Republic of the Philippines

Province of Bukidnon
CITY OF MALAYBALAY
* * *
Office of the !n""uni!n" P!nlun"sod
#$C#RPT FROM T%# MI&'T# OF T%# ()T% R#*'LAR #IO& FOR CY +,,- OF
T%# FO'RT% A&**'&IA&* PA&L'&*O. OF T%# CITY OF MALAYBALAY/
B'0I.&O&/ %#L. AT T%# P #IO& %ALL O& &O1#MB#R 2/ +,,-
PR##&T3 %on4 Cit5 Councilor 1ictor P4 Alde"uer
%on4 Cit5 Councilor M!nuel L4 .inl!5!n
%on4 Cit5 Councilor Melchor P4 M!r!6!r!/ Te6por!r5 Pre7
sidin" Officer
%on4 Cit5 Councilor A6!do C4 #str!d!
%on4 Cit5 Councilor Auror! F4 .eticio
%on4 Cit5 Councilor Cl!rit! C4 C!rb!8!l
%on4 Cit5 Councilor *lorio .4 !8ul"!
%on4 Cit5 Councilor &iko P4Alde"uer

AB#&T 3 %on4 Cit5 1ice M!5or I"n!cio 94 :ubiri ;Offici!l Business<
%on4 Cit5 Councilor Bob Roberto T4 C!s!nov! ;Offici!l Business<
%on4 Cit5 Councilor Conr!do M4 B!rroso ;Offici!l Business<
%on4 Cit5 Councilor =!i6e P4 *ellor/ =r4 ;Offici!l Business<
%on4 Cit5 Councilor Fern!ndo O4 Melende>
7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7
ORDINANCE NO. 638
eries of +,,-
ponsored b53 %on4 1ictor P4 Alde"uer
AN ORDINANCE APPROVING AND ENACTING THE MALAYBALAY CITY INVESTMENT
CODE
Be it ord!ined b5 the !n""uni!n" P!nlun"sod of the Cit5 of
M!l!5b!l!5/ Bukidnon/ in session !sse6bled/ th!t3
CHAPTER I. TITLE AND DECLARATION OF POLICY
Section 1 Tit!e ? This ordin!nce sh!ll be kno@n !nd cited !s the
M!l!5b!l!5 Cit5 Invest6ent Code of +,,-4
Section " Sco#e 7 The incentives "r!nted under this Code sh!ll be
in !ddition to !n5 incentive "r!nted b5 the n!tion!l
"overn6ent to ! re"istered enterprise4
Section 3 O$%ecti&e' ? This Code h!s the follo@in" ob8ectives3
A4 =ob *ener!tion
+4 .evelop "lob!ll5 co6petitive 6!ll Mediu6 !nd L!r"e
#nterprises
(4 Invest6ent *ener!tion
Section ( Dec!)*)tion o+ Po!ic, ? To f!st tr!ck the develop6ent of
M!l!5b!l!5 Cit5 in !ccord!nce @ith the countr5Bs
develop6ent thrust/ it is hereb5 decl!red to be the
polic5 of M!l!5b!l!5 Cit5 to encour!"e forei"n !nd loc!l
invest6ents in ne@ / eCp!nsion or diversific!tion
pro8ects @hich !re environ6ent!ll5 sust!in!ble !nd
pro6otes eDuit!ble "ro@th4 These pro8ects sh!ll utili>e


7 + 7
subst!nti!l !6ount of r!@ 6!teri!ls !nd n!tur!l resources
of the cit5/ provide e6plo56ent opportunities !nd r!ise
the st!nd!rd of livin" of the people of M!l!5b!l!5 Cit5
to@!rds !n eDuit!ble distribution of @e!lth4
CHAPTER II - DEFINITION OF TERMS
Section . Bo)*/ ? h!ll 6e!n the M!l!5b!l!5 Cit5 Invest6ent
Pro6otion Bo!rd cre!ted under this Code4
Section 6 Co0#*e1en'i&e L)n/ 2'e P!)n 3CL2P4 ? h!ll 6e!n ! A,
5e!r pl!n considerin" the soci!l/ econo6ic/
infr!structure/ loc!l !d6inistr!tion !nd environ6ent
th!t @ill "uide the 6!8or develop6ent of the cit54
Section 5 E6i'tin7 Ente*#*i'e' ? h!ll 6e!n !ll businesses @hose
princip!l !ctivities !nd f!cilities !re @ithin the
territori!l 8urisdiction of the cit5 !nd h!ve eCisted
prior to the en!ct6ent of this Code4
Section 8 E6#)n/in7 Ente*#*i'e ? h!ll include 6oderni>!tion !nd
reh!bilit!tion !nd sh!ll 6e!n incre!se of !t le!st +EF
of eCistin" volu6e or v!lue of production or up"r!din"
the Du!lit5 of the re"istered product utili>!tion of
inefficient or idle eDuip6ent4 It sh!ll !lso include
inst!ll!tion of !ddition!l f!cilities !ndGor eDuip6ent
th!t @ill result in the incre!se of production c!p!cit5
or the diversific!tion of products/ @hich c!n be 6!de
b5 l!bor7intensive or v!lue7eCtensive enterprise4
Moderni>!tion to be eli"ible for re"istr!tion/ should 6eet !ll
the follo@in" conditions3
A4 The ph!sesGst!"es of production sou"ht to be 6oderni>ed
6ust be identifiedH
+4 It 6ust not result in the l!57off of @orkersH
(4 It 6ust result in !n5 of the follo@in"3
(4A ubst!nti!l reduction of production costH
(4+ i"nific!nt incre!se in productive efficienc5H
(4( 'p"r!din" of product Du!lit5H
(42 0eepin" !bre!st @ith the st!te of the !rt in the
production of the enterprises princip!l product line4
Section 8 L)n/ B)n9in7 ? h!ll 6e!n the settlin" of !t le!st (,
hect!res of conti"uous l!nd for co66erci!l !nd
industri!l use in ! p!rticul!r b!r!n"!5 in the Cit5 of
M!l!5b!l!54
Section 1: M)!),$)!), Cit, Re7i'te*e/ B;'ine'' Ente*#*i'e 3MCRBE4 ?
