Makati City grants tax relief following July floods

The local government of Makati City has passed an ordinance that will provide tax reliefs to residents and businesses affected by the severe flooding that hit the city last month, due to the continuous rains brought about by the Southwest Monsoon and consecutive tropical storms.

Under City Ordinance No. 2025-A-001, all penalties, surcharges, and interests arising from the late payment of business taxes that fell on July 21, 2025 are waived, provided that the full amount of the principal tax is paid within five working days from effectivity of the ordinance.

The ordinance was approved by Makati City Mayor Nancy Binay on August 11, 2025, and was released to the public on Tuesday, August 19, 2025.

The waiver applies to all taxpayers—individuals or juridical entities—who failed to pay business taxes on July 21, 2025, due to the disturbances experienced in the city in the past month.

For those who have already paid penalties, surcharges, or interests on taxes that were due July 21, 2025, the Makati City government said they may apply the amount paid as a credit against their future local tax liabilities, subject to verification by the Office of the City Treasurer.

Late payments or those made five working days after the effectivity of the ordinance will be subject to the applicable penalties, surcharges, and interests computed from July 21, 2025.

The ordinance also extended the 5% discount for early payment of real property taxes for the third quarter of 2025 until five days after its effectivity. This was originally available only until July 21, 2025.

Those who were unable to avail of the discount but have already paid their third-quarter real property taxes can also apply the equivalent amount as credit.

All benefits automatically apply to qualified taxpayers, with no formal application required.

“We recognize the tremendous hardships our constituents have endured. This comprehensive measure demonstrates our resolve to deliver swift, tangible relief that will help our community rebuild and recover,” Binay said in a separate statement.

The southwest monsoon or Habagat, and tropical cyclones that hit the country late July—Crising (international name: Wipha), Dante (international name: Francisco), and Emong (international name: Co-may)—have logged infrastructure damage of at least P7.355 billion, and a death toll of 34.

A number of roads in Makati, one of the biggest business districts in the Philippines, were flooded due to the rains. — BM, GMA Integrated News