Cost of Doing Business

Daily Minimum Wage Rates

SECTOR

WAGE
[PhP]

COLA
[Php]

Agriculture

Plantation

Non-Plantation

Non-Agriculture

Retail-Service

Employing 10 worker Or less

Employing more than 10 workers

178

158

188

158

188

Real State Rates

CLASSIFICATION	PURCHASE / SALE [Php]	LEASE / RENTAL [Php / mo.]
LOTS > Highly Commercial > Commercial / Residential	700/sq.m. – 2,500/sq.m. 96/sq.m. – 200/sq.m.	130/sq.m. – 360/sq.m. 50/sq.m. – 100/sq.m.
BUILDINGS > Highly Commercial > Commercials / Residential		100/sq.m. – 280/sq.m. 30/sq.m. – 80/sq.m.
WAREHOUSE > Per square Meter > Whole Building		30.00 – 45.00 per sq.m. 106.50 per sq.m. + VAT 6,000 – 19,000
STALLS / SPACES > Private > Government		4,000.00-6,000.00 10,000.00-15,000.00 3.00 per sq.m. / day 5.00 per sq.m. / day

Note:

Highly Commercial – located along concrete roads; where the trading, social or educational activities are considerably high; where concrete or high grade commercial or business buildings are situated; and where vehicular and pedestrian traffic flow are considerably busy.

Commercial - located along concrete or graveled roads; where trading social or educational activities are significantly low but predominant, where mixed commercial and residential buildings are situated; and where vehicular and pedestrian traffic flow are regular.

Real Property Tax

Basic Tax : Residential - 1.0% of assessed value
Commercial / Industry - 1.75% of assessed value
Special Education Fund: - 1.0% of assessed value

KIND	Classes and Base Unit Market Values per Sq.M.
	1st	2nd	3rd	4th	5th
RESIDENTIAL COMMERCIAL INDUSTRIAL	420.00 3,240.00 350.00	310.00 2,450.00 300.00	240.00 1,850.00 240.00	180.00 1,400.00 180.00	140.00 1,040.00 130.00

KIND	Classes and Base Unit Market Values per Sq.M.
	6th	7th	8th	9th	10th
RESIDENTIAL COMMERCIAL INDUSTRIAL	110.00 780.00 80.00	90.00 600.00 50.00	70.00 450.00 30.00	60.00 330.00	50.00 260.00

CLASS	ASSESSMENT LEVELS
Residential Lands	20%
Agricultural Lands	40%
Commercial Lands	50%
Industrial Lands	50%
Mineral Lands	50%
Timber Lands	20%
Special Classes: Cultural Scientific Hospital Local Water District, Government – owned or controlled corporations engaged in supply and distribution of water and / or generation and transmission of electric power	15% 15% 15% 10%

Power, Water and Fuel Rates

AGUSAN DEL NORTE ELECTRIC COOPERATIVE, INC.
Km. 2 J.C. Aquino Avenue, Butuan City Tel Nos. 342-1790 / 341-5139 / 342-1768 145 [Bayantel Hotline] 163 [Cruztelco Hotline]
TYPE OF CONSUMERS	JAN. 2003 BASIC RATE	DEC. 2002 PPA	WAC	POWER ACT REDUCTION
Residential Commercial Industrial Street Light Public Building Irrigation	P 2.3681 2.3981 2.3981 2.3281 2.3681 2.2681	P 1.0191 1.0191 1.0191 1.0191 1.0191 1.0191	P 0.0116 0.0116 0.0116 0.0116 0.0116 0.0116	[P 0.3000] - - - - -

BUTUAN CITY WATER DISTRICT
J. Rosales Street, Butuan City Tel. Nos. 341-6373 –75 : 143 [Bayantel Hotline]
CLASSIFICATION	SIZE	SERVICECHARGE	COMMODITY CHARGE
		0-10 (Minimum)	11-20	21-30	31-40	41-50
Residential/	1/2"	105.00	19.30	21.00	24.65	28.00
Government	3/4"	168.00	19.30	21.00	24.65	28.00
	1"	336.00	19.30	21.00	24.65	28.00
	1 1/2"	840.00	19.30	21.00	24.65	28.00
	2"	2,100.00	19.30	21.00	24.65	28.00

Commercial I	1/2"	183.75	33.80	36.75	43.15
	3/4"	294.00	33.80	36.75	43.15

Commercial II/	1/2"	210.00	38.60	42.00	49.30	56.00
Industrial	3/4"	336.00	38.60	42.00	49.30	56.00
	1"	672.00	38.60	42.00	49.30	56.00
	1 1/2"	1,680.00	38.60	42.00	49.30	56.00
	2"	4,200.00	38.60	42.00	49.30	56.00

