The Sultan Kudarat Provincial The Sultan Kudarat Provincial Investment Code of 2007Investment Code of 2007

SKIPC of 2007SKIPC of 2007

CHAPTER ICHAPTER ITITLE AND DECLARATION OF POLICIESTITLE AND DECLARATION OF POLICIES

Section 1. Title. Section 1. Title. – This Ordinance shall be – This Ordinance shall be known as the known as the Sultan Kudarat Provincial Sultan Kudarat Provincial Investment Code of 2007Investment Code of 2007 or or SKPIC of SKPIC of 20072007 for brevity. for brevity.

Section 2. Declaration of Investment Section 2. Declaration of Investment Policies.Policies.

– – 1. This Investment Code is a statement of policy by the 1. This Investment Code is a statement of policy by the Provincial Government of Sultan Kudarat, pursuant to Provincial Government of Sultan Kudarat, pursuant to Omnibus Investment Act of 1996 (E.O. 226), to encourage Omnibus Investment Act of 1996 (E.O. 226), to encourage and guide development investment in the province of and guide development investment in the province of Sultan Kudarat. Thus, it is hereby declared the policy of the Sultan Kudarat. Thus, it is hereby declared the policy of the Provincial Government of Sultan Kudarat to promote, Provincial Government of Sultan Kudarat to promote, strengthen and encourage the growth and development of strengthen and encourage the growth and development of industries and relevant economic activities in the industries and relevant economic activities in the productive sectors of the province which are globally productive sectors of the province which are globally competitive, culture-sensitive and environmentally sound, competitive, culture-sensitive and environmentally sound, particularly in particularly in tourism, manufacturing, production, tourism, manufacturing, production, processing, energy development, agro-industrial, agro-processing, energy development, agro-industrial, agro-forestry industry and agricultureforestry industry and agriculture

. To this end, the Provincial Government of . To this end, the Provincial Government of Sultan Kudarat shall endeavor to spur the Sultan Kudarat shall endeavor to spur the growth and development of various growth and development of various industries and support services through industries and support services through sound economic policies, laws, ordinances sound economic policies, laws, ordinances throughout the Province thereby attaining throughout the Province thereby attaining countryside economic stability, growth for countryside economic stability, growth for the province and improvement of the province and improvement of constituents’ quality of life.constituents’ quality of life.

Moreover, it shall also be the policy of the Province of Sultan Kudarat:Moreover, it shall also be the policy of the Province of Sultan Kudarat:a) To attract, promote and welcome productive investment in business a) To attract, promote and welcome productive investment in business

activities which will significantly contribute to the industrialization and activities which will significantly contribute to the industrialization and socio- economic development to the extent allowed by the socio- economic development to the extent allowed by the Constitution and relevant laws. However, emphasis is given for this Constitution and relevant laws. However, emphasis is given for this investments not to give undue advantage to new investors to the investments not to give undue advantage to new investors to the detriment of existing enterprises engaged in the same or similar line of detriment of existing enterprises engaged in the same or similar line of economic activity and not to compromise nor impose upon the people’s economic activity and not to compromise nor impose upon the people’s socio-cultural values;socio-cultural values;

b) To encourage investments in enterprises that significantly expand b) To encourage investments in enterprises that significantly expand livelihood and the employment opportunities for Sultan Kudaratnons livelihood and the employment opportunities for Sultan Kudaratnons and enhance economic value of fast products, promote the welfare of and enhance economic value of fast products, promote the welfare of Provincial consumers and transfer relevant technologies in agriculture, Provincial consumers and transfer relevant technologies in agriculture, industry and support services;industry and support services;

c) To encourage joint ventures between commercial enterprises and c) To encourage joint ventures between commercial enterprises and farmers association or cooperative as a strategy to modernize farmers association or cooperative as a strategy to modernize agriculture and improve its competitiveness.agriculture and improve its competitiveness.

d) To promote the marketing of Sultan Kudarat products in order to d) To promote the marketing of Sultan Kudarat products in order to maximize production, attain self-sufficiency and optimal productivity;maximize production, attain self-sufficiency and optimal productivity;

e) To promote Sultan Kudarat Province as a favorable investment e) To promote Sultan Kudarat Province as a favorable investment destination with adequate power, adequate water resources, free of destination with adequate power, adequate water resources, free of congestion and pollution, and easily accessible to Asia Pacific region congestion and pollution, and easily accessible to Asia Pacific region and other global markets;and other global markets;

f) To promote the active participation of non-government organizations f) To promote the active participation of non-government organizations and the private sector as partners and catalysts in achieving the and the private sector as partners and catalysts in achieving the development goals of the province; anddevelopment goals of the province; and

g) To be able to sustain investment in the Province, ensure its proper g) To be able to sustain investment in the Province, ensure its proper implementation and assure investors of peace and order for the implementation and assure investors of peace and order for the economic upliftment of the people.economic upliftment of the people.

CHAPTER IICHAPTER IIPURPOSE AND OBJECTIVESPURPOSE AND OBJECTIVES

SECTION 3. Purpose.SECTION 3. Purpose. Its purpose is to inform Its purpose is to inform potential investors and others responsible potential investors and others responsible for planning, promoting, or encouraging for planning, promoting, or encouraging investment in the Province of Sultan investment in the Province of Sultan Kudarat, of the following:Kudarat, of the following:

PURPOSEPURPOSE

a) The investments and activities which merit a) The investments and activities which merit encouragement;encouragement;

b) The priorities attached to particular b) The priorities attached to particular investments and activities;investments and activities;

c) The criteria by which enterprises may be c) The criteria by which enterprises may be evaluated for approval to carry on a evaluated for approval to carry on a business in the Province of Sultan Kudarat.business in the Province of Sultan Kudarat.

SECTION 4. Objectives. SECTION 4. Objectives. – In pursuance of the – In pursuance of the policy stated in Section 2 hereof, the following shall policy stated in Section 2 hereof, the following shall

be the objectives of this Code:be the objectives of this Code:

a) To encourage Filipino and foreign a) To encourage Filipino and foreign investments or joint venture tie-up in investments or joint venture tie-up in projects to develop agricultural, agro-projects to develop agricultural, agro-industrial, industrial and manufacturing industrial, industrial and manufacturing industries which will bring about greater industries which will bring about greater economic stability, provide more economic stability, provide more opportunities for employment, and raise the opportunities for employment, and raise the standard of living of the people;standard of living of the people;

b) To welcome and encourage domestic and b) To welcome and encourage domestic and foreign investors to establish enterprises foreign investors to establish enterprises that are capital intensive utilizing a that are capital intensive utilizing a substantial amount of human resource/labor substantial amount of human resource/labor available in the province;available in the province;

c) To actively encourage and promote the c) To actively encourage and promote the optimum utilization of domestic raw optimum utilization of domestic raw materials available in the Province without materials available in the Province without necessarily resulting to necessarily resulting to environmental/ecological degradation;environmental/ecological degradation;

d) To provide fiscal and non-fiscal incentives d) To provide fiscal and non-fiscal incentives to local and foreign investors and encourage to local and foreign investors and encourage them to establish business in Sultan Kudarat them to establish business in Sultan Kudarat Province;Province;

e) To develop markets for Sultan Kudarat e) To develop markets for Sultan Kudarat products in order to attain a rising level of products in order to attain a rising level of production and employment, hasten the production and employment, hasten the economic development in the province economic development in the province and assure that the benefits of development and assure that the benefits of development accrue to the Filipino people, in general and accrue to the Filipino people, in general and Sultan Kudaratnons, in particular; andSultan Kudaratnons, in particular; and

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

CHAPTER IIICHAPTER IIISCOPE, APPLICATION, AND RULES ON INTERPRETATIONSCOPE, APPLICATION, AND RULES ON INTERPRETATION

SECTION 5. Scope and Application.SECTION 5. Scope and Application. - This - This Code shall apply to all persons, entities or Code shall apply to all persons, entities or enterprises, belonging to small, medium and enterprises, belonging to small, medium and large-scale categories in preferred areas of large-scale categories in preferred areas of investments in agribusiness, eco-tourism investments in agribusiness, eco-tourism and services and other areas of investments and services and other areas of investments as may be determined from time to time by as may be determined from time to time by the Board.the Board.

SECTION 6. Rules on Interpretation. SECTION 6. Rules on Interpretation. – Any – Any conflicts or controversies arising under the Code conflicts or controversies arising under the Code shall be resolved on the basis of applicable legal shall be resolved on the basis of applicable legal provisions or jurisprudence and liberally construed provisions or jurisprudence and liberally construed to carry out the objectives of this Code. As to all to carry out the objectives of this Code. As to all doubts and/or conflicts concerning the benefits, doubts and/or conflicts concerning the benefits, privileges, and incentives granted under this Code privileges, and incentives granted under this Code or in other local ordinances enacted for the or in other local ordinances enacted for the purpose of encouraging investment, it shall be purpose of encouraging investment, it shall be resolved resolved in favor of the investorin favor of the investor..

CHAPTER IVCHAPTER IV DEFINITION OF TERMS DEFINITION OF TERMS

SECTION 7 . Definition of Terms. SECTION 7 . Definition of Terms. - When - When used in this Code, the following terms, used in this Code, the following terms, acronyms and phrases shall mean as acronyms and phrases shall mean as follows:follows:

a) a) "SKIPC""SKIPC" shall refer to the Sultan Kudarat shall refer to the Sultan Kudarat Investment Promotion Center created under Investment Promotion Center created under this Code that serves as the Secretariat and this Code that serves as the Secretariat and implementing arm of the Board;implementing arm of the Board;

b) b) “Board"“Board" shall refer to the Sultan Kudarat shall refer to the Sultan Kudarat Investment Board (SKIB);Investment Board (SKIB);

c) c) "Code""Code" shall refer to the Sultan Kudarat shall refer to the Sultan Kudarat Provincial Investment Code of 2007;Provincial Investment Code of 2007;

d) d) "Province""Province" shall refer to the Province of shall refer to the Province of Sultan Kudarat covering all the areas within Sultan Kudarat covering all the areas within its territorial jurisdiction now existing or its territorial jurisdiction now existing or hereinafter acquired, as provided for by law;hereinafter acquired, as provided for by law;

e) “e) “Preferred or Priority Investment Area” Preferred or Priority Investment Area” shall shall mean the economic activities that the Board shall mean the economic activities that the Board shall have determined and which the Sangguniang have determined and which the Sangguniang Panlalawigan shall have approved, and declared Panlalawigan shall have approved, and declared as such and where investors are encouraged to as such and where investors are encouraged to infuse investments and actualize investment infuse investments and actualize investment projects.projects.

f) f) "Existing enterprises""Existing enterprises" shall refer to those shall refer to those establishment or enterprises whose places of establishment or enterprises whose places of operation or production are physically located operation or production are physically located within the territorial jurisdiction of Sultan Kudarat;within the territorial jurisdiction of Sultan Kudarat;

g) g) "Expansion projects""Expansion projects" include modernization and include modernization and rehabilitation, and shall mean an increase of rehabilitation, and shall mean an increase of existing volume or value of production, or existing volume or value of production, or upgrading the quality of registered product or upgrading the quality of registered product or utilization of inefficient or idle equipment, under utilization of inefficient or idle equipment, under such guidelines as the Board may adopt;such guidelines as the Board may adopt;

h) h) "Incentives""Incentives" shall refer to fiscal and non-fiscal shall refer to fiscal and non-fiscal incentives as provided for in this Code;incentives as provided for in this Code;

i) i) "Local Personnel or Worker""Local Personnel or Worker" refers to a person refers to a person who is a bonafide resident of the Province of who is a bonafide resident of the Province of Sultan Kudarat employed in an enterprise Sultan Kudarat employed in an enterprise registered under this Code;registered under this Code;

j) j) “Green Investment Enterprises” “Green Investment Enterprises” shall refer to shall refer to investors/enterprises availing incentives provided investors/enterprises availing incentives provided for by this Code although they don’t fall under any for by this Code although they don’t fall under any of the categories set forth in Sec. 21 of the same of the categories set forth in Sec. 21 of the same provided, however, they undertake to repaint, provided, however, they undertake to repaint, regreen, landscape and/or produce organic regreen, landscape and/or produce organic fertilizers;fertilizers;

k) k) "New investors/enterprises""New investors/enterprises" shall refer to shall refer to investors or enterprises that have not or are not investors or enterprises that have not or are not currently engaged in any kind or type of business currently engaged in any kind or type of business in Sultan Kudarat Province but intend to, or in Sultan Kudarat Province but intend to, or actually established, their place of operation or actually established, their place of operation or production in the territorial jurisdiction of Sultan production in the territorial jurisdiction of Sultan Kudarat Province;Kudarat Province;

l) l) "Registered enterprises""Registered enterprises" refer to enterprises or refer to enterprises or businesses registered in accordance with the businesses registered in accordance with the provisions of the Code.provisions of the Code.

