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Incentives to Registered Enterprises

Section 16.   Fiscal Incentives-  In addition to the incentives provided by law and by the Local Government Code of 1991, a registered enterprise qualified under this code shall enjoy the following fiscal incentives:
a)    From the date of approval of registration by the Board up to the start of its commercial operation a pioneer enterprise registered under this Code, shall be fully exempt from all kinds of local licenses, fees and charges imposed under the existing Provincial Revenue Code or specifically but not limited to Articles 224, 225, 226, 227, 228 and 229 of the Rules and Regulations Implementing the Local Government Code of 1991 for a period of four (4) years from date of registration.
b)    In addition to the incentives provided for by laws and by the Local Government Code of 1991, a registered pioneer enterprise qualified under this Code shall within 6 years from the start of its operation, be exempt from the aforesaid provincial imposition in the conditions and manner prescribed herein;

1) for those employing 50% of their labor from qualified residents of the province

100% – for the 1st and 2nd year of operation

80% – for the 3rd year of operation

60% – for the 4th year of operation

20% – for the 5th year of operation

10% – for the 6th year of operation

0% – 7th year

2) for those employing 70% of their labor from qualified residents of the province;

100% – 1st to 3rd year

60% – 4th year

20% – 5th year

0% – 6th year

c) A tax reduction or tax credit for the expenditures of the construction of public infrastructures such as roads, bridges, pathways and etc., which is accessible to public use under the following percentage.

a) 50% – for the 1st and 2nd year

b) 30% – for the 3rd year

c) 10% – for the 4th year

d) 0% – for the 5th year

 

d) an existing enterprise local or foreign are likewise given incentives in the form of tax reduction or tax credit for expenditures as specified above for the following, to wit:

1.  construction of public infrastructure such as roads, bridges, pathways and etc., accessible to public use.

2.  aesthetic improvement on buildings and other structure for business use located in existing commercial center

3.  implementation of clean and green program such as but not limited to the tree planting at the designated area.

e) Lands whether commercial or residential use exclusively for parking purposes shall be exempted from the payment of Real Property Tax covering the first five (5) years of operation; Provided, however, that there is necessity for a parking space in that area; Provided further, that the mode of construction for the pavement or asphalt shall meet the standard requirements set by the Office of the Building Official, duly certified by the Provincial Planning & Development Office (PPDO) and approved by the Provincial Council; Provided furthermore, that no commercial activity shall be conducted within the premises and that all available parking spaces shall be opened to the general public of the first-come-first-serve basis; and Provided finally, that the PPDO shall promulgate the rules and regulations relative thereto, subject to the approval of the Sangguniang Panlalawigan (SP).
Section 17.   Fiscal Incentives Peculiar Only to Registered Enterprises on Preferred Investment Areas-  In addition to those incentives specified in the immediately foregoing paragraph, registered enterprises in preferred investment areas, shall be granted the following fiscal incentives

1. Exemptions from Real Property Tax – The exemptions shall be applicable only to the basic share of the province excluding the Special Educational Fund (SEF).

a) Exemptions from Real Property Tax of Industrial/Commercial Buildings and Improvements (in addition to existing prompt payment discounts) – Registered enterprises that construct new industrial or commercial buildings intended solely for the business activities of the enterprise, shall be extended Real Property Tax exemptions starting from the month of January of the following year after occupancy, graduated as follows:

b) Exemptions from Real Property Tax on Equipment Machineries and Devices (other than those used for anti-pollution & environment protection and in addition to existing prompt payment discounts) without limit on the value or acquisition price thereof:
2. Exemption from Business Tax on Gross Sales/Receipts
3. Deduction from gross sales/receipts of wages paid to personnel workers who are bonafide residents of Lanao del Norte.
Within a period of five (5) years from the start of operation, the enterprises shall be allowed to deduct fifty percent (50%) of the wages paid to personnel/workers, during the preceding calendar year, who are bonafide residents of Lanao del Norte. The Board shall prescribe the criteria of a bonafide resident of Lanao del Norte.
Section 18.   Appropriations- Registered micro, cottage, small and medium enterprise shall continue to enjoy full exemption as stated in Article 14 if it qualifies to be registered in the higher category of SME, otherwise the graduated exemptions availment shall not exceed 15 years.
Section 19.   Fiscal Incentives to Registered Enterprises on Non-Preferred Investment Areas-  Registered enterprises on non-preferred areas are nonetheless granted the following incentives:
a. Exemptions from Real Property Tax on industrial/commercial buildings and improvements from the month of January of the following year after occupancy, to wit:
b. Exemptions on the Real Property Tax on equipment, machineries and devices (other than those used for anti-pollution and environment protection) without limit on the value or acquisition price thereof:
2. Exemption from business tax on gross sales/receipts:
4. Deduction from gross sales/receipts of a percentage of the wages paid to workers who are bonafide residents of Lanao del Norte.
Within a period of three (3) years from operation, the enterprise shall be allowed to deduct from its gross sales/receipts, fifty percent (50%) of the wages paid during the preceding calendar year, to personnel/workers who are bonafide residents of Lanao del Norte.
Section 20.   Other Fiscal Incentives Common to Preferred and Non-Preferred Registered Enterprises:
a) Actual expenses on skills training approved by the LNPIIB but not to exceed P 125,000.00 per annum shall be allowed as deductions from taxable gross sales/receipts realized during the preceding calendar within a period of 5 years for preferred and 3 years for non-preferred enterprises:
b) Exemption from payment of the Business Permit Fee for a period of five (5) years for preferred and three (3) years for non-preferred registered enterprises, except regulatory fees, such as health, sanitary, fire inspection fees and the like;
c) Firms operating or, located in Lanao del Norte shall be allowed to deduct from their taxable gross sales/receipts an amount equivalent to one hundred fifty percent (150%) of the actual expenses on dual training systems (DTS) under RA 7686 related to the in-school training of the trainee.
For a period of not more than three (3) years starting from the date of approval of their application registered enterprises shall be entitled to the following reductions/exemptions and business tax from the gross sales or receipts earned or realized during the preceding year:

1st Year          75%

2nd Year         50%

3rd year          25%

4th year          0%

Section 21.   Non-Fiscal Incentives to Registered Enterprises-  Aside from the fiscal incentives granted to those enterprises registered with the Board the Provincial Government also guarantees non-fiscal incentives as follows:
1) One-Stop Action Center for Investments. The Provincial Government of Lanao del Norte shall create the One-Stop Investment Action Center (OSAIC). This body is in charge in project packaging, clearance and permits from National Government Agencies (NGAs) facilitation, database/information center, investor matching and location or site selection to help prospective investors in the province.
a)     Undertakes Pro-active and reactive investment generation efforts;

b)     Provides hands-on services to potential investors;

c)     Act as one-stop approval center;

d)     Assist and arrange in issuing licenses and permits; (ii) Availment of local and national government incentives and; (iii) identified business or joint venture partners, raw materials, supplies, possible business sites and other requirements or prospective investors; and

e)     Provide investment data banking services which will contain among others, general business information, information on economic activities and factory cost and sites characteristics.

2) Manpower Training Programs-  In case a prospective investor needs personnel(s) or Worker(s) to operate its production, the Provincial Government in coordination with the TESDA guarantees capable and available personnel(s) who are efficiently trained for the operation of such investment.