Business-friendly town passes local investment incentive ordinance
Tacloban City (February 25) -- Living up to its being a business friendly municipality, the Local Government of Tanauan, Leyte recently passed an ordinance that will further attract and boost investors' confidence in putting up business in the municipality.
The ordinance known as the Local Investment Incentive Ordinance will entice new investors to come to Tanauan because of good business environment and tax incentives that the local government is making available to them.
Authored by Hon. Asterio Mario A. Villero, the Local Investment Incentive Ordinance was passed by the Sangguniang Bayan of Tanauan on January 28, 2008 and was signed and approved by Mayor Roque A. Tiu on February 1, 2008.
Mayor Roque Tiu said that the passage of this ordinance is the municipality's small contribution to Governor Carlos Jericho Petilla's efforts to invite investors into Leyte and Region 8 as a whole. This is also the town's contribution and support to the Arroyo Administration's effort to invite investors and generate more jobs for the Filipino people, Mayor Tiu added.
The Ordinance shall apply to any person, partnership or corporation, association or cooperative, provided that they meet the qualifications specified therein. The investor must be qualified to do business under existing national laws; must be duly registered with appropriate government agencies such as the Department of Trade and Industry; the Securities and Exchange Commission; the Cooperative Development Authority and other appropriate government agencies.
In order to avail of the investment incentives, the investor must have an initial capital of not less than P3 Million in case of Filipino investors and not less than $200,000. for foreign investors and that the type of business or investment must be among the list of identified priority or preferred areas of investment as set forth by the Tanauan, Leyte Investment Board which is chaired by the municipal Mayor, vice chaired by the Vice Mayor and with the specified government and private sectors as members.
The investor shall enjoy the privileges granted by the program for a period as maybe determined on the basis of the amount of investment put up by the investor under brackets specified in the ordinance.
A Philippine Investor with capital investment of P3 Million to 25 Million, for example shall be given 25% exemption in the business tax and 25 % in the real property tax, for a period of three (3) years.
The same privileges will be availed of by Foreign investors with capital investment of $200,000. to $1 Million.
Philippine investors with capitalization of P25 Million to P100 Million will be given 35% business tax exemption and 35 % real property tax exemption for a period of five (5) years while those with over P100 Million capitalization will enjoy 50% business tax exemption and 50 % real property tax exemption for a period of 7 years.
On the other hand, foreign investors with a capitalization of over $1 Million to $4 Million shall be given 35% business tax and 35% property tax exemptions for a period of five (5) years while foreign investors with over $4 Million capitalization shall enjoy 50% business tax and 50% real property tax exemptions for a period of seven (7) years.
Other tax holiday incentives shall also be enjoyed by all qualified and accepted investor applicants like exemption from payment of all licenses and permit fees, exemption from inspection and examination of Books of Accounts and other pertinent records of business.
The type or nature of business which the Municipality is giving priority, are labor generating enterprises; enterprises to be established in less developed areas of the municipality as maybe determined by the Zoning and Land Use Ordinance; manufacturing enterprises using raw materials available locally; manufacturing or processing plants; tourism oriented enterprises; pioneering enterprises; water and power resource development enterprises. (PIA 8) [top]