m) m) “Bona-fide Resident“Bona-fide Resident” shall refer to a person with six (6) ” shall refer to a person with six (6) months residency in any of the component months residency in any of the component municipalities/city of Sultan Kudarat Province, 18 years of municipalities/city of Sultan Kudarat Province, 18 years of age and above, and a duly registered voter.age and above, and a duly registered voter.

n) n) “Small Scale Enterprise”“Small Scale Enterprise” shall refer to an enterprise with shall refer to an enterprise with a capitalization of up to Fifteen Million Pesos a capitalization of up to Fifteen Million Pesos (P15,000,000.00).(P15,000,000.00).

o)o) “Medium Scale Enterprise” “Medium Scale Enterprise” shall refer to an enterprise shall refer to an enterprise with a capitalization of Fifteen Million and One with a capitalization of Fifteen Million and One (P15,000,001.00) Pesos to One Hundred Million Pesos (P15,000,001.00) Pesos to One Hundred Million Pesos (P100,000,000.00).(P100,000,000.00).

p) p) “Large Scale Enterprise”“Large Scale Enterprise” shall refer to shall refer to industries with a capitalization of One industries with a capitalization of One Hundred Million and One PesosHundred Million and One Pesos

(P 100,000,001.00).(P 100,000,001.00).

CHAPTER VCHAPTER V SULTAN KUDARAT INVESTMENT BOARD (SKIB) SULTAN KUDARAT INVESTMENT BOARD (SKIB)

SECTION 8. Its Creation.SECTION 8. Its Creation. – There shall be – There shall be created a created a Sultan Kudarat Investment Sultan Kudarat Investment Board Board which shall recommend policies and which shall recommend policies and implement the provisions of this Code and implement the provisions of this Code and shall, hereafter, be referred to as the Board.shall, hereafter, be referred to as the Board.

SECTION 9. Composition of the SECTION 9. Composition of the Board.Board. - -

The Board shall be composed of theThe Board shall be composed of the

following:following:

Chairman : Provincial GovernorChairman : Provincial Governor

Co-Chairman : President, Sultan Kudarat Chamber Co-Chairman : President, Sultan Kudarat Chamber of Commerce and of Commerce and

Industry Industry

Members :Members :

a) Provincial Administratora) Provincial Administratorb) Sangguniang Panlalawigan/Board Secretaryb) Sangguniang Panlalawigan/Board Secretaryc) Sangguniang Panlalawigan Member – Chairman, Committee on Trade c) Sangguniang Panlalawigan Member – Chairman, Committee on Trade and Industryand Industryd) Sangguniang Panlalawigan Member – Chairman, Committee on Labord) Sangguniang Panlalawigan Member – Chairman, Committee on Labore) Sangguniang Panlalawigan Member – Chairman, Committee on e) Sangguniang Panlalawigan Member – Chairman, Committee on TourismTourismf) Sangguniang Panlalawigan Member – Chairman, Committee on f) Sangguniang Panlalawigan Member – Chairman, Committee on AgricultureAgricultureg) Provincial Planning and Development Coordinatorg) Provincial Planning and Development Coordinatorh)h) Provincial AgriculturistProvincial Agriculturisti)i) Provincial VeterinarianProvincial Veterinarian

j) Provincial Tourism Officerj) Provincial Tourism Officer k) Provincial Director, Department of Trade and Industryk) Provincial Director, Department of Trade and Industry l) Provincial Director, TESDAl) Provincial Director, TESDA m) Provincial Director, DOLEm) Provincial Director, DOLE n) President, Mayor’s League of the Philippines-Sultan Kudarat n) President, Mayor’s League of the Philippines-Sultan Kudarat

Chapter,Chapter, o) President of Sultan Kudarat Bankers Associationo) President of Sultan Kudarat Bankers Association p) Representative, Manufacturing Sector, as appointed by the p) Representative, Manufacturing Sector, as appointed by the

Chairman of the BoardChairman of the Board q) Two Representative, Agricultural Sector, as appointed by the q) Two Representative, Agricultural Sector, as appointed by the

Chairman of the BoardChairman of the Board r) Representative of accredited Non-Government Organizations r) Representative of accredited Non-Government Organizations

(NGOs), preferably the President of the Association of Sultan Kudarat (NGOs), preferably the President of the Association of Sultan Kudarat NGOsNGOs

SECTION 10.SECTION 10. Increase and Decrease of Increase and Decrease of Membership.Membership. The membership of the Board may The membership of the Board may be increased or decreased by the Sangguniang be increased or decreased by the Sangguniang Panlalawigan upon the recommendation of the Panlalawigan upon the recommendation of the Board for the effective implementation of the Board for the effective implementation of the Code.Code.

SECTION 11. Term of officeSECTION 11. Term of office – The term of office of – The term of office of the members of the Board shall be coterminous the members of the Board shall be coterminous with the term of office of local officials without with the term of office of local officials without prejudice to their reappointment by the successor prejudice to their reappointment by the successor Provincial Governor.Provincial Governor.

SECTION 12. Board Meetings and SECTION 12. Board Meetings and Quorum.Quorum.

- Within sixty (60) days upon approval of this Code, - Within sixty (60) days upon approval of this Code, the Provincial Governor, in his capacity as the Provincial Governor, in his capacity as Chairman, shall convene the Board after Chairman, shall convene the Board after appointing the members mentioned in Sec. 9 appointing the members mentioned in Sec. 9 hereof. The Board shall meet at least once in hereof. The Board shall meet at least once in every quarter or as often as may be necessary, on every quarter or as often as may be necessary, on such a day and time as it may fix or as often as such a day and time as it may fix or as often as necessary if called upon by the Chairperson.. The necessary if called upon by the Chairperson.. The presence of majority of its voting members shall presence of majority of its voting members shall constitute a quorum and a majority of the quorum constitute a quorum and a majority of the quorum of a meeting shall be required to exercise its of a meeting shall be required to exercise its powers and perform its functions.powers and perform its functions.

SECTION 13. Powers and SECTION 13. Powers and Functions of the Board.Functions of the Board.

– – The primary function of the Board shall be to The primary function of the Board shall be to establish a favorable and stable policy on establish a favorable and stable policy on business climate which will encourage and business climate which will encourage and support private sector investments and the support private sector investments and the operation of business activities consistent operation of business activities consistent with the development and environmental with the development and environmental needs of the Province. Pursuant to this, the needs of the Province. Pursuant to this, the Board shall be vested with the following Board shall be vested with the following powers and functions:powers and functions:

(a) To promulgate such rules and regulations (a) To promulgate such rules and regulations as may be necessary to implement the as may be necessary to implement the intent and provisions of this Code, taking intent and provisions of this Code, taking into consideration the holistic development into consideration the holistic development by safeguarding the well-being of the social, by safeguarding the well-being of the social, cultural and ecological life of the community;cultural and ecological life of the community;

(b) To conduct economic and technical (b) To conduct economic and technical studies in order to identify areas to be studies in order to identify areas to be promoted, appropriate incentives and promoted, appropriate incentives and government support measures to be government support measures to be extended in order to attract investors;extended in order to attract investors;

(c) To come up with a short (1-2 years) and (c) To come up with a short (1-2 years) and medium (3-5 years) term investment medium (3-5 years) term investment promotions specifying investment priority promotions specifying investment priority areas;areas;

(d) To create the necessary organizational (d) To create the necessary organizational unit(s) to successfully implement the unit(s) to successfully implement the provisions of this Code, such as but not provisions of this Code, such as but not limited to the “Sultan Kudarat Investment limited to the “Sultan Kudarat Investment Promotion Center (SKIPC)”;Promotion Center (SKIPC)”;

e) To supervise the operations and activities of the e) To supervise the operations and activities of the Sultan Kudarat Investment Promotion Center Sultan Kudarat Investment Promotion Center (SKIPC) for the effective implementation of the (SKIPC) for the effective implementation of the provisions of this Code;provisions of this Code;

f) To evaluate and decide on the recommendation of f) To evaluate and decide on the recommendation of the SKIPC pertaining to the the SKIPC pertaining to the cancellation/revocation and or imposition of cancellation/revocation and or imposition of fines/penalties due to violations made by fines/penalties due to violations made by registered enterprises as provided in this Code;registered enterprises as provided in this Code;

g) To review and update the fiscal and non-g) To review and update the fiscal and non-fiscal incentives granted to registered fiscal incentives granted to registered enterprises under this Code;enterprises under this Code;

h) To source out additional budgetary h) To source out additional budgetary requirement for the implementation of this requirement for the implementation of this Code;Code;

i) To review the investment policies set forth in i) To review the investment policies set forth in this Code, and formulate and recommend this Code, and formulate and recommend necessary amendments and revisions necessary amendments and revisions thereto, if there is any, to the Sangguniang thereto, if there is any, to the Sangguniang Panlalawigan for its consideration; andPanlalawigan for its consideration; and

j) To enter into an agreement with other government agencies j) To enter into an agreement with other government agencies and/or private organizations facilitating and implementing and/or private organizations facilitating and implementing systems, procedures, requirements and facilitating systems, procedures, requirements and facilitating investments, and other support services for the Sultan investments, and other support services for the Sultan Kudarat Investment Promotions Program, subject to the Kudarat Investment Promotions Program, subject to the authority given by the authority given by the Sangguniang Panlalawigan in Sangguniang Panlalawigan in accordance with RA 7160, otherwise known as the Local accordance with RA 7160, otherwise known as the Local Government Code of 1991Government Code of 1991; and; and

k) To perform such other functions as may be deemed k) To perform such other functions as may be deemed necessary for the successful implementation of this Code.necessary for the successful implementation of this Code.

SECTION 14. Powers and Functions of the SECTION 14. Powers and Functions of the Chairperson. Chairperson. – The Chairperson of the Committee – The Chairperson of the Committee

shall have the following powers and duties:shall have the following powers and duties:

(a) To preside over the regular and special (a) To preside over the regular and special meetings of the Committee;meetings of the Committee;

(b) To approve applications of qualified (b) To approve applications of qualified applicants in accordance with the rules and applicants in accordance with the rules and regulations of this Code; andregulations of this Code; and

(c) Generally, to exercise such other powers (c) Generally, to exercise such other powers and perform such other duties as may be and perform such other duties as may be necessary to carry out the objectives of this necessary to carry out the objectives of this Code.Code.

SECTION 15. Powers and Functions of the Vice SECTION 15. Powers and Functions of the Vice Chairperson. Chairperson. - The Vice Chairperson of the - The Vice Chairperson of the Committee shall have the following duties:Committee shall have the following duties:

(a) To preside over the regular and special (a) To preside over the regular and special meetings of the Committee in the absence meetings of the Committee in the absence of the Chairperson; andof the Chairperson; and

(b) To perform such other duties of the (b) To perform such other duties of the Chairperson in the absence of the latter, and Chairperson in the absence of the latter, and such other duties as may be necessary and such other duties as may be necessary and required by the Board.required by the Board.

CHAPTER VICHAPTER VI THE SULTAN KUDARAT INVESTMENT THE SULTAN KUDARAT INVESTMENT

PROMOTION CENTER (SKIPC)PROMOTION CENTER (SKIPC)

SECTION 16. Timeframe for the Establishment SECTION 16. Timeframe for the Establishment and Existence of the Sultan Kudarat and Existence of the Sultan Kudarat Investment Promotion Center – Investment Promotion Center – Immediately Immediately within sixty (60) days after the day the Board within sixty (60) days after the day the Board had been constituted, the Sangguniang had been constituted, the Sangguniang Panlalawigan, through enactment of an Panlalawigan, through enactment of an Resolution/Ordinance shall create the Sultan Resolution/Ordinance shall create the Sultan Kudarat Investment Promotion Center (SKIPC), Kudarat Investment Promotion Center (SKIPC), providing therefore its manpower, logistical and providing therefore its manpower, logistical and funding requirements, in accordance with existing funding requirements, in accordance with existing laws, rules, and regulations. laws, rules, and regulations.

The SKIPC shall be classified as regular The SKIPC shall be classified as regular office in the Provincial Government of Sultan office in the Provincial Government of Sultan Kudarat. As such, its existence shall be Kudarat. As such, its existence shall be categorized as Permanent and may only be categorized as Permanent and may only be dissolved upon the unanimous recommendation dissolved upon the unanimous recommendation of the Board and upon the approval of of the Board and upon the approval of at least two-thirds vote of the at least two-thirds vote of the SangguniangPanlalawigan. SangguniangPanlalawigan.

SECTION 17. Staff ComplementSECTION 17. Staff Complement – The following positions – The following positions shall be created to compose the staff complement of the shall be created to compose the staff complement of the

Sultan Kudarat Investment Promotion Center:Sultan Kudarat Investment Promotion Center:

1)One (1) Economist IV (SG 22);1)One (1) Economist IV (SG 22); 2) Two (2) Clerks II (SG 4); 2) Two (2) Clerks II (SG 4); 3) One (1) Bookbinder II (SG 4); 3) One (1) Bookbinder II (SG 4);

4) One (1) Messenger I (SG 2); and4) One (1) Messenger I (SG 2); and 5) Other necessary positions that the 5) Other necessary positions that the Board may recommend to the Sangguniang Board may recommend to the Sangguniang Panlalawigan.Panlalawigan.

Should there be no available source to fund said Should there be no available source to fund said creation, employees with appropriate creation, employees with appropriate competency and skills be designated to competency and skills be designated to perform the duties & functions attached to the perform the duties & functions attached to the aforementioned positions so as not to hinder aforementioned positions so as not to hinder the implementation of the Code and not to set the implementation of the Code and not to set naught the objectives and principles underlying naught the objectives and principles underlying therein.therein.

SECTION 18. Duties and Functions of Sultan Kudarat Investment Promotion SECTION 18. Duties and Functions of Sultan Kudarat Investment Promotion Center (SKIPC). Center (SKIPC). The Sultan Kudarat Investment Promotion Center, hereinafter The Sultan Kudarat Investment Promotion Center, hereinafter referred to as SKIPC, will serve as the Secretariat of the Board and shall take an referred to as SKIPC, will serve as the Secretariat of the Board and shall take an active role in implementing this Code. In addition, SKIPC shall have the following active role in implementing this Code. In addition, SKIPC shall have the following duties and functions:duties and functions:

a) To undertake pro-active market development and investment promotion a) To undertake pro-active market development and investment promotion activities;activities;

b) To implement the annual investment promotions and development plan as b) To implement the annual investment promotions and development plan as formulated and approved by the Board;formulated and approved by the Board;

c) To serve as one - stop accepting, processing and evaluating all c) To serve as one - stop accepting, processing and evaluating all applications for registration for the availment of the local incentives and submit applications for registration for the availment of the local incentives and submit its recommendation to the Board within ten (10) working days from the receipt of its recommendation to the Board within ten (10) working days from the receipt of application; application;

d) To assist in (1) securing licenses and permits, (2) arranging for the availment of d) To assist in (1) securing licenses and permits, (2) arranging for the availment of local and national government incentives, and (3) identifying business or joint local and national government incentives, and (3) identifying business or joint venture partners, raw materials suppliers, possible business sites and other venture partners, raw materials suppliers, possible business sites and other requirements of existing and potential investors and enterprises;requirements of existing and potential investors and enterprises;

e) To establish and maintain data bank on general business information, e) To establish and maintain data bank on general business information, information on economic activities, available technology, financing sources and information on economic activities, available technology, financing sources and other relevant data or information; other relevant data or information;

f) To conduct appropriate and relevant studies, gather and analyze f) To conduct appropriate and relevant studies, gather and analyze pertinent facts and figures, and inform the Board on international, pertinent facts and figures, and inform the Board on international, national and local issues affecting the dynamics of investments; and to national and local issues affecting the dynamics of investments; and to initiate, organize and participate in promotional activities, such as initiate, organize and participate in promotional activities, such as exhibitions, conferences and seminar for the stimulation of exhibitions, conferences and seminar for the stimulation of investments;investments;

g) To establish and maintain networking relations with counterpart g) To establish and maintain networking relations with counterpart investment promotion organizations and coordinate with support investment promotion organizations and coordinate with support agencies of government and the private sector in investment agencies of government and the private sector in investment promotions efforts;promotions efforts;

h) To spearhead the production, publication and dissemination h) To spearhead the production, publication and dissemination of investment promotions collaterals and whenever needed, of investment promotions collaterals and whenever needed, conduct briefings to investors and other interested parties;conduct briefings to investors and other interested parties;

i) To represent the Province of Sultan Kudarat in trade and i) To represent the Province of Sultan Kudarat in trade and investments meetings, conferences, for a, conventions, investments meetings, conferences, for a, conventions, and other similar gatherings in both domestic and foreign and other similar gatherings in both domestic and foreign venues whenever so directed by the Board;venues whenever so directed by the Board;

j) To build the competence of SKIPC staff to conduct j) To build the competence of SKIPC staff to conduct investment and environmental management promotion investment and environmental management promotion functions;functions;

k) To collate, analyze and compile pertinent data and k) To collate, analyze and compile pertinent data and information and studies concerning areas that have been information and studies concerning areas that have been or may be declared as “Preferred Areas of Investment” by or may be declared as “Preferred Areas of Investment” by the Board;the Board;

l) To recommend to the Board any modification/amendments l) To recommend to the Board any modification/amendments to existing legislation and procedures on local investments;to existing legislation and procedures on local investments;

m) To prepare the agenda for meetings of the Board and submit for its m) To prepare the agenda for meetings of the Board and submit for its consideration and approval policies and measures which are deemed consideration and approval policies and measures which are deemed necessary to carry out the provisions of the Code; necessary to carry out the provisions of the Code;

n) To submit annual reports to the Board through the Chairperson on the n) To submit annual reports to the Board through the Chairperson on the activities of the Sultan Kudarat Investment Promotion Center relative to activities of the Sultan Kudarat Investment Promotion Center relative to the implementation of this Code, within 60 days after the close of the the implementation of this Code, within 60 days after the close of the calendar year; calendar year;

o) To monitor and evaluate project implementation of registered o) To monitor and evaluate project implementation of registered enterprises under this Code for purposes of ensuring that the enterprises under this Code for purposes of ensuring that the objectives of the same are accomplished;objectives of the same are accomplished;

p) To recommend applicants for employment in the registered p) To recommend applicants for employment in the registered enterprises;enterprises;

q) To identify problems and difficulties being q) To identify problems and difficulties being encountered by investors and offer viable encountered by investors and offer viable solutions and render necessary assistance solutions and render necessary assistance to them; andto them; and

r) To perform such other functions as may be r) To perform such other functions as may be directed by the Board.directed by the Board.

SECTION 19. Visitorial Power of the Board SECTION 19. Visitorial Power of the Board or Centeror Center..

The Board, the Center, or any duly authorized member The Board, the Center, or any duly authorized member thereof, is hereby empowered and authorized to conduct thereof, is hereby empowered and authorized to conduct an ocular inspection of the premises or examination of the an ocular inspection of the premises or examination of the business activity of any enterprise, including the records business activity of any enterprise, including the records and books of any enterprise, registered or applying for and books of any enterprise, registered or applying for registration at any reasonable time of the day, during office registration at any reasonable time of the day, during office hours, for verification or ascertaining, the enterprise’s strict hours, for verification or ascertaining, the enterprise’s strict compliance with the provisions of the Code, or when the compliance with the provisions of the Code, or when the Board or Center deems it necessary in or incidental to the Board or Center deems it necessary in or incidental to the effective exercise and performance of their respective effective exercise and performance of their respective functions and powers.functions and powers.

CHAPTER VIICHAPTER VII INVESTMENT PRIORITIES PLAN INVESTMENT PRIORITIES PLAN

SECTION 20. Criteria in Determining Investment SECTION 20. Criteria in Determining Investment Priority Areas. Priority Areas. - Economic activity that shall be - Economic activity that shall be included in the Investment Priorities Plan must be included in the Investment Priorities Plan must be environmentally, socio-economically, technically environmentally, socio-economically, technically and financially sound after thorough investigation and financially sound after thorough investigation and analysis by the Board. The determination of and analysis by the Board. The determination of preferred areas of investment to be listed in the preferred areas of investment to be listed in the Investment Priorities Plan shall be based on the Investment Priorities Plan shall be based on the following:following:

a) long-run comparative advantagea) long-run comparative advantage

b) economic soundnessb) economic soundness

c) extent of contribution of the activity to a c) extent of contribution of the activity to a specific development goalspecific development goal

d) market and technical considerationsd) market and technical considerations

e) value of social objectivese) value of social objectives

f) other indicators of comparative advantage.f) other indicators of comparative advantage.

SECTION 21. Preferred Areas of SECTION 21. Preferred Areas of Investment.Investment.

