Investment Code of Dagupan

The Sanggunian Panlungsod of Dagupan City is currently tackling a major ordinance, the INVESTMENT CODE of DAGUPAN, that may change the landscape of investment opportunity in the city. The City of Dagupan is about to acquire all accreted foreshore land in the city of Dagupan via the MLA with the intention of making it a Special Economic Zone. The city as of the moment has limited financial resources and has maximize the allowable limit in loaning its IRA and existing Real Properties. There is a need to be creative and entice investors to invest in the economic zone to make it a reality. SECTION 2 of the Investment Code states

“ Declaration of Policy. –to jumpstart and accelerate the economic development of Dagupan City and Improve the quality of life of its people in accordance with the city’s comprehensive development plan and zoning ordinance, it is hereby declared to be the policy of the city of Dagupan to encourage new investments or expansions/diversification in agri-business activities, e.g. fish processing plant, canning/packaging of fish products and fruits; tourism facilities like mid-range hotels, hostels, beach and golf resorts; transshipment facilities including, but not limited to, port infrastructure and common bonded warehouses; miscellaneous light manufacturing activities such as garments, footwear, furniture, kitchenware, etc., information and communication technology related services such as call centers, business process outsourcing, property development areas of investments as may be determined from time to time, which will provide employment opportunities, raise the standard of living of the people of Dagupan City, and provide for an equitable distribution of wealth.”

The City of Dagupan welcomes and encourages domestic and foreign capital to establish enterprises and business operation either as a principal office or branch that would utilize substantial amount of labor, raw materials and natural resources of the City. The City shall encourage and promote the establishment and operation of non-government organizations to serve as active partners in achieving local development and autonomy. CHAPTER VIII. INCENTIVES TO REGISTERED ENTERPRISES SECTION 21. Tax Incentives to Registered Enterprises. –In addition to the incentives provided by law e.g. Omnibus Investment Code and by the local Government Code of 1991, a registered enterprise qualified under this Code shall enjoy the following tax incentives: a. Within three (3) years from the start of commercial operations, a registered enterprises under this code shall be fully exempt from the Mayor’s permit fees, building permit fess, business sales taxes, and other fees and charges imposed under existing city ordinances; b. Exemption from the basic real property tax due the City, excluding the barangay share and SEF, under the City Revenue Code for a period of two (2) years from the affectivity (accrual) of its real property tax. c. In no case shall the registered enterprise avail of these incentives for a period of three (3) years. SECTION 16. Qualifications of Existing Enterprise. – An existing enterprises may avail of the incentives of this code provided that it meets the following requirements: a. That the business enterprise must have complied with all the requirements mandated under existing local and national laws and Constitution; b. That the expansion/diversification must engage in activities mentioned in Section 2 hereof or in other preferred areas of investments as may hereafter be declared by the Board; c. That the existing enterprise whose place of operation or production is already located within the territorial jurisdiction of Dagupan City, but which will undertake any of the following activities/projects; i) Relocates its principal office from the places in the Philippines to Dagupan city; or ii) Expand its existing production capacity or construct new buildings and other civil works for the installation of new machinery and equipment or improvements thereof which will result in an increase in its production capacity and increase manpower requirements. d. That the expansion/diversification shall have a capitalization of at least One million Pesos but less than Ten Million Pesos in case of a small-scale enterprise; at least Ten Million Pesos but not more than Forty Million Pesos in case of a medium- scale enterprise; and more than Forty Million Pesos in case of a large industry; provided, that the amount of capitalization shall be based n the total project cost of such expansion/diversification as stated in the investor’s project study submitted to and approved by the Board; e. That the expansion/diversification shall provide out of its labor force requirement, an employment of no less that ten (10) persons in case of a small- scale enterprise; at least twenty (20) persons in case of a medium-scale enterprise; and at least one hundred (100) persons in case of a large industry, who are bonafide residents of Dagupan City. SECTION 17. Application Requirements. – Application shall be filed with the Center duly recorded in a registration book and the date appearing therein and stamped on the application shall be considered the date of official receipt thereof. A non-refundable filling fee to be determined and set by the Board shall be paid together with the following documents for registration: a. 3 copies of completed application form to be provided for by the Center in accordance with the provision of this Code. b. A copy of the complete project study of the proposed investment showing the project is economically, technically, and financially feasible and viable; c. A certified true copy of its Certificate Registration, Articles of Incorporation and by-Laws with the Securities and Exchange Commission and Business Registration with the Department of Trade and Industry, in case of single proprietorship; and d. Resolution of the applicant’s Board of Directors, in case of a corporation or partners I case of partner ship, authorizing the filing of application. SECTION 15. Qualifications of a New Enterprise. – New investors who intend to avail of the incentives provided in this Code must meet the following qualifications: a. That the business enterprise must have complied with all the requirements mandated under existing local and national laws and Constitution; b. That the prospective investor’s place of operation or production be located within the territorial jurisdiction of Dagupan City. c. That the prospective investment must engage in activities in preferred areas of investment as may hereafter be declared by the Board; d. The new enterprise must have a capitalization of at least One Million Pesos but not more than ten Million Pesos in case of a small-scale enterprise; and more than Forty Million Pesos in case of a large industry ; Provided , that the amount of capitalization shall be based on the total project cost as stated in the investor’s study submitted to and approved by the Board; and e. That the new enterprise will provide , out of its labor force requirement an employment of no less than ten (10) persons in case of a small-scale enterprise; at least twenty (20) persons incase of a medium-scale enterprise; and at least one hundred (100) persons incase of a large industry who are bonafide residents of Dagupan City. CHAPTER IV. DAGUPAN CITY TOURISM AND INVESTMENT PROMOTION CENTER SECTION 8. Dagupan City Tourism and Investment Promotion Center (The Center). – There shall be created an office known as the Dagupan City Tourism and Investment Promotion Center, which shall be staffed by one (1) Executive Assistant-III, one (1) Economist, and one (1) Economic Researcher. The Center shall be attached as regular division of the Office of the Mayor and coordinate closely with the City Planning and Development Coordinator and City Treasurer. QUESTIONS AND CLARIFICATIONS that need to be settled via a Public Hearing so Dagupenos will feel that this INVESTMENT Code was made by them for the City of Dagupan and its people. Participation of the citizenry is required. 1. How much will the CITY lose in actual income from the existing Businesses that are already registered in the CITY? As of the moment can the city afford this? Can we ask the assessors office who has records of the RPT? Can we ask the Treasurer who has records of the collections for Permits? Can we ask the Budget officer who has records of what needs budgeting? 2. Do we have a computation on the potential businesses still available to fill the existing demand of the industry like Tourism? Questions like, How many beds are still needed? Where are the other Areas for development other than the Special Economic Zone? Are there local landowners willing to develop there area as Economic Zones? Can we ask the Tourism Officer and City Planning to discuss this? 3. Do we have a forecast of the possible expansion of these industries via this Investment Code? Can we ask for a Public Hearing to be attended by the different existing operators of what they can offer and what they think is needed to improve the existing industry? 4. For totally new industries THAT SHALL MAKE DAGUPAN GREAT at par with SINGAPORE, we see no problem in it as this shall not affect the existing income of the city. Existing industries only need to justify the need for this and show the potential income it could generate for the city and for them that shall make their industry grow. WE NEED THIS INVESTMENT CODE. WE ASK THE PEOPLE OF DAGUPAN TO PARTICIPATE IN THE CRAFTING OF THIS LAW.