REPUBLIC OF THE PHILIPPINES

CITY OF ILOILO
OFFICE OF THE SANGGUNIANG PANLUNGSOD
EXCERPT FROM THE MINUTES OF THE 25 1h REGULAR SESSION OF THE
SANGGUNIANG PANLUNGSOD OF THE CITY OF ILOILO, PHILIPPINES, HELD AT
THE SESSION HALL, 2No FLOOR, ILOILO TERMINAL MARKET BUILDING, ON
WEDNESDAY, JULY 5, 2006
PRESENT:
HON. GUILLERMO Y. DE LA LLANA
Presiding Officer
HON. STEVIE REY ABIT ANG, Pres., SK Federation
Ex-Officio Member
HON. JULIENNE L. BARONDA
Member
HON. JOSE S. ESPINOSA, III, Assistant Floor Leader
Member
HON. ELY A. ESTANTE, JR.
Member
HON. JEFFREY P. GANZON
Member
HON. MERCI DRILON-GARCIA
Member
HON. ERLINDA G. LIBERIAGA
Member
HON. JED PATRICK E. MABILOG
Member
HON. MARIETTA V. ORLEANS, Pres., Liga ng mga Brgy. Ex-Officio Member
HON. ARMAND S. PARCON
Member
HON. EDUARDO L. PENAREDONDO, Floor Leader
Member
Member
HON. ERWIN J. PLAGATA
Member
HON. PERLA S. ZULUETA
ABSENT:
Member

HON: RAMON CUA LOCSIN

( )\r '
t~ ;

11 : ' 1 f

jl

' '

i
i .

I1

l(

)1,

!/()

fL!JtwW,.
r4-JQ, Uc&

1&-tVt tt4L Vi '-a&M

REGULATION ORDINANCE NO. 2006-114

THE EXP ANDED ILOILO CITY INVESTMENT INCENTIVES
ORDINANCE OF 2006
Sponsored by Councilor Jed Patrick E. Mabilog, co-sponsored by
Councilor Armand S. Parcon and seconded by Councilor Eduardo L.
Penaredondo

Be it ordained by Sangguniang Panlungsod of the City of Iloilo, as it is hereby ordained,

that:
CHAPTER I
TITLE AND DECLARATION OF POLICY

Section 1- Title.
This Ordinance shall be known as "The Expanded Iloilo City Investment Incentives
Ordinance of 2006."

2
Regulation Ordinance No. 2006-114, July 5, 2006

Section 2-

Declaration of Policies.

It is the policy of the City of Iloilo to attract and promote domestic and foreign
investments in identified priority areas of economy; to provide significant employment
opportunities to local residents; to increase productivity and improve utilization of the city's
resources; to improve the technical skills of people employed in the enterprises; and to create an
environment conductive for the start up growth and expansion of business.

The City shall grant fiscal and non-fiscal incentives to persons or entities whose business
significantly support the above-stated policies.

CHAPTER II
INVESTMENT INCENTIVES BOARD
Section 3-

The Iloilo City Investment Incentives Board.

There is hereby created the Iloilo City Investment Incentives Board(ICIIB) to carry out
the provisions of this Ordinance.

Section 4Chair:
Vice Chair:

Composition of the Board.

City Mayor
Chair, Iloilo Business Club

Members:
1. Two(2).representatives of the Sangguniang Panlungsod
a. Chair, SP Committee on Trade and Industry
b. Chair, SP Committee on Tourism, Culture and Historical Affairs
2. Representative, Office of the City Mayor
3. City Treasurer
4. City Planning and Development Coordinator
5. City Legal Officer
6. Director, DTI-Iloilo
7. Director, DOLE-Region VI
8. President, Filipino-Chinese Chamber of Commerce of Iloilo, Inc.
9. President, Chamber of Commerce and Industry of Iloilo, Inc.
10. President, Bankers' Association of Iloilo
11. President, Philippine Retailers Association- Iloilo Chapter
12. President, Iloilo Hotels, Resorts and Restaurants Association
A member of the Board shall designate a permanent alternate in his/her behalf.
The membership of the Board may be changed through an amendment of this Ordinance
by the Sangguniang Panlungsod (SP) upon the recommendation of the Board.