- The Board shall determine the preferred areas of - The Board shall determine the preferred areas of investment taking into account those which will investment taking into account those which will economically produce goods for domestic use in economically produce goods for domestic use in substitution of goods being imported in large substitution of goods being imported in large quantities and thereby increase the value of quantities and thereby increase the value of agricultural, mining, and other products already agricultural, mining, and other products already being produced or which will make products at being produced or which will make products at cost low enough to be sold competitively in either cost low enough to be sold competitively in either domestic or export markets. Priority shall be given domestic or export markets. Priority shall be given but not limited to the following:but not limited to the following:

AGRICULTUREAGRICULTURE* Commercial agricultural or food production (corn, palay, * Commercial agricultural or food production (corn, palay,

fruits)fruits)* Coffee production* Coffee production

Agri-Business and Food ProcessingAgri-Business and Food Processing* Amakan (Palm Oil Leaf) Weaving* Amakan (Palm Oil Leaf) Weaving

* Fruit Processing (Vacuum, Dehydrated, Spray Dried)* Fruit Processing (Vacuum, Dehydrated, Spray Dried)* Canned Specialty Vegetables* Canned Specialty Vegetables* Snack Food* Snack Food* Cutflower Production* Cutflower Production

MARINE RESOURCESMARINE RESOURCES

* Pearl farming* Pearl farming

* Commercial aquaculture or harvesting of pearl * Commercial aquaculture or harvesting of pearl shell, shell fish or other reef or lagoon productsshell, shell fish or other reef or lagoon products

* Commercial fishing * Commercial fishing

* Fresh fish processing* Fresh fish processing

* Fresh fish exporting* Fresh fish exporting

* Fish bait production* Fish bait production

MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION* Food processing including freezing and drying, or drink bottling* Food processing including freezing and drying, or drink bottling* Screen printing of fabrics or other piece goods* Screen printing of fabrics or other piece goods* Garment manufacture* Garment manufacture* Making of traditional or cultural handicrafts and artifacts (including* Making of traditional or cultural handicrafts and artifacts (includingcommercial reproductions)commercial reproductions)* Recordings of cultural performances* Recordings of cultural performances• JewelleryJewellery

TOURISMTOURISM* Visitor accommodation* Visitor accommodation* Motor vehicle rentals* Motor vehicle rentals* Tourist tours or transfers* Tourist tours or transfers* Eco-tourism* Eco-tourism• • Business HotelsBusiness Hotels

• Restaurants• Restaurants• Resorts• Resorts• Parks• Parks

Light Manufacturing and AssemblyLight Manufacturing and Assembly • Garments• Garments• Footwear• Footwear• Toys• Toys• Bulky Kitchen and House Wares• Bulky Kitchen and House Wares

Property Development Property Development • Industrial Estate• Industrial Estate• Convention Center• Convention Center• Residential Area Development• Residential Area Development• Commercial/Office Building• Commercial/Office Building

Establishment of Foreign Bank BranchesEstablishment of Foreign Bank Branches

Medical, Educational, Training, and Medical, Educational, Training, and Sports FacilitiesSports Facilities

TelecommunicationsTelecommunications

Environmental Enhancement and Environmental Enhancement and Protection ProjectProtection Project

OTHER AREASOTHER AREAS** Cinema operationsCinema operations* Cultural attractions (including cultural performances)* Cultural attractions (including cultural performances)* Bakeries or pastry shops* Bakeries or pastry shops* Grocery retail outlets (including sundry stores, superettes, and* Grocery retail outlets (including sundry stores, superettes, andsupermarkets)supermarkets)* Ownership of galleries for paintings or other visual arts* Ownership of galleries for paintings or other visual arts* Motor vehicle dealers* Motor vehicle dealers* Restaurants, cafés, or other food preparation and sale operations* Restaurants, cafés, or other food preparation and sale operations* Retail of traditional or cultural handicrafts and artifacts (including commercial * Retail of traditional or cultural handicrafts and artifacts (including commercial

reproductions)reproductions)* Sale or supply of computer hardware or related services* Sale or supply of computer hardware or related services* Trucking operations* Trucking operations* Taverns or public bars* Taverns or public bars* Laundry or dry-cleaning* Laundry or dry-cleaning* Places offering Internet access (e.g. internet cafés)* Places offering Internet access (e.g. internet cafés)* Audio or video production, hire, or sale* Audio or video production, hire, or sale* Hairdressing salons, beauty parlours, or health spas* Hairdressing salons, beauty parlours, or health spas* Call centers* Call centers

SECTION 22. Non – area specific priority investment activities SECTION 22. Non – area specific priority investment activities – New – New investments in economic activities which fall under investments in economic activities which fall under Green InvestmentsGreen Investments

shall be eligible for incentives even if they are located outside the defined shall be eligible for incentives even if they are located outside the defined priority investment areas, to wit:priority investment areas, to wit:

a) Repainting of establishments;a) Repainting of establishments;

b) Regreening through tree planting;b) Regreening through tree planting;

c) Landscaping;c) Landscaping;

d) Production of organic fertilizers;d) Production of organic fertilizers;

SECTION 23. Criteria in Determining Investment Priority. SECTION 23. Criteria in Determining Investment Priority. - The Board - The Board shall take into account the following criteria in the determination of shall take into account the following criteria in the determination of

investment priority, to wit:investment priority, to wit:

(a)(a) The gaps between prospective demand and The gaps between prospective demand and existing supply for specific products, commodities existing supply for specific products, commodities and services and the additional production and services and the additional production capacities that must be induced, where such capacities that must be induced, where such exist;exist;

(b) The potential of such areas of investment for (b) The potential of such areas of investment for creating new markets , both domestic and creating new markets , both domestic and foreign, for domestic suppliers of raw foreign, for domestic suppliers of raw materials/intermediate goods, or new sources of materials/intermediate goods, or new sources of supply for domestic consumers of the products;supply for domestic consumers of the products;

(c) The potential of such areas of investment for (c) The potential of such areas of investment for creating productive employment, considering the creating productive employment, considering the necessity for the dispersal of industries in the necessity for the dispersal of industries in the countryside on a planned and balanced basis to countryside on a planned and balanced basis to the extent that is economically feasible and the extent that is economically feasible and practicable;practicable;

(d) The extent to which investment in such areas will (d) The extent to which investment in such areas will integrate existing production facilities;integrate existing production facilities;

(e) The amount of capital normally needed (e) The amount of capital normally needed thereby;thereby;

(f) The nature of risk, commercial or (f) The nature of risk, commercial or otherwise, which will be entailed;otherwise, which will be entailed;

(g) The proportion of the required capital, raw (g) The proportion of the required capital, raw materials and labor inputs of indigenous materials and labor inputs of indigenous origin;origin;

(h) The comparative advantage they enjoy or (h) The comparative advantage they enjoy or could be made to enjoy; andcould be made to enjoy; and

(i) The availability of local raw materials and (i) The availability of local raw materials and manpower skills needed for said project.manpower skills needed for said project.

The Board shall give priority to projects with the The Board shall give priority to projects with the highest rate of return favorable to the local highest rate of return favorable to the local economy. No Projects shall be included in the economy. No Projects shall be included in the investment priorities plan nor declared as investment priorities plan nor declared as preferred areas of investment, unless shown to be preferred areas of investment, unless shown to be economically, technically, financially and economically, technically, financially and ecologically sound after thorough investigation and ecologically sound after thorough investigation and analysis by the Board.analysis by the Board.

SECTION 24. Determination of SECTION 24. Determination of Additional Investment Areas.Additional Investment Areas.

(a) Additional economic activities may be (a) Additional economic activities may be included in the list of priority investment included in the list of priority investment areas upon approval by the Board and shall areas upon approval by the Board and shall then be adapted for implementation under then be adapted for implementation under the Sultan Kudarat Investment Promotions the Sultan Kudarat Investment Promotions Program. Program.

The inclusion of investment priority areas should be The inclusion of investment priority areas should be based on the following factors: based on the following factors:

(1) generation of high levels of employment, (1) generation of high levels of employment,

(2) high degree of value-added features, (2) high degree of value-added features,

(3) creation of linkages with local industries, (3) creation of linkages with local industries, and and

(4) no deleterious effect on the environment.(4) no deleterious effect on the environment.

(b) The Board, however, may remove an area or activity from (b) The Board, however, may remove an area or activity from the list, at any point, when any of the following conditions is the list, at any point, when any of the following conditions is present:present:

(1) sufficient investments in the areas or activity have been (1) sufficient investments in the areas or activity have been attained, attained,

(2) continued extension of incentives or support measures for (2) continued extension of incentives or support measures for the specific investment area is no longer to the interest of the specific investment area is no longer to the interest of Sultan Kudarat Province or may place the government and Sultan Kudarat Province or may place the government and the public in adverse position, the public in adverse position,

(3) the investment area or activity cannot attract investors (3) the investment area or activity cannot attract investors within reasonable time and cost or may result in within reasonable time and cost or may result in unfavorable business climate, and unfavorable business climate, and

(4) lack of progress in the implementation of an environmental (4) lack of progress in the implementation of an environmental management plan.management plan.

SECTION 25. Review of Investment Incentives SECTION 25. Review of Investment Incentives and Support Measures.and Support Measures.

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

CHAPTER VIIICHAPTER VIIIAVAILING ENTERPRISESAVAILING ENTERPRISES

SECTION 26. Qualifications of New SECTION 26. Qualifications of New Investors/Enterprises. Investors/Enterprises. – New investors – New investors who intend to avail of the incentives who intend to avail of the incentives provided in the Code must meet the provided in the Code must meet the following qualifications:following qualifications:

a) That the business enterprise must have a) That the business enterprise must have complied with all the requirements complied with all the requirements mandated under existing local and national mandated under existing local and national laws, rules and policies of the government;laws, rules and policies of the government;

b) That the prospective investor’s place of operation b) That the prospective investor’s place of operation or production be located within the territorial or production be located within the territorial jurisdiction of the Province of Sultan Kudarat;jurisdiction of the Province of Sultan Kudarat;

c) That the prospective investors must engage in c) That the prospective investors must engage in activities in preferred areas of investment such as activities in preferred areas of investment such as tourism, manufacturing, production, tourism, manufacturing, production, processing, transportation, energy processing, transportation, energy development, agro-industrial, agro-forestry development, agro-industrial, agro-forestry industry and agricultureindustry and agriculture;;

d) The new enterprise must have a capitalization of d) The new enterprise must have a capitalization of at least Five Million Pesos (P5,000,000.00), at least Five Million Pesos (P5,000,000.00), provided that the amount of capitalization shall be provided that the amount of capitalization shall be based on the total project cost as stated in the based on the total project cost as stated in the investor’s profile submitted to the SKIPC; investor’s profile submitted to the SKIPC;

e) That the enterprise will see to it that not less than e) That the enterprise will see to it that not less than twenty-five percent (25%) of its total work force twenty-five percent (25%) of its total work force shall be bona-fide residents of the Province of shall be bona-fide residents of the Province of Sultan Kudarat. Sultan Kudarat.

f) Foreign companies intending to apply for f) Foreign companies intending to apply for registration must comply with Foreign Investment registration must comply with Foreign Investment Act of 1991;Act of 1991;

g) The project must not be included in the negative list as g) The project must not be included in the negative list as provided for under the Foreign Investments Act (R.A. provided for under the Foreign Investments Act (R.A. 7042);7042);

h) Project must not negatively impact the environment, h) Project must not negatively impact the environment, whether in terms of pollution or resource use; andwhether in terms of pollution or resource use; and

i) Registered with Securities and Exchange Commission i) Registered with Securities and Exchange Commission (SEC) in the case of a corporation and association, (SEC) in the case of a corporation and association, Department of Trade and Industry (DTI) in the case of a Department of Trade and Industry (DTI) in the case of a single proprietorship or Cooperative Development single proprietorship or Cooperative Development Authority (CDA) in the case of a cooperative;Authority (CDA) in the case of a cooperative;

SECTION 27. Qualifications of Existing Enterprises SECTION 27. Qualifications of Existing Enterprises – An existing enterprise may avail of the incentives – An existing enterprise may avail of the incentives under this Code provided that the following qualifications are under this Code provided that the following qualifications are met, to wit:met, to wit:

a) That the business enterprise must a) That the business enterprise must have complied with all the requirements have complied with all the requirements mandated under existing local and national mandated under existing local and national laws, rules and policies of the government;laws, rules and policies of the government;

b) That the prospective investor’s place of b) That the prospective investor’s place of operation or production be located within the operation or production be located within the territorial jurisdiction of the Province of territorial jurisdiction of the Province of Sultan Kudarat;Sultan Kudarat;

c) That the prospective investors must engage in activities in c) That the prospective investors must engage in activities in preferred areas of investment such as preferred areas of investment such as tourism, tourism, manufacturing, production, processing,transportation, manufacturing, production, processing,transportation, energy development, agro-industrial, agro-forestry energy development, agro-industrial, agro-forestry industry and agricultureindustry and agriculture;;

d) That the enterprise will see to it that not less than twenty-d) That the enterprise will see to it that not less than twenty-five percent (25%) of its total work force shall be bona-fide five percent (25%) of its total work force shall be bona-fide residents of the Province of Sultan Kudarat.residents of the Province of Sultan Kudarat.