h!ll 6e!n ! re"istered enterprise @hich is either !
sole proprietorship/ p!rtnership/ cooper!tive/
corpor!tion or other entit5 incorpor!ted !nd G or
or"!ni>ed !nd eCistin" under the Philippine L!@s/ !nd
re"istered @ith the Bo!rd in !ccord!nce @ith the
provision of this CodeH provided/ ho@ever th!t the ter6
IM!l!5b!l!5 Cit5 Re"istered Business #nterprise Ish!ll
not include co66erci!l b!nks/ s!vin"s/ 6ort"!"e b!nks/
rur!l b!nks/ s!vin"s !nd lo!ns !ssoci!tions/ buildin"


7 ( 7
!nd lo!n !ssoci!tion/ develop6ent b!nks/ trust
co6p!nies/ invest6ent b!nks/ fin!nce co6p!nies/ brokers
!nd de!lers in securities/ consu6er cooper!tives !nd
credit unions/ !nd other business or"!ni>!tions @hose
princip!l purpose or princip!l source of inco6e is to
receive deposits/ lend or borro@ 6one5/ bu5 !nd sell or
other@ise de!l/ tr!de or invest in co66on or preferred
stocks/ debentures/ bond or other 6!rket!ble
instru6ents "ener!ll5 reco"ni>ed !s securities or
disch!r"e other si6il!r inter6edi!r5/ trust or
fiduci!r5 functions4
Section 11 Ne7)ti&e Li't ? h!ll 6e!n the list of invest6ent !nd
business !ctivities th!t @ill h!ve ne"!tive effect on
the he!lth !nd environ6ent !nd b!sed on the current
CL'P !nd :onin" Ordin!nce of the cit5 th!t 6!5 pose !
thre!t to the securit5 of the cit5 such !s stipul!ted
in Ch!pter I1 ec4 +( !nd sh!ll be revie@ed b5 the
Bo!rd !nnu!ll5 or @herever dee6ed necess!r54
Section 1" Ne< Ente*#*i'e ? Refers to ! ne@ enterprise @hich f!lls
@ithin the preferred invest6ent priorit5 !re!s !s
defined b5 the Bo!rd/ of @hich the pl!ce of oper!tion
or production is @ithin the territori!l 8urisdiction of
the Cit54
Section 13 Pionee* Ente*#*i'e ? h!ll 6e!n ! re"istered enterprise3
A< #n"!"ed in the 6!nuf!cture/ processin" or production/ !nd
6erel5 in the !sse6ble or p!ck!"in" of "oods/ products/
co66odities or r!@ 6!teri!ls th!t h!ve not been or !re not
bein" produced in the Philippines on ! co66erci!l sc!le orH
+< 9hich uses ! desi"n/ for6ul!/ sche6e/ 6ethod/ process/ or
s5ste6 or production or tr!nsfor6!tion of !n5 ele6ent/
subst!nce/ or r!@ 6!teri!ls into !nother r!@ 6!teri!ls or
finished "oods @hich is ne@H
(< #n"!"ed in the pursuit of !"ricultur!l/ forestr5/ !ndGor
services includin" the industri!l !spect of food processin"
@henever !ppropri!te/ pre7deter6ined b5 the Bo!rd/ in
consult!tion @ith the !ppropri!te dep!rt6ent/ to be fe!sible
!nd hi"hl5 essenti!l to the !tt!in6ent of the n!tion!l
"o!l in rel!tion to ! decl!red specific n!tion!l food !nd
!"ricultur!l pro"r!6 for self7sufficienc5 !nd other soci!l
benefits of the pro8ect orH
2< 9hich produces non7convention!l fuels or 6!nuf!cturers/
eDuip6ent @hich utili>ed non7convention!l sources of ener"5
or uses or converts to co!l or other non7convention!l fuels
or sources of ener"5 in its production/ 6!nuf!cturin" or
processin" oper!tionsH provided/ th!t involves subst!nti!l
use !nd processin" of do6estic r!@ 6!teri!ls/ @henever
!v!il!bleH t!kin" into !ccount the risks !nd 6!"nitude of
invest6entH provided further/ th!t the fore"oin" definitions
sh!ll not in !n5@!5 li6it the benefits !nd incentives
"r!nted to less7developed !re! enterprises4
Section 1( Non=Pionee* Ente*#*i'e ? h!ll include !ll re"istered
producer enterprises other th!n pioneer enterprises4
7 2 7
Section 1. P1i!i##ine N)tion)! 7 h!ll 6e!n ! citi>en of the
Philippines or ! do6estic p!rtnership or !ssoci!tion
@holl57o@ned b5 citi>ens of the PhilippinesH or !