Section 5-

Meeting and Quorum of the Board.

The Board shall meet at least once every quarter or as deemed necessary, at such day and
time as it may fix. The presence of the majority of all the members shall constitute a quorum.

3
Regulation Ordinance No. 2006-114, July S, 2006

Section 6-

Powers and Functions of the Board.

The Board shall establish policies and guidelines which will encourage domestic and
foreign investments and business activities consistent with the development needs of Iloilo City.
Pursuant to this, the Board shall be vested with the following powers and functions:
a)
b)
c)
d)
e)
f)

g)
h)

i)

To promulgate rules, regulation and guidelines for the implementation of this Ordinance;
To receive, evaluate and approve all applications for incentives under this Ordinance;
To identify, update or amend the Investment Priority Areas(IPA);
To adopt an investment program, which shall list the priority investment areas/activities
and prescribe the corresponding incentives and support measures;
To review the package of appropriate incentives and support measures, and recommend
the same to the City Council;
To revise or discontinue the grant of incentives or support measures for a duly identified
area of economic activity included in the Investment Priority Areas(IPA);
To designate a Secretariat and a Technical Working Group(TWG) to assist the Board in
the implementation of the provisions of this Ordinance;
To source out materials and financial resources with other institutions in order to
augment the budget allocated by the Iloilo City Government in carrying out projects and
activities related to the implementation of this Ordinance; and
To enter into agreements with other government agencies, and/or private sector
organizations for the effective and efficient implementation of this Ordinance.

CHAPTER III
DEFINITION OF TERMS
Section 7- Definition of terms.
a) Board- shall refer to the Iloilo City Investment Incentives Board(ICIIB) created
under this Ordinance.
b) Bonafide Resident- refers to a person who has resided continuously for at least
six (6) months in the City of Iloilo prior to his/her employment with the applicants
enterprise.
c) City- shall mean the City of Iloilo covering all areas within its territorial
jurisdiction as provided for by law and its charter.
d) Employment- refers to the hiring of individuals by the business.
e) Existing Business/Enterprises- shall refer to those business which are in operation
and have secured appropriate city permits and licenses and whose production
areas are located within the territorial jurisdiction of the City of Iloilo prior to the
approval of this Ordinance and have not previously availed of the herein
incentives.
f) Expansion of Business/Enterprises- shall refer to existing business which shall
increase their capitalization, production capacity/ volume of operation,
employment and putting up of new physical structure and facilities in a different
location, and have not previously availed of the herein incentives.
g) Investment Amount- Total amount of expenditure put up in the business. It shall
include pre-opening, working capital requirements and physical or fixed assets
but to exclude the cost of the land. For expansion projects, only the incremental or
additional investments put up to operate the expansion shall be considered in
determining the total amount of investment.
h) New Business/Enterprises- shall refer to those business which are not yet in
operation prior to the approval of this Ordinance.

'I

- , ... ~, .. ~-.,,...,-:;r.--~.~~v.~;,ufl

4
Regulation Ordinance No. 2006-114, July 5, 2006

i) Ordinance- shall refer to the Expanded Iloilo City Investment Incentives

Ordinance of 2006.
j) Registered Business/Enterprises- shall refer to any business/enterprises qualified
and issued a Certificate of Registration to avail of incentives under this
Ordinance.
CHAPTER IV
INVESTMENT PRIORITY AREAS
Section 8- Investment Priority Areas (IPA)

A list of priority investment shall be drawn up by the Board covering the following areas:
a)
b)
c)
d)
e)
f)
g)

h)

Manufacturing and processing enterprises

Export-oriented industries
Tourism- oriented industries
Utility companies engaged in power generation and distribution, water,
transportation support facilities and those of similar in nature
Information and Communication Technology Enterprises
Agro- Fishery
Social services
1. Health Care Services
2. Educational Institution
3. Low-Cost Housing
4. Sports and Recreation
Commercial buildings applied to Section 8 (letters a-g) only.
CHAPTERV
REGISTRATION OF ENTERPRISES

Section 9- Qualifications of New Business/Enterprises.