Tax On Businesses

Imposition of Tax – There is hereby imposed and levied a tax on the following businesses:

On manufacturers, assemblers, repackes, processors, brewers, distillers, rectifiers, and compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature

With gross sales or receipts for the preceding
Calendar year in the amount of:

Amount of Tax
Per Annum

Less than P 10,000.00
10,000 or more but less than P           15,000
15,000 or more but less than P           20,000
20,000 or more but less than P           30,000
30,000 or more but less than P           40,000
40,000 or more but less than P           50,000
50,000 or more but less than P           75,000
75,000 or more but less than P         100,000
100,000 or more but less than P         150,000
150,000 or more but less than P         200,000
200,000 or more but less than P         300,000
300,000 or more but less than P         500,000
500,000 or more but less than P         750,000
750,000 or more but less than P      1,000,000
1,000,000 or more but less than P      2,000,000
2,000,000 or more but less than P      3,000,000
3,000,000 or more but less than P      4,000,000
4,000,000 or more but less than P      5,000,000
5,000,000 or more but less than P      6,500,000
6,500.00 or more

247.00
330.00
493.00
660.00
990.00
1,237.00
1,980.00
2,475.00
3,300.00
4,125.00
5,775.00
8,250.00
12,000.00
15,000.00
20,625.00
24,750.00
29,700.00
34,650.00
36,562.00
56.25% of 1%

Real Estate Lessor, eatery / carenderia / restaurant /
Rice mill / lechon dealer / banks / lending / pawnshop and other financial institution / insurance

75% of 1%
of the
Gross Sales

On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature in accordance with the following schedules

With gross sales or receipts for the
Preceding calendar year in the amount of [Php]:

Amount of Tax
Per Annum [Php]

280.00
330.00
412.00
495.00
660.00
990.00
1,485.00
1,980.00
2,805.00
3,630.00
4,950.00
6,600.00
9,900.00
13,200.00
15,000.00
75% of 1%

On retailers in accordance with the following schedule:

With the gross sales or receipts For preceding calendar year of:	Amount of Tax Per Annum
P 400.000.00 or less More than P 400,000.00	3.0% 1.5%

On contractors and other independent contractors, in accordance with the following schedule:

With gross sales or receipts for the
Preceding calendar year in the amount of [Php]:

Amount of Tax
Per Annum [Php]

Less than P 10,000.00
10,000 or more but less than P           15,000
15,000 or more but less than P           20,000
20,000 or more but less than P           30,000
30,000 or more but less than P           40,000
40,000 or more but less than P           50,000
50,000 or more but less than P           75,000
75,000 or more but less than P         100,000
100,000 or more but less than P         150,000
150,000 or more but less than P         200,000
200,000 or more but less than P         250,000
250.000 or more but less than P         300,000
300,000 or more but less than P         400,000
400,000 or more but less than P         500,000
500,000 or more but less than P         750,000
750,000 or more but less than P      1,000,000
1,000,000 or more but less than P      2,000,000
2,000,000 or more

92.40
156.75
247.50
412.50
577.50
825.00
1,320.00
1,980.00
2,970.00
3,860.00
5,445.00
6,930.00
9,240.00
12,375.00
13,875.00
15,375.00
17,250.00
Seventy-five
Percent [75%]
Of one percent [1%]

In case of a newly started business, the tax shall be at the rate of three-fortieth [3/4] of one percent [1%] of the capital investment but not less than P 92.40.

CONTRACTORS AND OTHER INDEPENDENT
CONTRACTOR SHALL INCLUDE THE FOLLOWING:

General Engineering, general building and especially contractors, proprietors or operators of mine drilling apparatus; proprietors or operators of dockyards; person engaged in the installation of water system, and gas or electrical light, heat, or power proprietors or operators of smelting plants; engraving, plating and plastic lamination.

Steps in Processing Incentives

Tax Holiday Registration Requirements

1.1 Formal written application of the proponent
1.2 Mayor’s Permit
1.3 Registration – Securities & Exchange Commission (SEC) for Corporations; Cooperative Development Authority (CDA) for Cooperatives
1.4 Updated General Information Sheet (GIS) for Corporate Entity
1.5 Copy of the Project Description
1.6 Cost Estimates of the Structure/Building duly signed by a Licensed Civil Engineer/Architect.
1.7 Audited Financial Statement for Calendar Year Ended
1.8 Plant/Structure/Site Pictorials
1.9 DTI Registration
2.0 Environmental Compliance Certificate (ECC) / Certificate of Non- Coverage (CNC)
2.1 Board Resolution authorizing the Corporate Secretary to transact business with the City Investment Board (if corporation)
2.2 Lease Contract (if renting)

Cost of Doing Business

SERVICECHARGE