corpor!tion or"!ni>ed under the l!@s of the
Philippines of @hich !t le!st J,F of the c!pit!l stock
outst!ndin" !nd entitled to vote is o@ned !nd held b5
citi>ens of the PhilippinesH or ! trustee of funds for
pension or other e6plo5ee retire6ent or sep!r!tion
benefits/ @here the trustee is ! Philippine n!tion!l
!nd !t le!st J,F of the fund @ill !ccrue to the
benefit of the !fore6entionedH Provided / th!t @here !
corpor!tion !nd its non7Filipino stockholders o@n
stock in ! re"istered enterprise/ !t le!st J,F of the
c!pit!l stock outst!ndin" !nd entitled to vote of both
corpor!tion 6ust be o@ned !nd held b5 the citi>ens of
the Philippines !nd !t le!st J,F of the 6e6bers of the
Bo!rd of .irectors of both corpor!tion 6ust be
citi>ens of the Philippines in order th!t the
corpor!tion sh!ll be considered ! Philippine n!tion!l4
Section 16 P*e+e**e/ o+ In&e't0ent ? h!ll 6e!n the econo6ic
!ctivities or pro8ect decl!red !s such under Ch!pter
I1 ec4 ++ of this Code4
Section 15> ?onin7 O*/in)nce ? h!ll 6e!n the le"!l tr!nsl!tion of
the Co6prehensive L!nd 'se Pl!n ;CL'P< of ! Loc!l
*overn6ent 'nit4
Section 18 En&i*on0ent)!!, F*ien/!, P*o%ect' ? Those pro8ects not
enu6er!ted in Presidenti!l .ecree &o AE-JH
Presidenti!l Procl!6!tion &o4 +A2J/ AK-A !nd
Procl!6!tion +A2J of &!tion!l #nviron6ent!l Protection
Council Office Circul!r &o4 (/ eries of AK-(4
Section 18 En&i*on0ent)!!, C*itic)! P*o%ect' ? Those pro8ects th!t
!re enu6er!ted in Presidenti!l .ecree &o AE-JH
Presidenti!l Procl!6!tion &o4 +A2J/ AK-A !nd
Procl!6!tion +A2J of &!tion!l #nviron6ent!l
Protection Council/ Office Circul!r &o4 (/ eries of
AK-(?Procl!i6in" cert!in !re!s !nd t5pes of pro8ects !s
#nviron6ent!ll5 Critic!l !nd @ithin the scope of the
#nviron6ent!l I6p!ct t!te6ent 5ste6 est!blished4
CHAPTER III THE MALAYBALAY CITY INVESTMENT PROMOTION BOARD
Section ": T1e M)!),$)!), Cit, In&e't0ent P*o0otion Bo)*/ 3MCIPS4 ?
h!ll i6ple6ent provisions of this Code4
Section "1 Co0#o'ition o+ Bo)*/ ? The M!l!5b!l!5 Cit5 Invest6ent
Pro6otion Bo!rd ;MCIPB< sh!ll be co6posed of the
follo@in" offici!ls3
!< Cit5 M!5or !s Ch!ir6!n
b< P Ch!ir on Tr!de/ Co66erce L Industr5 !s Co7Ch!ir
c< P Ch!ir on Fin!nce !nd Appropri!tion
d< Cit5 Pl!nnin" !nd .evelop6ent Coordin!tor
e< Cit5 Assessor
f< President of the M!l!5b!l!5 Cit5 Business Club !s Co7ch!ir
"< .TI Provinci!l .irector
h< Civil ociet5 G &*O Represent!tive
7 E 7
i< Civil ociet5 G &*O Represent!tive
8< Civil ociet5 G &*O Represent!tive
k< Licensin" .ivision Chief ? Cit5 M!5orBs Office
l< Touris6 !nd Invest6ent .ivision Chief ? Cit5 M!5orBs Office
6< Cit5 #nviron6ent !nd &!tur!l Resources officer
n< Cit5 A"riculturist
o< Ac!de6e
The identific!tion of the C G &*O Represent!tive ;onl5 those
@ho h!ve !ccredit!tion fro6 the cit5< !nd the Ac!de6e @ill "o
throu"h ! selection process to be conducted b5 the Bo!rd for
reco66end!tion to the LC# for !pprov!l4
Section "" D;tie' )n/ F;nction' o+ t1e Bo)*/ ? The M!l!5b!l!5 Cit5
Invest6ent Bo!rd sh!ll h!ve the follo@in" duties !nd
functions3
!< Pro6ul"!te rules !nd re"ul!tions to i6ple6ent the intent
!nd provision of the codeH
b< Approve or dis!pprove !ll !pplic!tion for re"istr!tion
b!sed on ection +J !nd i6pose such ter6s !nd conditions
!s it 6!5 dee6 necess!r5 to pro6ote the ob8ectives b!sed
on ec4 +E of this Code4
c< Periodic!ll5 check !nd verif5 the co6pli!nce of re"istered
enterprises @ith the relev!nt provisions of this code/
@ith the rules !nd re"ul!tions pro6ul"!ted under this code
@ith the ter6s !nd conditions of re"istr!tionH
p!rticul!rl5 @ith re"!rds to the hirin" of loc!l
residents/ !dherence to l!bor l!@s/ rules !nd re"ul!tions/
sourcin" of r!@ 6!teri!ls fro6 loc!l f!r6ers/
6!nuf!cturers !nd producers !nd the protection of the
environ6ent4
d< After due notice/ c!ncel the re"istr!tion or suspend the
en8o56ent of incentives or benefits of !n5 re"istered
enterprise for3 A< f!ilure to 6!int!in the criteri!