New business/enterprises who intend to register and avail of the incentives provided in
this Ordinance must meet the following qualifications:
a) That the place of operation or production will be located within the territorial
jurisdiction of the City of Iloilo. This shall include the opening of the Branch
within Iloilo City by an enterprise conducting business outside of the City.
b) Engaged or will engage in the areas of investment as listed in the Iloilo City
Investment Priorities Plan.
c) That the actual investment is at least Five Million Pesos(Php 5,000,00.00) which
shall be based on the total project cost stated in the investor's study submitted to
and approved by the Board
d) Will provide employment to bonafide residents of Iloilo City, of not less than:
25 for investment worth P 5 Million but Jess than 20 Million
50 for investment worth P20 Million but less than 40 Million
100 for investment worth P40 Million and above
Provided that enterprises/industries using information, communication technology
facilities, automated devices and equipment and the like requiring highly technological expertise
or training maybe exempted from this requirement subject to the review of Technical Working

><

-r'

H------

-..""'.~"':~~:;""/.,.

:
rl
F

5
Regulation Ordinance No. 2006-114, July 5, 2006

Group(TWG) duly created for the purpose by the Board subject to the review and
recommendation of the TWG and approval of the Board.
Section 10- Qualification of Existing Business/Enterprise.
An existing business/enterprise who intend to register and avail of the incentives under

this Ordinance, must meet the following qualifications:

a) That the existing business/enterprise whose place of operation is already located
within the territorial jurisdiction of the City of Iloilo, will expand its operation by
an additional investment of at least Five Million Pesos (Php 5,000,000.00)
b) Will be able to hire additional employees who are bonafide residents of Iloilo
City of not less than:
25 for additional investment worth P 5 Million but less than P 20 Million
50 for additional investment worth P 20 Million but less than P 40 Million
100 for additional investment worth P 40 Million and above
c) The prospective: business I enterprise has complied with all applicable laws
d) The business I enterprise must engage in activities mentioned in the Iloilo City
Investment Priorities Plan
Provided that enterprises/industries using information, communication technology
facilities, automated devices and equipment and the like requiring highly technical expertise or
training maybe exempted from this requirements subject to the review of Technical Working
Group(TWG) duly created for the purpose by the Board. Findings/recommendations shall be
subject to the approval of the Board subject to the review and recommendation of the TWG and
approval of the.Board.
Section 11- Limitations on Availment of Incentives.
Investors and enterprises referred to under Section 9 and 10 of this Ordinance can avail of
the incentives granted herein only once.
Section 12- Requirements.
Investor/enterprise qualified under Section 9 and 10 of this Ordinance shall file the
application not later than sixty(60) days from the start of its commercial operations. The
application shall be considered officially accepted upon submission and/or payment of all the
following:
a) Three sets of the following documents:
1) Duly filled-up and notarized application form to be provided by the Board
in accordance with the provisions of this Ordinance;
2) Certified true copy of applicant's Certificate of Registration with the
Securities and Exchange Commission, Department of Trade and
Industries, Cooperative Development Authority or other concerned
government licensing agency, as may be applicable;
3) Project study of the proposed investment showing that the project is
economically, technically, and financially feasible and viable;

6
Regulation Ordinance No. 2006-114. July 5. 2006

4) Secretary's Certificate of the Board's resolution authorizing the applicant

and the designation of the representative to sign documents and transact
business with the Board;
5) For existing enterprise, an audited financial statement and income tax
return for the past three(3) years; and
6) Other documents as may be required by the Board.
b) Payment of non-refundable filing fee of One Thousand Pesos(Php 1,000.00) for
each application. Provided that all the documentary requirements specified under
Section 12-a have been duly complied with.

Section 13- Approval .

The Board shall act on applications within thirty (30) working days from the receipt of
complete requirements specified under Section 12.

Section 14- Issuance of Certificate of Registration.