e) Registered with Securities and Exchange Commission e) Registered with Securities and Exchange Commission (SEC) in the case of a corporation and association, (SEC) in the case of a corporation and association, Department of Trade and Industry (DTI) in the case of a Department of Trade and Industry (DTI) in the case of a single proprietorship or Cooperative Development Authority single proprietorship or Cooperative Development Authority (CDA) in the case of a cooperative; (CDA) in the case of a cooperative;

f) The existing enterprise whose place of operation f) The existing enterprise whose place of operation or production is already located within the or production is already located within the territorial jurisdiction of the province, but which territorial jurisdiction of the province, but which intends to undertake any of the following activities:intends to undertake any of the following activities:

1) Relocate its principal office, but not the production 1) Relocate its principal office, but not the production site of activity, from other places of the country to site of activity, from other places of the country to Sultan Kudarat; or,Sultan Kudarat; or,

2) Expand its existing production capacity or 2) Expand its existing production capacity or construct new buildings and other civil works for construct new buildings and other civil works for the installation of new machinery and equipment the installation of new machinery and equipment or improvements thereof which will result in an or improvements thereof which will result in an increase in production capacity. increase in production capacity.

g) The expansion or diversification shall have an g) The expansion or diversification shall have an additional project cost in the scale as provided in additional project cost in the scale as provided in this Code, provided that the amount of this Code, provided that the amount of capitalization shall be based on the total additional capitalization shall be based on the total additional project cost and such expansion or diversification project cost and such expansion or diversification as stated in the investor's project study submitted as stated in the investor's project study submitted to and approved by the Board;to and approved by the Board;

h) The expansion or diversification project will h) The expansion or diversification project will provide employment to bona-fide residents of the provide employment to bona-fide residents of the province; and,province; and,

i) The expansion or diversification will include an i) The expansion or diversification will include an environmental management plan.environmental management plan.

j)j) The intended expansion or diversification of the enterprise The intended expansion or diversification of the enterprise must engage in any of the specifically identified must engage in any of the specifically identified preferred or priority investment areas as may hereafter be preferred or priority investment areas as may hereafter be declared by the Board;declared by the Board;

k) The enterprise must show proof of financial capacity and k) The enterprise must show proof of financial capacity and

capability to undertake the expansion or diversification capability to undertake the expansion or diversification project and its operation;project and its operation;

l) Relocate its principal office from other places of the l) Relocate its principal office from other places of the country to the Province of Sultan Kudarat; orcountry to the Province of Sultan Kudarat; or

m) Expand its existing production m) Expand its existing production capacity or construct new buildings and capacity or construct new buildings and other civil works for the installation of other civil works for the installation of new machinery and equipment or new machinery and equipment or improvements thereof which will result in improvements thereof which will result in an increase in production capacity; an increase in production capacity;

SECTION 28. Registration Requirements.SECTION 28. Registration Requirements.

(a) Single Proprietorship:(a) Single Proprietorship:1) Four (4) copies of completed registration forms;1) Four (4) copies of completed registration forms;2) A copy of the complete project study of the proposed 2) A copy of the complete project study of the proposed

investment/expansion showing that the project is investment/expansion showing that the project is economically, technically, financially and environmentally economically, technically, financially and environmentally feasible and viable;feasible and viable;

3) A copy of Business Name Registration; and3) A copy of Business Name Registration; and4) A copy of audited Financial Statements (if existing).4) A copy of audited Financial Statements (if existing).5) A complete copy of the Environmental Impact Study.5) A complete copy of the Environmental Impact Study.

6) A copy of the Environmental Compliance Certificate. 6) A copy of the Environmental Compliance Certificate.

(b) For Partnership/Corporation:(b) For Partnership/Corporation:

1) Four (4) copies of completed registration forms;1) Four (4) copies of completed registration forms;2) A copy of the complete project study of the proposed 2) A copy of the complete project study of the proposed

investment/expansion showing that the project is economically, investment/expansion showing that the project is economically, technically, financially and environmentally feasible and viable;technically, financially and environmentally feasible and viable;

3) A copy of the Articles of Partnership or Incorporation as approved by 3) A copy of the Articles of Partnership or Incorporation as approved by the Securities and Exchange Commission (SEC) for partnership, the Securities and Exchange Commission (SEC) for partnership, corporation, association and foundation;corporation, association and foundation;

4) A certified true copy of its Certificate of Registration by the SEC, for 4) A certified true copy of its Certificate of Registration by the SEC, for corporation, partnership, association and foundation, and its Business corporation, partnership, association and foundation, and its Business Name Registration by the Department of Trade and Industry and the Name Registration by the Department of Trade and Industry and the Mayor’s Permit;Mayor’s Permit;

5) Resolution of the applicant’s Board of Directors, in case of a 5) Resolution of the applicant’s Board of Directors, in case of a Corporation authorizing the filing of application; Corporation authorizing the filing of application;

6) A copy of audited Financial Statements (if existing);6) A copy of audited Financial Statements (if existing);7) A complete copy of the Environmental Impact Study; and7) A complete copy of the Environmental Impact Study; and

8) A copy of the Environmental Compliance Certificate. 8) A copy of the Environmental Compliance Certificate.

(c) For Cooperative:(c) For Cooperative:

1) Four (4) copies of completed registration forms;1) Four (4) copies of completed registration forms;2) A copy of the complete project study of the proposed 2) A copy of the complete project study of the proposed

investment/expansion showing that the project is economically, investment/expansion showing that the project is economically, technically, financially and environmentally feasible and viable;technically, financially and environmentally feasible and viable;

3) A copy of the Articles of Cooperation as approved by the Cooperative 3) A copy of the Articles of Cooperation as approved by the Cooperative Development Authority (CDA) for cooperatives;Development Authority (CDA) for cooperatives;

4) CDA Registration; 4) CDA Registration; 5) A copy of audited Financial Statements (if existing);5) A copy of audited Financial Statements (if existing);6) A complete copy of the Environmental Impact Study; and6) A complete copy of the Environmental Impact Study; and

7) A copy of the Environmental Compliance Certificate. 7) A copy of the Environmental Compliance Certificate.

SECTION 29. Prior Consent of SECTION 29. Prior Consent of NCIP.NCIP.

The new enterprise must secure from the The new enterprise must secure from the Regional Office of the National Commission Regional Office of the National Commission on Indigenous Peoples a Free and Prior on Indigenous Peoples a Free and Prior Informed Consent (FPIC) should the Informed Consent (FPIC) should the proposed site of investment be located proposed site of investment be located within the ancestral domain claim of the within the ancestral domain claim of the indigenous peoples.indigenous peoples.

SECTION 30. Registration SECTION 30. Registration Procedures.Procedures.

a) Venue for Filing of Applications. - All a) Venue for Filing of Applications. - All applications shall be filed with the SKIPC.applications shall be filed with the SKIPC.

b) Date of Official Acceptance. - The b) Date of Official Acceptance. - The application shall be recorded in the application shall be recorded in the Registration Book and the date appearing Registration Book and the date appearing therein and stamped on the application shall therein and stamped on the application shall be considered as the date of official be considered as the date of official acceptance. Only applications with complete acceptance. Only applications with complete requirements shall be accepted.requirements shall be accepted.

c) Filing Fee. - A non-refundable filing fee shall be c) Filing Fee. - A non-refundable filing fee shall be paid together with the required documents for paid together with the required documents for

registration.registration.

The following are the non-refundable Filing The following are the non-refundable Filing Fees to be collected:Fees to be collected:

(1) P 1,000.00 - Small-scale Enterprise(1) P 1,000.00 - Small-scale Enterprise

(2) P 2,500.00 - Medium-Scale Enterprise; (2) P 2,500.00 - Medium-Scale Enterprise; andand

(3) P 5,000.00 - Large Industries(3) P 5,000.00 - Large Industries

(d) Processing Time. - Application shall be (d) Processing Time. - Application shall be acted upon by the SKIPC within ten (10) acted upon by the SKIPC within ten (10) working days from the official acceptance working days from the official acceptance thereof and by the Chairman of the Board thereof and by the Chairman of the Board within the next 10 working days. If and when within the next 10 working days. If and when the application is not acted upon within the the application is not acted upon within the stated period of a total of twenty (20) stated period of a total of twenty (20) working days, the application is deemed working days, the application is deemed approved.approved.

(e) Certificate of Registration. - A registered (e) Certificate of Registration. - A registered enterprise under the code shall be issued a enterprise under the code shall be issued a Certificate of Registration with the signature Certificate of Registration with the signature of the Chairman of the Board and/or such of the Chairman of the Board and/or such other officer as the Board may empower and other officer as the Board may empower and designate for the purpose. It shall state designate for the purpose. It shall state among others, the following:among others, the following:

(1) Name of the Registered Enterprise;(1) Name of the Registered Enterprise;

(2) The priority investment area in which the (2) The priority investment area in which the registered enterprise will engage in; andregistered enterprise will engage in; and

(3) The other terms and conditions to be (3) The other terms and conditions to be observed by virtue of its registration.observed by virtue of its registration.

SECTION 31. Evaluation and SECTION 31. Evaluation and Approval Procedures.Approval Procedures.

a) Once an application is officially accepted, the a) Once an application is officially accepted, the project will be evaluated by the Sultan Kudarat project will be evaluated by the Sultan Kudarat Investment Promotion Center (SKIPC) which may Investment Promotion Center (SKIPC) which may conduct ocular inspection at the premises or conduct ocular inspection at the premises or examination of the business community.examination of the business community.

b) If found not qualified, SKIPC shall inform the b) If found not qualified, SKIPC shall inform the applicant in writing.applicant in writing.

c) If found qualified, the SKIPC forwards the c) If found qualified, the SKIPC forwards the application to the Board for its deliberation for the application to the Board for its deliberation for the registration of the project or enterprise or for the registration of the project or enterprise or for the grant of incentives applied for.grant of incentives applied for.

d) The Chairman of the Board shall approve the application d) The Chairman of the Board shall approve the application upon the favorable recommendation of the SKIPC.upon the favorable recommendation of the SKIPC.

e) The SKIPC shall inform the applicant in writing the decision e) The SKIPC shall inform the applicant in writing the decision of the Baord on its application.of the Baord on its application.

f) Once approved by the Chairman, the SKIPC within five (5) f) Once approved by the Chairman, the SKIPC within five (5) working days shall inform the applicant in writing and working days shall inform the applicant in writing and delivers the Certificate of Registration. The SKIPC then delivers the Certificate of Registration. The SKIPC then informs the Provincial Treasurer, the Provincial Assessor, informs the Provincial Treasurer, the Provincial Assessor, the Municipal Treasurer and the Municipal Assessor where the Municipal Treasurer and the Municipal Assessor where the business establishment is located, of such approval for the business establishment is located, of such approval for their information, guidance and appropriate action.their information, guidance and appropriate action.

SECTION 32. Evaluation Criteria. SECTION 32. Evaluation Criteria. – The following – The following criteria shall be used in the evaluation of application criteria shall be used in the evaluation of application for registration under this Code:for registration under this Code:

a) Capitalization. - The project must have a total a) Capitalization. - The project must have a total project cost of at least Five Million (P project cost of at least Five Million (P 5,000,000.00);5,000,000.00);

b) Employment. - That the project shall employ b) Employment. - That the project shall employ bona-fide residents of Sultan Kudarat Province of bona-fide residents of Sultan Kudarat Province of not less than 25% of its total work force;not less than 25% of its total work force;

c) Compliance of all registration requirements c) Compliance of all registration requirements mandated under existing local and national laws;mandated under existing local and national laws;

d) Location. - The operation of the project shall be d) Location. - The operation of the project shall be located within Sultan Kudarat Province andlocated within Sultan Kudarat Province and

SECTION 33. Certificate of SECTION 33. Certificate of Registration.Registration.