reDuired b5 this Code for re"istr!tion @ith the Bo!rd/ or
;+< for viol!tion of !n5 provisions of this code/ of the
i6ple6entin" rules !nd re"ul!tions issued under this code
!nd of the ter6s !nd conditions of re"istr!tionH
e< The Bo!rd @ill develop eli"ibilit5 reDuire6ents !nd
criteri! for Invest6ents incentives4
f< Periodic!ll5 revie@ the list of M!l!5b!l!5 Cit5 Invest6ent
Priorities ;MCIP< @ith the po@er to includeGeCclude other
Pro8ect #cono6ic Activities listed under Ch!pter I1 of
this Code4 The Bo!rd @ill co6e up @ith ! ne@ or ! revised
ne"!tive list @henever dee6ed necess!r54
"< *ener!ll5/ eCercise !ll the functions !nd po@ers necess!r5
to or incident!l to the !tt!ch6ent of the ob8ectives of
this CodeH
h< The Bo!rd @ill !dvoc!te L!nd B!nkin" for est!blish6ent of
econo6ic >ones ;co66erci!l !nd industri!l pro8ects<H
8< Reco66end !6end6ents to this invest6ent Code !nd its IRR
ever5 ( 5e!rs4
7 J 7
Section "3 Meetin7' )n/ @;o*;0' ? The Bo!rd sh!ll 6eet !s often !s
necess!r5 on ! d!5 !nd pl!ce it 6!5 fiC4 The presence
of ! 6!8orit5 of its 6e6bers sh!ll constitute Duoru6
!nd ! 6!8orit5 of the Duoru6 in ! 6eetin" v!lidl5 held
sh!ll be reDuired for the Bo!rd to eCercise its po@ers
!nd perfor6 its functions4
CHAPTER IV PREFERRED AREA OF INVESTMENT
Section "( In&e't0ent P*io*itie' P!)n ? A list of priorit5
invest6ent !re!sG!ctivities sh!ll be prep!red !nd
dr!@n up b5 the Bo!rd/ @hich sh!ll include !nd
cont!in3
!< The specific !ctivities !nd "eneric c!te"ories of econo6ic
!ctivit5 @herein invest6ents !re to be encour!"ed !nd the
correspondin" products !nd co66odities to be "ro@n/
processed or 6!nuf!ctured pursu!nt thereto for the
do6estic or eCport 6!rketH
b< pecific public utilities @hich c!n Du!lif5 for incentives
under this Ordin!nce !nd @hich sh!ll be supported b5
studies of eCistin" !nd prospective re"ion!l de6!nds for
the services of such public utilities in the li"ht of the
level !nd structure of inco6e/ production/ tr!de/ prices
!nd relev!nt econo6ic !nd technic!l f!ctors of the
re"ions !s @ell !s the eCistin" f!cilities to product such
servicesH
c< pecific !ctivities @here the potenti!l for utili>!tion of
indi"enous non7petroleu6 b!sed fuels or sources of ener"5
c!n best be pro6oted eCcept @ood7b!sed !nd co!l7fired
po@er "ener!tin" pl!ntsH
d< All other environ6ent!ll5 friendl5 pro8ectsH !nd
e< uch other infor6!tion/ !n!l5ses/ d!t!/ "uidelines or
criteri! !s the Bo!rd 6!5 dee6 !ppropri!te4
The identifiedGfor6ul!ted Invest6ent Priorities Pl!n ;IPP< 6!5
be revised 5e!rl5 for 6!Ci6u6 fleCibilit5 !s the GBo!rd 6!5 dee6 it
necess!r54
Section ". P*o%ect' not Acce#t)$!e 7 All environ6ent!ll5 critic!l
pro8ects !s defined in ec4 AK !nd those included in
the &e"!tive List4
CHAPTER V - REGISTRATION OF ENTERPRISES
Section "6 Gene*)! C*ite*i) Fo* A!! Ente*#*i'e' ?#Cistin" business
enterprises !nd ne@ investors @ho intend to !v!il of
the incentive provided in this Code 6ust 6eet the
follo@in" criteri!3
A4 The investors princip!l production f!cilit5 @ill be loc!ted
@ithin the territori!l 8urisdiction of the cit5/ provided3
7 ) 7
!4A The investors 6ust be ! ne@ business sole proprietorship/
corpor!tion or p!rtnership/ dul5 re"istered @ith the
ecurities !nd #Cch!n"e Co66issionH if ! sin"le
proprietorship/ it 6ust be dul5 re"istered @ith the
.ep!rt6ent of tr!de !nd Industr5H !nd 6ust h!ve its
princip!l office loc!ted @ithin the Cit5/ @ith !
Cooper!tive/ it 6ust be re"istered @ith the C.AH
!4+ The investors 6ust en"!"e in !ctivities 6entioned in IPAs
list !tt!ched to of this Code includin" enterprises
re"istered !nd certified b5 the Bo!rd of Invest6ents !s
Pioneer !nd &on7Pioneer4
!4( The &e@ #nterprise 6ust h!ve ! tot!l business !sset of !t
le!st Three Million Pesos ; Php (/,,,/,,,4,, TOTAL
B'I&#9 A#T< !s defined to include current !nd fiCed
!ssets !nd to her resources intended to or to be utili>ed
b5/ the re"istered enterprise in the oper!tion !nd
6!inten!nce of its business eCcludin" l!nd4
B4 #li"ible eCistin" enterprises !re those @hose princip!l
production f!cilities !re !lre!d5 loc!ted @ithin the territori!l
8urisdiction of the cit5 !nd @hose proposed
eCp!nsionGdiversific!tion should princip!ll5 be loc!ted @ithin
the territori!l 8urisdiction of the Cit5/ provided the53
b4A Put7up ! business ;BRA&C%< office @ithin the territori!l
8urisdiction of the Cit5H
b4+ 'ndert!ke eCp!nsion of the eCistin" production c!p!cit5 or
construction of ! ne@ buildin" !nd other civil @orks for
the inst!ll!tion of ne@ 6!chiner5 !nd eDuip6ent or
i6prove6ents thereof @hich @ill result in !n incre!sed
production c!p!cit5 of +EF or ; refer to ec4 -<H
b4( Provide !ddition!l e6plo56ent -,F of @hich 6ust be
residents of M!l!5b!l!5 Cit54
b42 &o delinDuent t!Ces4
C4 The Business #nterprises sh!ll co6pl5 @ith the Re"ul!tions
stipul!ted in the current Co6prehensive L!nd 'se Pl!n ;CL'P<
!nd its :onin" Ordin!nce4
.4 The business enterprise h!d co6plied @ith !ll the reDuire6ents
6!nd!ted under eCistin" loc!l or n!tion!l l!@ !nd the
constitution4
Section "5 Re7i't*)tion ReA;i*e0ent' ? Applic!tion for re"istr!tion
6!5 be filed @ith the Touris6 !nd Invest6ent .ivision
under the Cit5 M!5orBs Office !fter p!56ent !t the Cit5
Tre!surerBs Office of ! non7refund!ble filin" fee of P
(/,,,4,, to"ether @ith the follo@in" docu6ents3
!4 Four ;2< copies of the co6plete Pro8ect tud5 sho@in" the
pro8ect/ covered b5 the !pplic!tion is econo6ic!ll5/
technic!ll5 !nd fin!nci!ll5 soundH
7 - 7
b4 Copies of3 for
A< P!rtnership !nd Corpor!tion ? #C Certific!te of
Re"istr!tion/ Articles of Incorpor!tion !nd B57 L!@s
+< in"le Proprietorship ? Certific!te of Business &!6e
Re"istr!tion issued b5 .TI
(< Fir6s Re"istered @ith BOI ? BOI Certific!te of
Re"istr!tion
2< Cooper!tive ? C.A Re"istr!tion !nd Certific!te of
*ood t!ndin"
c4 For corpor!tion !nd cooper!tives/ ! resolution of the
!pplic!ntBs Bo!rd of .irectors !uthori>in" the filin" of
!pplic!tion is reDuiredH
d4 List of .irectors !nd other princip!l officers !nd their
respective n!tion!lities !nd current !ddresses !s
certified b5 the Corpor!te ecret!r5 !nd/ ! certific!tion
b5 the corpor!te secret!r5 th!t the 6ini6u6 nu6ber of
directors reDuired to the Philippine n!tion!ls h!ve been
co6pliedH
e4 #nviron6ent!l Co6pli!nce Certific!te fro6 .#&R @hen
!pplic!bleH
f4 Infor6!tion on the !pplic!ntBs technic!l/ fin!nci!l/
6!rketin" !nd 6!n!"e6ent c!p!bilit5 !nd co6petence to
undert!ke the proposed pro8ect or business includin"
pro6otion!l coll!ter!ls if !n54
Section "8 Re7i't*)tion Fee ? Once !pplic!tion is !pproved b5 the
Bo!rd/ the enterprise sh!ll p!5 the re"istr!tion fee
scheduled !s follo@s3
Php A,/,,,4,, for (M to AEM invest6entsH
Php AA/E,,4,, for 6ore th!n AEM to +,M invest6entsH
Php A(/,,,4,, for 6ore th!n +,M to +EM invest6entsH
Php AE/,,,4,, for 6ore th!n +EM to (,M invest6entsH
Php (,/,,,4,, for 6ore th!n (,M invest6ents4
CHAPTER VI - RIGHTS AND OBLIGATIONS OF THE CITY GOVERNMENT AND