An Enterprises/Investor whose application was approved under this Ordinance shall be
issued a Certificate of Registration duly signed by the City Mayor and/or the Chairman of the
Board.
The Certificate of Registration shall be issued upon payment of a non-refundable
registration fee in the following amount:
P 2,000.00 for investment or total project cost of P 5 Million but less than P 10 Million
P 5,000.00 for investment or total project cost of P 10 Million but less than P 20 Million
Pl 0,000.00 for investment or total project cost of P 20 Million but less than P 30 Million
P15,000.00 for investment or total project cost of P 30 Million but less than P 40 Million
P25,000.00 for investment or total project cost of P 40 Million and above

CHAPTER VI
INCENTIVES TO REGISTERED ENTERPRISES
Section 15- Period of Availment.
A registered enterprise shall enjoy the fiscal incentives provided herein for a fixed period
corresponding to the actual amount of investment put up by the investor/enterprises under the
following brackets
INVESTMENT
P 5 Million but less than P20 Million
P 20 Million but less than P40 Million
P 40 Million and above

INCENTIVE PERIOD
One Year
Two Years
Three Years

Section 16- Reduction of Business Taxes.

A registered enterprise under this Ordinance shall enjoy a reduction of business taxes
based on gross sales/receipts or realized during the preceding calendar year, to wit:

7
Regulation Ordinance No. 2006-114, July 5, 2006

a) New Enterprises:
Year of Operation
First Year
Second Year
Third Year

% of Reduction
75

50
25

b) Expanding Enterprises:
Year of Operation
First Year
Second Year
Third Year

% of Reduction
60
40
20

Section 17- Non-Fiscal Incentives.

A registered enterprise shall be entitled to the following non-fiscal incentives which
include but not limited to:
a) Assistance in securing additional business permits and other related data
b) Facilitating access to financial and technical assistance programs of the
government
c) Facilitating service connections with local utilities and other services as maybe
recommended by the Board.
Section 18- Tax Credi.ts.
Enterprises that have been granted incentives under this Ordinance but have paid their
corresponding business taxes prior to the approval of the grant of incentives shall apply such
payment as tax credits for its subsequent business tax obligations.
CHAPTER VII
FINAi... PROVISIONS
Section 19-Appropriations.
The amount of two hundred thousand pesos(P 200,000.00) shall be appropriated
chargeable against the 20% Development Fund of the Internal Revenue Allotment (IRA) of the
City Government to defray the necessary or incidental expenses for the implementation of the
provision of this Ordinance.
Thereafter, the City Government shall annually appropriate funds based on the proposed
budget submitted by the board.
Section 20- Implementing Rules and Regulations (IRR).
Within 30 days from the effectivity of this Ordinance, the Board shall formulate the
corresponding Implementing Rules and Regulations which shall take effect upon approval by the
City Mayor.

8
Regulation Ordinance No. 2006-114, July 5, 2006

Section 21- Interpretation.

All disputes pertaining to the interpretation and implementation of this Ordinance shall be
resolved in favor of the City of Iloilo.

Section 22- Penal Clause.

Violation of any provisions of this Ordinance shall carry an imprisonment of not
exceeding three months or a fine not exceeding P 5,000.00 and/or revocation of incentives
depending on the gravity of the violation as determined by the Board.

Section 23- Judicial Relief.

All orders or decisions of the Board/City Government in cases involving the provisions
of this Ordinance shall immediately be final and executory.

Section 24- Separability Clause.

The provisions of this Ordinance are declared separable. The invalidity of the other
provisions or of one or more: provisions shall not affect the validity of the other provisions
thereof.

Section 25- Repealing Clause.

All Ordinances, Executive Orders, Implementing Rules and Regulations and all issuances
inconsistent with the provisions of this Ordinance are hereby repealed or modified accordingly.

Section 26- Effectivity.

This Ordinance shall take effect fifteen (15) days after its publication in a newspaper of
local circulation.
ENACTED. July 5, 2006.
I hereby certify to the correctness of the above-quoted ordinance.

UTH H. ARROYO
oard Secretary IV

COUNTERSIGNED:

ATTESTED: