Frequently Asked Questions
What is the Investment Incentives Code?
Ordinance 97-114, otherwise known as the Naga City Incentives Code, grants incentives to businesses to encourage them to establish new enterprises in preferred investments activities or expand the operations of existing ones. The Code has the following objectives:
- generate employment for the constituents of Naga City and the Metro Naga area;
- increase the value-added of local products;
- develops the city’s tourism potential;
- promote balance growth;
- make the business sector a partner in enhancing the environment; and
- encourage modernization and promote global competitiveness.
Click here to download the code (73kb|pdf) and its implementing rules and regulations.
What incentives can enterprises avail of?
Registered enterprises may avail of both fiscal and non-fiscal incentives. Fiscal incentives refer to exemption from payment of certain local taxes, fees and charges. The Investment Promotion Action Center (IPAC) and other city government departments provide investors with services, which are meant to facilitate enterprise’s operationalization and entry into the market. These are referred to as non-fiscal incentives. Click here for more details.
How does an enterprise apply for incentives?
Any enterprise intending to avail of incentives must register with the Naga City Investment Board (NCIB). Application forms and other documentary requirements are available at the Investment Promotion Action Center, the NCIB’s implementing arm. Click here to download the forms you need.
How long is the processing time?
The NCIB will act on applications within fifteen (15) working days. Applications filed shall be considered automatically approved if not acted upon within this period.
What if a firm does not have a new investment or will expand, can it still avail of incentives?
YES. The city looks to the business community as a partner in enhancing the environment. The Code, in fact, offers green incentives. Any existing enterprise which plants trees at specified locations is entitled to deduct a certain amount from its gross receipts for each growing tree. The deductions, however, must not exceed 30% of the firm’s gross receipts. Any excess may be charged against succeeding tax years for a maximum of three (3) years. The same is true for landscaping; and repainting if an enterprise’s building.
If you have other questions in mind, please don’t hesitate to email us.