THE INVESTORS
Section "8 Ri71t' )n/ O$!i7)tion' o+ t1e Cit, Go&e*n0ent 7 To
enh!nce investor confidence in the incentives pro"r!6/
the Cit5 *overn6ent throu"h the M!l!5b!l!5 Cit5
Invest6ent Pro6otion Bo!rd sh!ll3
!< Cle!rl5 publish the econo6ic priorities of the cit5/
includin" t!r"et invest6ent !re!s !nd the "ener!l
conditions !pplic!ble to inco6in" direct priv!te
invest6ent !nd 6!int!in ! *eo"r!phic Infor6!tion 5ste6
d!t!b!se of cost fund!6ent!ls !nd other relev!nt
infor6!tion to prospective investorsH
b< Cle!rl5 co66unic!te invest6ent ev!lu!tion/ criteri! !nd
procedures to enh!nce tr!nsp!renc5 in the incentives
"r!ntin" processH
7 K 7
c< In the for6ul!tion or 6odific!tion of policies !nd
ordin!nces th!t effect invest6ents/ t!ke the fullest
possible !ccount of the need of the investors for
st!bilit5/ "ro@th !nd profit in their oper!tionsH
d< #nsure strict i6ple6ent!tion of conditions in invest6ent
pro8ects est!blished !nd !ccepted in the o@nership !nd
6!n!"e6ent structure of the enterpriseH
e< Reco"ni>e th!t there 6!5 be c!ses @here the invest6ents
@hich deserve hi"h priorit5 !re onl5 fe!sible on the b!sis
of tot!l forei"n o@nership sub8ect to provision provided
under eCistin" l!@s4
f< Address the need to !void undue distortion of co6petition
bet@een enterprises oper!tin" @ithin its territori!l
8urisdiction @hether do6estic or forei"n/ @hen "r!ntin"
!n5 speci!l eCe6ptions or incentives !i6ed !t encour!"in"
invest6ents in the identified t!r"et !re!s4
"< Provide ! st!ble/ predict!ble !nd tr!nsp!rent t!C s5ste6
@ith "ross s!les !nd receipts @ith re!l propert5 bein"
t!Ced !t r!tes @hich do not discour!"e priv!te
invest6entsH
h< &ot i6pose on @holl5 or p!rti!ll5 forei"n o@ned
enterprises/ t!Ces @hich !re hi"her or 6ore burdenso6e
th!t those to @hich do6estic enterprises !re sub8ect4
i< 'pon the reco66end!tion b5 !ppropri!te !"encies of the
n!tion!l "overn6ent/ per6it the e6plo56ent of Du!lified
forei"n personnel @here there is ! need for the efficient
oper!tion of the enterprises for tr!inin" purposeH !nd
8< Resolve !ll concern !s re"!rds the benefits !nd incentives
"r!nted under the ordin!nces en!cted for the purpose of
encour!"in" invest6ents sh!ll be f!vor!ble to both
"overn6ent !nd priv!te p!rties4
Section 3: Ri71t' )n/ O$!i7)tion o+ In&e'to*' )n/ Re7i'te*e/
Ente*#*i'e' ? Investors !nd re"istered enterprises
sh!ll h!ve the follo@in" ri"hts !nd obli"!tions3
!< #nsure/ in consult!tion @ith the Cit5 *overn6ent/ th!t its
proposed invest6ent fits s!tisf!ctoril5 @ith the
identified t!r"et invest6ent !re!sH
b< AdeDu!tel5 !nd full5 6!ke kno@n its eCpect!tions concernin"
the eCp!nsion of the enterprise e6plo56ent !nd 6!rketin"
prospects !nd the fin!ncin" of its oper!tion4
c< In response to the interest sho@n b5 the co66unit5 !bout
the invest6ent/ t!ke steps to provide relev!nt infor6!tion
!bout the oper!tions of the enterprise/ eCcept for
infor6!tion th!t should be @ithheld for propriet5 or
co6petitive re!sonsH
7 A, 7
d< In presentin" its invest6ent propos!l to the Cit5
*overn6ent/ eC!6ine !nd ende!vor to f!vor!bl5 consider
suit!ble propos!ls concernin" offerin" p!rt of the eDuit5
for purch!se or subscription b5 loc!l investors/ @henever
this is co6p!tible @ith the lon" ter6 econo6ic interest of
the enterpriseH
e< Co6pl5 @ith the l!@s !nd re"ul!tions in rel!tion to the
sub6ission of the necess!r5 fin!nci!l infor6!tion in
connection for the !ssess6ent !nd collection of t!CesH
