerned shall be notified in writing of the decision of the Board.

SECTION 44. MOTION FOR RECONSIDERATION. – The registered enterprise whose Certificate of Registration has been cancelled or revoked may file a motion for reconsideration with the Board within fifteen (15) days from receipt of the Board’s decision, otherwise the decision shall become final and executory.

TITLE XIIIFINAL PROVISIONS

SECTION 45. CONFIDENTIALITY OF APPLICATIONS. – All applications and their supporting documents filed under this Code shall be confidential and shall not be disclosed to any person, except those which shall be published pursuant to paragraph 2 of section 25 of this Code.

SECTION 46. SEPARABILITY CLAUSE. –If, for any reason, any portion or provision, section or part of the Code is declared not valid or suspended, such judgment shall not affect nor impair the remaining portions, provisions, sections, or parts hereof which shall remain or continue to be in full force and effect.

SECTION 47. CONSTRUCTION OF THIS CODE.–The provisions of this Code shall be construed in harmony with the provisions of existing laws such as but not limited to the Omnibus Investment Code, the Special Economic Zone Act, and the Foreign Investments Act.

SECTION 48. REPEALING CLAUSE. – The General Santos City Investment Code of 2004, as amended, and its Implementing Rules and Regulations and all other ordinances, rules and regulations or parts thereof which are in conflict or inconsistent with the provisions of this Code are hereby repealed, amended or modified accordingly.

SECTION 49. PROSPECTIVE APPLICATION. – Application of this Code shall not result in any impairment or diminution of incentives or imposition of any penalty of all enterprises already enjoying incentives from the city.

SECTION 50. TRANSITORY PROVISION. – Pending establishment of the GSCIC, the Economic Policy, Research, and Investments Division (EPRID) of the City Economic Management and Cooperative Development Office (CEMCDO) shall be tasked as the technical office that shall assist the Board in the implementation of the provisions of this Code. And further, pending the establishment of GSCIC, the Department Head of CEMCDO will sit as a member of

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the Board as voting member.

SECTION 51. REVIEW AND REVISION OF THE CODE. - The effectiveness of the Code shall be reviewed by the Board every three (3) years. In the event that majority of the Board finds the necessity to revise the Code, a resolution shall be passed creating a Technical Working Group to draft the revision within six (6) months after its creation. The latter, after drafting, shall endorse the draft proposal to the Board which shall likewise immediately endorse the same to the Sangguniang Panlungsod for appropriate action.

SECTION 52. DATE OF EFFECTIVITY. – This Code shall take effect thirty (30) days after its publication once a week for two (2) consecutive weeks in a newspaper of general circulation.

Enacted by the 17th Sangguniang Panlungsod, City of General Santos on its 100th Regularession held on July 28, 2015.

CERTIFIED CORRECT: ATTESTED BY:

(Sgd.) ATTY. ROSENDO A. ROQUE (Sgd.) EDUARDO D. LEYSON IVSecretary to the Sanggunian City Councilor and Presiding Officer

Approved by His Honor, the City Mayor on August 8, 2015.

(Sgd.) RONNEL C. RIVERACity Mayor


office of the ci office of the city mayor

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