Under this Code, an enterprise is considered Under this Code, an enterprise is considered registered upon approval of its application registered upon approval of its application with the Board, and as such, legally entitles with the Board, and as such, legally entitles it to fully avail of any or all of the fiscal it to fully avail of any or all of the fiscal incentives provided in this Code. A incentives provided in this Code. A registered enterprise shall be issued a registered enterprise shall be issued a Certificate of Registration duly signed by the Certificate of Registration duly signed by the Board's chairman in such style and form as Board's chairman in such style and form as the Board may determine.the Board may determine.

SECTION 34. Rights and SECTION 34. Rights and Privileges.Privileges.

- All investors or registered enterprises are - All investors or registered enterprises are entitled to the rights and guarantees entitled to the rights and guarantees provided for by law and the Constitution and provided for by law and the Constitution and the privileges provided for by this Code. In the privileges provided for by this Code. In addition to such rights and guarantees to addition to such rights and guarantees to enhance investor’s confidence under this enhance investor’s confidence under this incentives program, the Provincial incentives program, the Provincial Government through the Sultan Kudarat Government through the Sultan Kudarat Investment Promotion Center shall:Investment Promotion Center shall:

a)a) Provide concise and comprehensive information Provide concise and comprehensive information to prospective investors regarding the economic to prospective investors regarding the economic priorities of the province, target investment priorities of the province, target investment areas, and the general conditions applicable to areas, and the general conditions applicable to incoming direct private investments;incoming direct private investments;

b)b) b) Take the fullest possible accounts of the need b) Take the fullest possible accounts of the need of the investors for stability, growth and profit in of the investors for stability, growth and profit in their operations in the formulation or modification their operations in the formulation or modification of policies and ordinances that will affect of policies and ordinances that will affect investments;investments;

c) Disseminate to investors and the general public, the investment c) Disseminate to investors and the general public, the investment evaluation criteria and registration procedures to enhance government evaluation criteria and registration procedures to enhance government transparency in the process of granting investments in the province;transparency in the process of granting investments in the province;

d) Facilitate implementation of the investment project;d) Facilitate implementation of the investment project;e) Not to interfere or modify arrangements with investors after the details e) Not to interfere or modify arrangements with investors after the details

for the implementation of an investment project has been accepted and for the implementation of an investment project has been accepted and approved, and the ownership and management structure of the approved, and the ownership and management structure of the enterprise has been established, unless the law provides otherwise;enterprise has been established, unless the law provides otherwise;

f) Avoid and/or provide undue distortion of competition between or among f) Avoid and/or provide undue distortion of competition between or among enterprises operating within the territorial jurisdiction of the province, enterprises operating within the territorial jurisdiction of the province, whether domestic or foreign, when granting any special exemptions or whether domestic or foreign, when granting any special exemptions or incentives aimed at encouraging investment in the identified target incentives aimed at encouraging investment in the identified target areas;areas;

g) All investors who shall invest under this Code are hereby g) All investors who shall invest under this Code are hereby encouraged to hire employees residing within the province encouraged to hire employees residing within the province with due consideration on the recommendations of SKIPC with due consideration on the recommendations of SKIPC or the Board; and in cases where no local personnel or or the Board; and in cases where no local personnel or worker is qualified and capable, allow the employment of worker is qualified and capable, allow the employment of qualified non-residents or foreign personnel where this is qualified non-residents or foreign personnel where this is necessary, for the efficient operation of the enterprise or for necessary, for the efficient operation of the enterprise or for technology transfer;technology transfer;

h) Resolve all doubts and/or conflicts concerning the benefits, h) Resolve all doubts and/or conflicts concerning the benefits, privileges, and incentives granted under this Code or in privileges, and incentives granted under this Code or in other local ordinances enacted for the purpose of other local ordinances enacted for the purpose of encouraging investment, in favor of the investor.encouraging investment, in favor of the investor.

SECTION 35. Duties and Responsibilities SECTION 35. Duties and Responsibilities of Registered Enterprises.of Registered Enterprises.

Every registered enterprise shall submit to the Every registered enterprise shall submit to the SKIPC the following reports and/or documents SKIPC the following reports and/or documents within the time herein prescribed:within the time herein prescribed:

(1) Amendments of Articles of Incorporation or By-(1) Amendments of Articles of Incorporation or By-laws, or Articles of Partnership, or Articles of laws, or Articles of Partnership, or Articles of Cooperation, within thirty (30) calendar days from Cooperation, within thirty (30) calendar days from the date of submission of said amendments with the date of submission of said amendments with the Securities and Exchange Committee or the Securities and Exchange Committee or Cooperative Development Authority;Cooperative Development Authority;

(2) Change of Directors within thirty (30) calendar (2) Change of Directors within thirty (30) calendar days from the change;days from the change;

(3) Report on alien officers or employees within thirty (3) Report on alien officers or employees within thirty (30) calendar days from date of registration or (30) calendar days from date of registration or from the appointment of such aliens/replacements; from the appointment of such aliens/replacements; Provided: that such alien/s are registered as such Provided: that such alien/s are registered as such with the Bureau of Immigration and Deportation with the Bureau of Immigration and Deportation (BID) and with the Department of Labor and (BID) and with the Department of Labor and Employment (DOLE);Employment (DOLE);

(4) Report on employment of bona-fide Sultan (4) Report on employment of bona-fide Sultan Kudarat residents within thirty (30) calendar Kudarat residents within thirty (30) calendar days from date of registration or from the days from date of registration or from the appointment of their replacement;appointment of their replacement;

(5) Quarterly report on the enterprise’s (5) Quarterly report on the enterprise’s business operations, including its production business operations, including its production or gross sales or receipts, within thirty (30) or gross sales or receipts, within thirty (30) calendar days from end of each quarter;calendar days from end of each quarter;

(6) Audited Financial Statements, within thirty (6) Audited Financial Statements, within thirty (30) calendar days after its submission to (30) calendar days after its submission to the Bureau of Internal Revenue (BIR); andthe Bureau of Internal Revenue (BIR); and

(7) Report on total local incentives availed of (7) Report on total local incentives availed of under this Code.under this Code.

SECTION 36. SECTION 36. Sanctions for Late submission of Sanctions for Late submission of the Preceding Reports and Documents.the Preceding Reports and Documents.

For late submission of reports and the For late submission of reports and the aforementioned documents, every registered aforementioned documents, every registered enterprise shall, for each preferred/priority area enterprise shall, for each preferred/priority area of investment, be fined in accordance with the of investment, be fined in accordance with the following:following:

1st violation – P 5.00 per day every violation;1st violation – P 5.00 per day every violation;

2nd violation – P 10.00 per day every violation;2nd violation – P 10.00 per day every violation;

3rd violation & subsequent violations – P 20.00 per 3rd violation & subsequent violations – P 20.00 per day for every violationday for every violation

CHAPTER IXCHAPTER IX FISCAL AND NON-FISCAL INCENTIVES FISCAL AND NON-FISCAL INCENTIVES

SECTION 37. Tax Incentives to Registered Enterprises.SECTION 37. Tax Incentives to Registered Enterprises. - - In addition to the incentives provided under Republic Act In addition to the incentives provided under Republic Act 7160 otherwise known as "Local Government Code of 7160 otherwise known as "Local Government Code of 1991," and Republic Act 7916 known as "The Special 1991," and Republic Act 7916 known as "The Special Economic Zone Act of 1995," Executive Order No. 226 Economic Zone Act of 1995," Executive Order No. 226 known as "Omnibus Investments Code of 1987" and other known as "Omnibus Investments Code of 1987" and other pertinent laws, a registered enterprise under this Code pertinent laws, a registered enterprise under this Code shall enjoy the following tax incentives through shall enjoy the following tax incentives through consultations with Local Government Units (LGUs) within consultations with Local Government Units (LGUs) within the territorial jurisdiction of the Province of Sultan Kudarat:the territorial jurisdiction of the Province of Sultan Kudarat:

a) Tax credit equivalent to ten percent (10%) of the a) Tax credit equivalent to ten percent (10%) of the total cost of approved infrastructure project to total cost of approved infrastructure project to be deducted from the future real property tax be deducted from the future real property tax liability of the registered enterprise within a period liability of the registered enterprise within a period of five (5) years starting from the date of the of five (5) years starting from the date of the expiration of the tax exemption of the registered expiration of the tax exemption of the registered enterprise; provided, that said infrastructure enterprise; provided, that said infrastructure project shall be open for public use;project shall be open for public use;

b) Exemption from payment of Tax on:b) Exemption from payment of Tax on:

1. Real Property Tax imposed under Resolution No. 1. Real Property Tax imposed under Resolution No. 169/Ordinance No. 05-12, otherwise known as the 169/Ordinance No. 05-12, otherwise known as the Provincial Revenue Code of Sultan Kudarat, for a Provincial Revenue Code of Sultan Kudarat, for a period of six (6) years from the date of registration period of six (6) years from the date of registration approved by the Sultan Kudarat Investment Board approved by the Sultan Kudarat Investment Board or from the date of the expiration of the registered or from the date of the expiration of the registered enterprise' tax exemption as provided under other enterprise' tax exemption as provided under other national laws, whichever is applicable; provided, national laws, whichever is applicable; provided, that the tax exemption shall pertain only to the that the tax exemption shall pertain only to the thirty-five percent (35%) share of the province.thirty-five percent (35%) share of the province.

2. Transfer of Real Property Ownership under Article 2. Transfer of Real Property Ownership under Article 224 of the IRR of Local Government Code of 224 of the IRR of Local Government Code of 1991, as adopted under Resolution No. 1991, as adopted under Resolution No. 169/Ordinance No. 05-12, otherwise known as the 169/Ordinance No. 05-12, otherwise known as the Provincial Revenue Code of Sultan Kudarat; Provincial Revenue Code of Sultan Kudarat;

3. Business of Printing and Publication under Art. 3. Business of Printing and Publication under Art. 225 of the IRR of Local Government Code of 225 of the IRR of Local Government Code of 1991, as adopted under Resolution No. 1991, as adopted under Resolution No. 169/Ordinance No. 05-12, otherwise known as the 169/Ordinance No. 05-12, otherwise known as the Provincial Revenue Code of Sultan Kudarat; Provincial Revenue Code of Sultan Kudarat;

4. Franchise Tax under Art. 226 of the IRR of Local 4. Franchise Tax under Art. 226 of the IRR of Local Government Code of 1991, as adopted under Government Code of 1991, as adopted under Resolution No. 169/Ordinance No. 05-12, Resolution No. 169/Ordinance No. 05-12, otherwise known as the Provincial Revenue Code otherwise known as the Provincial Revenue Code of Sultan Kudarat; of Sultan Kudarat;

5. Amusement Tax under Art. 229 of the IRR of 5. Amusement Tax under Art. 229 of the IRR of Local Government Code of 1991, as adopted Local Government Code of 1991, as adopted under Resolution No. 169/Ordinance No. 05-12, under Resolution No. 169/Ordinance No. 05-12, otherwise known as the Provincial Revenue Code otherwise known as the Provincial Revenue Code of Sultan Kudarat; of Sultan Kudarat;

SECTION 38. Non-Fiscal Incentives.SECTION 38. Non-Fiscal Incentives. - Registered - Registered enterprises and investors shall be granted the enterprises and investors shall be granted the

following non-fiscal incentives:following non-fiscal incentives:

a) Provision of a one-stop documentation center for simplified a) Provision of a one-stop documentation center for simplified documentation/registration procedures which shall be documentation/registration procedures which shall be facilitated with the assistance from Sultan Kudarat facilitated with the assistance from Sultan Kudarat Investment Promotion Center;Investment Promotion Center;

b) Consistent support for industrial peace through SKIPC;b) Consistent support for industrial peace through SKIPC;c) Assistance in securing direct source of electric power and c) Assistance in securing direct source of electric power and

water supply connection;water supply connection;d) Assistance in the negotiation of special rates for industries d) Assistance in the negotiation of special rates for industries

with a minimum load of at least 1000 kilowatts;with a minimum load of at least 1000 kilowatts;e) Assistance in site selection and negotiation for right of way;e) Assistance in site selection and negotiation for right of way;f) Assistance in labor recruitment and arbitration;f) Assistance in labor recruitment and arbitration;

g) Technical trainings support by the Provincial g) Technical trainings support by the Provincial Government of Sultan Kudarat in coordination with Government of Sultan Kudarat in coordination with the national agencies such as Technical Education the national agencies such as Technical Education Skills and Development Authority (TESDA) and Skills and Development Authority (TESDA) and other similar institutions to answer the skills other similar institutions to answer the skills requirement of industries located in the Province requirement of industries located in the Province of Sultan Kudarat; andof Sultan Kudarat; and

h) Other non-fiscal incentives as may be determined h) Other non-fiscal incentives as may be determined by the Sangguniang Panlalawigan through the by the Sangguniang Panlalawigan through the enactment of Resolutions/Ordinances, as the case enactment of Resolutions/Ordinances, as the case maybe.maybe.