f< #ncour!"e loc!l p!rticip!tion in the 6!n!"e6ent of the
loc!l enterprise !nd !ppoint Du!lified residents of the
co66unit5 to position of responsibilit5 !nd provide the
tr!inin" !nd eCperience necess!r5 for such positionsH
"< To the eCtent consistent @ith the efficient oper!tions of
the enterprise/ t!ke into !ccount the Cit5 *overn6entBs
effort to cre!te e6plo56ent opportunities in the
loc!lities @here the5 !re 6ost needed !nd should 6!ke the
6!Ci6u6 pr!ctic!ble use of loc!l personnelH
h< upport is invest6ent @ith !ppropri!te service !nd suit!ble
technolo"5 to ensure the full contribution to the loc!l
econo65H
i< Cooper!te @ith the Cit5 *overn6ent in ev!lu!tin" the i6p!ct
of its oper!tions on the environ6ent !nd t!ke steps to
6ini6i>e d!6!"e in so f!r !s it is econo6ic!ll5 !nd
technic!ll5 fe!sible in the loc!l situ!tionH
8< ub6it !nnu!l reports re"!rdin" their oper!tion !nd other
6!tters pert!inin" to the oper!tion of the businessH
k< Respect the &!tion!l !nd Loc!l l!@s !nd policies
CHAPTER VII - INCENTIVES FOR REGISTERED ENTERPRISES
Section 31 T)6 Incenti&e ;n/e* t1e Loc)! Go&e*n0ent Co/e ? The
follo@in" incentives 6!nd!ted under RA )AJ, other@ise
kno@n !s the Loc!l *overn6ent Code AKKA sh!ll be "iven
to Du!lified business est!blish6ents oper!tin" in the
Cit53
!< #Ce6ption fro6 inco6e t!Ces of ne@ !nd eCistin" BOI
re"istered enterprise for ! period of siC ;J< !nd four ;2<
5e!rs respectivel5 fro6 d!te of re"istr!tion !s 6!nd!ted
b5 the provisions of Loc!l Revenue code !nd other issu!nce
like the loc!l fin!nce circul!r no4 E7 K( d!ted October
++/ AKK( issued b5 the .ep!rt6ent of Fin!nce4
b< #Ce6ption fro6 t!Ces/ fees !nd ch!r"es !nd other i6position
upon "oods or 6erch!ndise c!rried into or out of/ or
p!ssin" throu"h the territori!l 8urisdiction of the Cit5/
tolls for ro!ds !nd brid"es/ or other t!Ces/ fees/ or
ch!r"es in !n5 for6 @h!tsoever upon such "ood or
6erch!ndiseH
7 AA 7
c< #Ce6ption fro6 t!Ces/ fees !nd ch!r"es of Philippine
Products !ctu!ll5 eCported eCcept collection of E,F of the
r!tes prescribed for 6!nuf!cturers/ etc4/ @holes!ler/
de!lers/ distributors/ etc4/ !nd ret!ilers b!sed on the
"ross s!lesGreceipts or the eCported products in
!ccord!nce @ith loc!l fin!nce circul!r no4 27K( d!ted =ul5
(,/ AKK( issued b5 the .ep!rt6ent of Fin!nceH
d< #Ce6ption fro6 t!Ces fro6 the "ross receipts of
tr!nsport!tion contr!ctors !nd person/ en"!"ed in the
tr!nsport!tion of p!ssen"ers or frei"ht b5 hire !nd co66on
c!rriers/ eCcept tric5cle oper!tionH !nd
e< I6position of E,F of the r!tes prescribed for
6!nuf!cturers/ etc4/ @holes!lers/ de!lers/ distributors/
etc4/ !nd ret!ilers on the "ross s!les of essenti!l
co66odities listed under the Article +(+ C of the
I6ple6entin" Rules !nd Re"ul!tion of the loc!l "overn6ent
code4
Section 3" T)6 Incenti&e to Re7i'te*e/ Ne< Ente*#*i'e ? A ne@l5
est!blished M!l!5b!l!5 Cit5 Re"istered Business
#nterprise re"istered under this code/ sh!ll en8o5 the
follo@in" t!C incentives3
!< M!chiner5 !nd eDuip6ent !nd incident!l c!pit!l cost used
for pollution control !nd environ6ent!l protection sh!ll
be eCe6pt fro6 the re!l propert5 t!Ces pursu!nt to ection
+(2e of RA )AJ, other@ise kno@ !s the Loc!l *overn6ent
code of AKKA4
b< #Ce6ption fro6 the follo@in" t!Ces @ithin three ;(< 5e!rs
fro6 the d!te of !pprov!l of re"istr!tion4
A4 The tr!nsfer t!C i6posed under Ch!pter + Article A
ection A(E of RA)AJ, on the s!le/ don!tion/ b!rter/
or !n5 other 6ode of tr!nsfer o@nership or title of
re!l propert5 loc!ted in the cit5 o@ned b5 !