SECTION 39. Availment of Tax SECTION 39. Availment of Tax Incentives.Incentives.

- - A registered enterprise qualified under this A registered enterprise qualified under this Code shall within six (6) years from the start Code shall within six (6) years from the start of its commercial operation be exempted of its commercial operation be exempted from the aforesaid provincial imposition in from the aforesaid provincial imposition in the manner and conditions hereunder the manner and conditions hereunder prescribed:prescribed:

(a) For those employing fifty percent to sixty nine percent (a) For those employing fifty percent to sixty nine percent (50% - 69%) of their labor from qualified residents of the (50% - 69%) of their labor from qualified residents of the province with due regard on the recommendations of the province with due regard on the recommendations of the

Board or Center:Board or Center:

(1) 100% - 1st and 2nd year(1) 100% - 1st and 2nd year

(2) 80% - 3rd year(2) 80% - 3rd year

(3) 60% - 4th year(3) 60% - 4th year

(4) 20% - 5th year(4) 20% - 5th year

(5) 10% - 6th year(5) 10% - 6th year

(6) 0% - 7th year(6) 0% - 7th year

(b) For those employing seventy percent (70%) or more of (b) For those employing seventy percent (70%) or more of their labor from qualified residents of the province with due their labor from qualified residents of the province with due

regard on the recommendations of the Board or Center:regard on the recommendations of the Board or Center:

(1) 100% - 1st and 3rd year(1) 100% - 1st and 3rd year

(2) 40% - 4th year(2) 40% - 4th year

(3) 20% - 5th year(3) 20% - 5th year

(4) 10% - 6th year(4) 10% - 6th year

(5) 0% - 7th year(5) 0% - 7th year

SECTION 40. Exclusion.SECTION 40. Exclusion.

- This grant shall not apply to regulatory fees which are levied under the - This grant shall not apply to regulatory fees which are levied under the police power of the Provincial Government.police power of the Provincial Government.

SECTION 41. Factors Governing Exemptions and SECTION 41. Factors Governing Exemptions and IncentivesIncentives. .

The grant of these exemptions and incentives shall be The grant of these exemptions and incentives shall be governed further by the following factors:governed further by the following factors:

(a) Tax exemptions:(a) Tax exemptions:(1) The grant to a type or kind of business shall apply to all (1) The grant to a type or kind of business shall apply to all

businesses similarly situated subject to the pertinent businesses similarly situated subject to the pertinent provisions of this Code.provisions of this Code.

(2) The exemption granted shall take effect only during the (2) The exemption granted shall take effect only during the next calendar year to a period not exceeding six (6) years next calendar year to a period not exceeding six (6) years thereafter.thereafter.

(3) On shared revenues, the exemption shall extend only to (3) On shared revenues, the exemption shall extend only to the local government unit granting such exemptions or the local government unit granting such exemptions or relief unless the LGU concerned shall extend the same relief unless the LGU concerned shall extend the same privilege to such enterprise qualified under this Code.privilege to such enterprise qualified under this Code.

(b) Tax incentives:(b) Tax incentives:

(1) Tax incentives shall be granted only to new (1) Tax incentives shall be granted only to new investment in the locality as well as existing investment in the locality as well as existing enterprises qualified under this Code.enterprises qualified under this Code.

(2) The grant shall be based on the capitalization of (2) The grant shall be based on the capitalization of the enterprise registered under this Code, and in the enterprise registered under this Code, and in no case shall exceed six (6) fiscal years.no case shall exceed six (6) fiscal years.

(3) Such grant to a type or kind of business shall (3) Such grant to a type or kind of business shall apply to all similar businesses qualified under this apply to all similar businesses qualified under this Code.Code.

CHAPTER X CHAPTER X GREEN INVESTMENT’S INCENTIVES GREEN INVESTMENT’S INCENTIVES

SECTION 42. CoverageSECTION 42. Coverage – Green Investment – Green Investment Enterprises availing of incentives need not Enterprises availing of incentives need not fall under any of the categories set forth in fall under any of the categories set forth in Section 21 of this Code.Section 21 of this Code.

SECTION 43. RepaintingSECTION 43. Repainting

– – An existing enterprise which paint all portions of its An existing enterprise which paint all portions of its buildings or other structure which are visible , or buildings or other structure which are visible , or will be visible , to the public and its clientele in the will be visible , to the public and its clientele in the course of the conduct of its normal business course of the conduct of its normal business operations shall be eligible to deduct from gross operations shall be eligible to deduct from gross receipts its direct painting cost but not to exceed receipts its direct painting cost but not to exceed thirty percent of the gross receipts for the year thirty percent of the gross receipts for the year subject to the following conditions:subject to the following conditions:

(a) The building, or buildings, are located (a) The building, or buildings, are located within any of the province’s within any of the province’s municipalities/city or barangays;municipalities/city or barangays;

(b) Any excess may be charged against (b) Any excess may be charged against succeeding tax years for a maximum period succeeding tax years for a maximum period of three years subjects to the same ceiling of three years subjects to the same ceiling of thirty percent of gross receipts;of thirty percent of gross receipts;

(c) This incentives may be availed of only (c) This incentives may be availed of only once every three years. once every three years.

SECTION 44. RegreeningSECTION 44. Regreening

– – An enterprise which plants trees at specified An enterprise which plants trees at specified locations shall be entitled to deduct P locations shall be entitled to deduct P 10,000 from its gross receipts for each 10,000 from its gross receipts for each growing trees but not to exceed thirty growing trees but not to exceed thirty percent of its gross receipts for the year percent of its gross receipts for the year subject to the following conditions.subject to the following conditions.

(a) To be qualified for incentive, a tree must have been growing for at (a) To be qualified for incentive, a tree must have been growing for at least one year and must be at least 4 feet in height at the time it is least one year and must be at least 4 feet in height at the time it is applied for incentive.applied for incentive.

(b) Any excess may be charge against succeeding tax years for a (b) Any excess may be charge against succeeding tax years for a maximum period of three years subject to the same ceiling of thirty maximum period of three years subject to the same ceiling of thirty percent of gross receipts;percent of gross receipts;

(c) This incentives may be availed of only once every three years;(c) This incentives may be availed of only once every three years;(d) Tree(s) which are destroyed or otherwise die due to negligence by the (d) Tree(s) which are destroyed or otherwise die due to negligence by the

enterprise within the period of availment shall result in the addition of P enterprise within the period of availment shall result in the addition of P 10,000 to the current tax base for each tree lost.10,000 to the current tax base for each tree lost.

(e) This incentive is non- transferable. In case of a change of ownership of (e) This incentive is non- transferable. In case of a change of ownership of the enterprise, the incentives shall not be transferred to the new owner, the enterprise, the incentives shall not be transferred to the new owner, but shall continue to be enjoyed by the original owner and applied to but shall continue to be enjoyed by the original owner and applied to his new business enterprise, if any, provided the period of his new business enterprise, if any, provided the period of incentive shall incentive shall

(e) This incentive is non- transferable. In case of a change of (e) This incentive is non- transferable. In case of a change of ownership of the enterprise, the incentives shall not be ownership of the enterprise, the incentives shall not be transferred to the new owner, but shall continue to be transferred to the new owner, but shall continue to be enjoyed by the original owner and applied to his new enjoyed by the original owner and applied to his new business enterprise, if any, provided the period of business enterprise, if any, provided the period of incentive shall expire within two years from the date of incentive shall expire within two years from the date of application regardless of whether the owner availed of it or application regardless of whether the owner availed of it or not.not.

(f) An enterprise availing of this incentive shall file an (f) An enterprise availing of this incentive shall file an application with the SKIPC regarding its intent to plant, the application with the SKIPC regarding its intent to plant, the kind of trees to be planted , location and the date of kind of trees to be planted , location and the date of planting. Planting shall be completed within one month planting. Planting shall be completed within one month from approval of said application.from approval of said application.

(g) The trees must be planted within , or at the frontage of the enterprise‘s (g) The trees must be planted within , or at the frontage of the enterprise‘s place of business , or along the street fronting such place of business or place of business , or along the street fronting such place of business or in the absence of space at the enterprise’s place of business, in any of in the absence of space at the enterprise’s place of business, in any of the following priority areas;the following priority areas;

(i) Within 20 meters of either side of the provincial (i) Within 20 meters of either side of the provincial road or municipal road ;road or municipal road ;

(ii) Residual forest areas;(ii) Residual forest areas;(iii) Areas identified with historical values;(iii) Areas identified with historical values;(iv) Areas of high biodiversity;(iv) Areas of high biodiversity;(v) Eroded slopes;(v) Eroded slopes;(vi) Public open spaces especially in residential and (vi) Public open spaces especially in residential and

commercial areas including street islands, parks, commercial areas including street islands, parks, promenades, parking area peripheries and in wide promenades, parking area peripheries and in wide sidewalks as may be suitable;sidewalks as may be suitable;

Provided that proper coordination is made Provided that proper coordination is made with the city, municipal or provincial with the city, municipal or provincial government, as the case may be, whenever government, as the case may be, whenever the enterprise decides to plant trees in a the enterprise decides to plant trees in a public property and provision is made by the public property and provision is made by the enterprise to ensure the care and survival of enterprise to ensure the care and survival of the planted trees. the planted trees.

SECTION 45. LandscapingSECTION 45. Landscaping

– – An existing enterprise which landscapes its An existing enterprise which landscapes its premises shall be entitled to deduct from its premises shall be entitled to deduct from its gross receipts its direct landscaping cost but gross receipts its direct landscaping cost but not to exceed thirty percent of its gross not to exceed thirty percent of its gross receipts for the tax year subject to the receipts for the tax year subject to the following conditions:following conditions:

(a) Any excess may be charged against succeeding tax years for a maximum period (a) Any excess may be charged against succeeding tax years for a maximum period of three years subject to the same ceiling of thirty percent of gross receipts;of three years subject to the same ceiling of thirty percent of gross receipts;

(b) This incentive may be availed of only once every three years;(b) This incentive may be availed of only once every three years;(c) The landscaping shall not be less than 10 sq.m. of contiguous or adjacent areas (c) The landscaping shall not be less than 10 sq.m. of contiguous or adjacent areas

which shall include the enterprise’s entire frontage area.which shall include the enterprise’s entire frontage area.(d) In the absence of sufficient space at the enterprise’s place of business , the (d) In the absence of sufficient space at the enterprise’s place of business , the

required area may be complied with by landscaping any of the following priority required area may be complied with by landscaping any of the following priority areas.areas.

(i) Areas identified with historical values;(i) Areas identified with historical values;(ii) Public open spaces especially in commercial areas including street islands, (ii) Public open spaces especially in commercial areas including street islands,

parks, promenades, parking area peripheries and in wide sidewalks as may be parks, promenades, parking area peripheries and in wide sidewalks as may be suitable; Provided landscaping undertaken in any of these public areas shall not suitable; Provided landscaping undertaken in any of these public areas shall not be less than 10 sq.m. regardless of the total area landscaped within the premises be less than 10 sq.m. regardless of the total area landscaped within the premises of the enterprise.of the enterprise.

(e) The province reserves the right to reappraise the cost of the landscaping in case (e) The province reserves the right to reappraise the cost of the landscaping in case it finds the reported cost excessive.it finds the reported cost excessive.

(f) The landscape shall have been properly maintained.(f) The landscape shall have been properly maintained.(g) This incentive may be availed of only once every three years.(g) This incentive may be availed of only once every three years.

SECTION 46. SignboardsSECTION 46. Signboards

– – An enterprise utilizing public property to avail of the An enterprise utilizing public property to avail of the incentives provided in the preceding two sections incentives provided in the preceding two sections shall be allowed to place a signboard, free of any shall be allowed to place a signboard, free of any fees, tax or charges, promoting environmental fees, tax or charges, promoting environmental consciousness, or other slogans or caricature consciousness, or other slogans or caricature supportive of growth and development, with the supportive of growth and development, with the enterprise name and logo which should be of a enterprise name and logo which should be of a size and dimension such that it will not over size and dimension such that it will not over shadow the aesthetic beauty of the project norshadow the aesthetic beauty of the project nor

the message of the signboard.the message of the signboard.

SECTION 47. RegulationSECTION 47. Regulation

– – The Board shall ensure that the regreening The Board shall ensure that the regreening and landscaping projects undertaken by and landscaping projects undertaken by enterprises on public property shall be in enterprises on public property shall be in harmony with the overall regreening and harmony with the overall regreening and beautification program of the provincial beautification program of the provincial government and/or local government government and/or local government concerned.concerned.

SECTION 48. Production of SECTION 48. Production of Organic Fertilizers.Organic Fertilizers.

– – New enterprises engaged in the production of New enterprises engaged in the production of organic fertilizers of plant and animal origin organic fertilizers of plant and animal origin including the production of microbial fertilizer with including the production of microbial fertilizer with nitrogen fixing organism shall be entitled to the nitrogen fixing organism shall be entitled to the incentives provided for under Chapter IX provided incentives provided for under Chapter IX provided the enterprise maintains a price differential vis –a- the enterprise maintains a price differential vis –a- vis synthetic fertilizers as may be fixed by the vis synthetic fertilizers as may be fixed by the Board. Mere mixing and compounding of organic Board. Mere mixing and compounding of organic fertilizers are not covered.fertilizers are not covered.

CHAPTER XI CHAPTER XI PROTECTION OF THE ENVIRONMENT PROTECTION OF THE ENVIRONMENT

SECTION 49. Environmental Impact Assessment.SECTION 49. Environmental Impact Assessment. – Environmentally critical projects or enterprises – Environmentally critical projects or enterprises locating their activities or expansion projects in locating their activities or expansion projects in environmentally critical areas shall comply with the environmentally critical areas shall comply with the requirements of Presidential Decree No. 1586 requirements of Presidential Decree No. 1586 (Philippine Environmental Impact Statement (Philippine Environmental Impact Statement System) and related issuances of the Department System) and related issuances of the Department of Environment and Natural Resources.of Environment and Natural Resources.

SECTION 50. Hazardous SECTION 50. Hazardous SubstancesSubstances..

– – Projects involving the handling, transport, Projects involving the handling, transport, processing and storage of toxic, hazardous processing and storage of toxic, hazardous substances and/or nuclear waste shall not substances and/or nuclear waste shall not be entitled to any incentives under this be entitled to any incentives under this Code.Code.

Specific prohibitions.Specific prohibitions.

(a) No industrial or manufacturing facility shall be operated without proper (a) No industrial or manufacturing facility shall be operated without proper solid and wastewater disposal facilities; solid and wastewater disposal facilities;

(b) No industrial or manufacturing plant shall be operated at levels beyond (b) No industrial or manufacturing plant shall be operated at levels beyond the operating capacity of their respective waste treatment facilities in the operating capacity of their respective waste treatment facilities in order to maintain the effluent quality within the standards required by order to maintain the effluent quality within the standards required by law;law;

(c) All Industrial and manufacturing establishment shall subject their (c) All Industrial and manufacturing establishment shall subject their operations and premises, facilities and systems to periodic operations and premises, facilities and systems to periodic environmental assessments which shall be conducted by the provincial environmental assessments which shall be conducted by the provincial government in coordination with the Department of Environment and government in coordination with the Department of Environment and Natural Resources. Refusal to be subject to such inspection shall be Natural Resources. Refusal to be subject to such inspection shall be sufficient ground for the forfeiture of any incentive and the revocation sufficient ground for the forfeiture of any incentive and the revocation of its Certificate of Registration and/or Business Permit by the of its Certificate of Registration and/or Business Permit by the concerned local government units.concerned local government units.

CHAPTER XIICHAPTER XII FINAL PROVISIONS FINAL PROVISIONS

SECTION 51. Penal Clause. SECTION 51. Penal Clause. Any violation of the provision of Any violation of the provision of

this Code shall be ground for cancellation or revocation of this Code shall be ground for cancellation or revocation of the registration of the business and the withdrawal of the registration of the business and the withdrawal of incentives granted under this Code. The Certificate of incentives granted under this Code. The Certificate of Registration of a Business Enterprise, as provided in this Registration of a Business Enterprise, as provided in this Code, may be cancelled or revoked due to the following:Code, may be cancelled or revoked due to the following:

(1) Violation of the provisions of this Code;(1) Violation of the provisions of this Code;(2) Failure to commence actual project development within (2) Failure to commence actual project development within

one (1) year from approval or registration. one (1) year from approval or registration. (3) Violation of environmental laws particularly those relating (3) Violation of environmental laws particularly those relating

to ecological conditions.to ecological conditions.  

Cancellation or revocation of the certificate of Cancellation or revocation of the certificate of registration shall mean the withdrawal of all the registration shall mean the withdrawal of all the incentives granted under the Code; and all fees incentives granted under the Code; and all fees and charges previously exempted shall become and charges previously exempted shall become due and demandable.due and demandable.

Upon the recommendation of the Center, the Upon the recommendation of the Center, the Chairman of the Board may cancel or revoke the Chairman of the Board may cancel or revoke the Certificate of Registration of the concerned Certificate of Registration of the concerned business enterprise through a formal written notice business enterprise through a formal written notice to that effect, and shall become effective on the to that effect, and shall become effective on the 16th day from the receipt thereof.16th day from the receipt thereof.

SECTION 52. Appeal from the Decision of SECTION 52. Appeal from the Decision of the Board.the Board.

The applicant or business enterprise The applicant or business enterprise adversely affected by any decision of the adversely affected by any decision of the Board relative to its cancellation/revocation Board relative to its cancellation/revocation of registration or the impositions of of registration or the impositions of fines/penalties in accordance with this Code fines/penalties in accordance with this Code may, within fifteen (15) days upon receipt of may, within fifteen (15) days upon receipt of such decision, appeal the same to the such decision, appeal the same to the Sangguniang Panlalawigan, whose decision Sangguniang Panlalawigan, whose decision shall be final and executory.shall be final and executory.

SECTION 53.SECTION 53. Refund and PenaltiesRefund and Penalties

– – In case of cancellation of the Registration In case of cancellation of the Registration Certificate, the Board shall require the Certificate, the Board shall require the refund of incentives availed of and impose refund of incentives availed of and impose corresponding fines and penalties.corresponding fines and penalties.

SECTION 54. Appropriations.SECTION 54. Appropriations.

- Appropriation covering the current operating - Appropriation covering the current operating expenditures and capital outlays for the Board and expenditures and capital outlays for the Board and the Sultan Kudarat Investment Promotion Center the Sultan Kudarat Investment Promotion Center (SKIPC) shall be sourced thru a Supplemental (SKIPC) shall be sourced thru a Supplemental Budget from the General Fund (for its starting Budget from the General Fund (for its starting operation in FY 2007) and from the 20% Annual operation in FY 2007) and from the 20% Annual Development Fund and/or regular Annual Budget Development Fund and/or regular Annual Budget (for its succeeding operation for FY 2008 onward).(for its succeeding operation for FY 2008 onward).

SECTION 55. Revenues From The SECTION 55. Revenues From The Operation Of The Code.Operation Of The Code.

Income derived from the operation of this Code shall Income derived from the operation of this Code shall go to the provincial coffers captioned go to the provincial coffers captioned “Investment Promotion Fund”“Investment Promotion Fund”.. Said fund shall Said fund shall be used solely for the operation of the Sultan be used solely for the operation of the Sultan Kudarat Provincial Investment Code and for Kudarat Provincial Investment Code and for capital outlays and maintenance and other capital outlays and maintenance and other operating expenses of the Sultan Kudarat operating expenses of the Sultan Kudarat Investment Board (SKIB) and Sultan Kudarat Investment Board (SKIB) and Sultan Kudarat Investment Promotion Center (SKIPC).Investment Promotion Center (SKIPC).

SECTION 56. Immediate Release SECTION 56. Immediate Release of Fund.of Fund.

For the purpose of expediting the operations For the purpose of expediting the operations of the Board and of the Center, its allocation of the Board and of the Center, its allocation from from Investment Promotion FundInvestment Promotion Fund shall be shall be immediately released.immediately released.

SECTION 57.SECTION 57. Modification in the Systems and Modification in the Systems and Procedures in the Offices of Local Government Units Procedures in the Offices of Local Government Units

Within Sultan Kudarat Province.Within Sultan Kudarat Province.

– – Local government units within the territorial Local government units within the territorial jurisdiction of the Province of Sultan Kudarat jurisdiction of the Province of Sultan Kudarat involved at any stage of the application for and involved at any stage of the application for and availment of incentives shall henceforth modify availment of incentives shall henceforth modify their systems and procedures in the issuance of their systems and procedures in the issuance of applicable permits and license so as to be applicable permits and license so as to be consistent with the provisions of this Code. These consistent with the provisions of this Code. These offices shall further coordinate with the SKIPC for offices shall further coordinate with the SKIPC for the purpose of setting up a one-stop processing the purpose of setting up a one-stop processing center to expedite the processing of all center to expedite the processing of all applications.applications.

SECTION 58SECTION 58. . Separability Clause.Separability Clause.

– – If, for any reason, any portion or provision, If, for any reason, any portion or provision, section or part of this Code is declared not section or part of this Code is declared not valid by a Court of competent jurisdiction or valid by a Court of competent jurisdiction or suspended or revoked by the Sangguniang suspended or revoked by the Sangguniang Panlalawigan, such judgment shall not affect Panlalawigan, such judgment shall not affect or impair the remaining portions, provisions, or impair the remaining portions, provisions, sections, or parts thereof which shall remain sections, or parts thereof which shall remain or continue to be in full force and effect.or continue to be in full force and effect.

SECTION 59. Repealing Clause.SECTION 59. Repealing Clause.

All ordinances, rules and regulations, or part All ordinances, rules and regulations, or part thereof, in conflict with, or inconsistent with thereof, in conflict with, or inconsistent with any provisions of this Code, are hereby any provisions of this Code, are hereby repealed, amended or modified accordingly.repealed, amended or modified accordingly.

SECTION 60. Effectivity.SECTION 60. Effectivity.

This ordinance shall take effect immediately This ordinance shall take effect immediately upon its approval. upon its approval.