M!l!5b!l!5 Cit5 Re"istered Business #nterprise4
+4 #Ce6ption fro6 p!56ent of Re!l Propert5 T!C4
(4 #Ce6pted fro6 p!56ent of Business T!Ces
24 #Ce6pted fro6 p!56ent of A6use6ent T!C4
Section 33 T)6 Incenti&e' to Re7i'te*e/ E6#)n/in7 Ente*#*i'e' ?
Re"istered eCp!ndin" enterprises Du!lified under this
Code sh!ll en8o5 the follo@in" T!C Incentive3
!< M!chiner5 !nd eDuip6ent used specific to pollution control
!nd environ6ent protection sh!ll be eCe6pt fro6 re!l
propert5 t!Ces pursu!nt to ection +(2e of RA )AJ,/
other@ise kno@n !s the Loc!l *overn6ent Code of AKKA4
Section 3( M)!),$)!), Cit, In&e't0ent P*o0otion O++ice 7 The
Touris6 !nd Invest6ent Pro6otion .ivision of the Cit5
M!5orBs Office @ill est!blish the best possible
environ6ent for the investors4 It sh!ll provide !
co6prehensive r!n"e of services such !s3
i4 Or"!ni>e investorBs visit;s< !nd @ork out their
itiner!r54
7 A+ 7
ii4 Provide econo6ic infor6!tion !nd st!tistics of M!l!5b!l!5
Cit5
iii4 Arr!n"e site visits to possible business loc!tion !nd
other f!cilities
iv4 Link investors @ith possible business loc!tion !nd other
f!cilities
v4 Brief investors on "overn6ent policies on invest6ent/
!v!il!ble incentive/ @!"e l!@s/ reDuired per6its/ etc4
vi4 Provide !ssist!nce in securin" license !nd per6its
vii4 Assist in tr!de f!cilit!tion !ctivities
viii4 Identif5 est!blished profession!l or"!ni>!tion th!t c!n
provide investors @ith 6!n!"eri!l services/ 6!npo@er
services/ !ccountin"/ !uditin"/ etc4
iC4 Accept investorBs !pplic!tion for revie@ of the Bo!rd
C4 Arr!n"e invest6ent 6issions
Ci4 Or"!ni>e invest6ent for!
Cii4 Act !s ecret!ri!t to the Invest6ent Pro6otion Bo!rd
Ciii4 Conduct inspection !nd 6onitor for co6pli!nce of the
provision of this Code4
Civ4 Conduct studies !nd rese!rches
Cv4 F!cilit!te 6!rketin" str!te"ies
Cvi4 Conduct initi!l !nd periodic pl!nnin"
Cvii4 Periodic!ll5 upd!te the @eb site !nd est!blish InvestorBs
.!te B!seGprofile
Cviii4 Accept !nnu!l reports !nd other 6!tters pert!inin" to
their business oper!tion !nd furnish copies to the
6e6bers of the Bo!rd4
CHAPTER VIII F2NDING
Section 3. F;n/in7 ? The Cit5 *overn6ent sh!ll !ppropri!te !nnu!l
bud"et in the !6ount of not less th!n One Million Five
%undred Thous!nd Pesos ;Php A/E,,/,,,4,,< to3
A< .efr!5 the eCpenses of the Bo!rd
+< %onor!riu6 of the 6e6bers of the Bo!rd/ sub8ect to the
usu!l !ccountin" !nd !uditin" rules !nd re"ul!tions4
CHAPTER IB - TRANSITORY PROVISIONS
Section 36 De'c*i#tion ? 9ithin J, @orkin" d!5s fro6 the !pprov!l
of this Code/ the Cit5 M!5or sh!ll pro6ul"!te the
I6ple6entin" Rules !nd Re"ul!tions includin" the
&e"!tive List !nd the invest6ent priorit5 !re!s4
Section 35 C;/ici)! Re!ie+ ? All orders or decisions of the Cit5
M!5or in c!ses involvin" the provision of this Code
sh!ll be fin!l/ eCecutor5 !nd non7!ppe!l!ble4
CHAPTER B - FINAL PROVISIONS
Section 38 Se#)*)$i!it, C!);'e ? If for !n5 re!son or !n5 p!rt or
p!rts of this Code sh!ll be held unconstitution!l or
void/ other p!rts or provisions hereof @hich !re not
!ffected thereb5 sh!ll continue to be in full force !nd
effect4
7 A( 7
Section 38 E++ecti&it, ? This Code sh!ll t!ke effect i66edi!tel5
upon the public!tion of the I6ple6entin" Rules !nd
Re"ul!tions in !n5 6!teri!l of "ener!l circul!tion4
#&ACT#.4
7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7
9# %#R#BY C#RTIFY th!t the fore"oin" ordin!nce is true4
#MPORIA&A A4 PAR#.#
!n""uni!n" P!nlun"sod ecret!r5
Officer7In7Ch!r"e
APPRO1#./ &O1#MB#R 2/ +,,-3
M#LC%OR P4 MARAMARA
Cit5 Councilor
Te6por!r5 Presidin" Officer
APPRO1#.3
FLOR#&CIO T4 FLOR#/ =R4
Cit5 M!5or
VPALDEGUER/vas