Investors in Davao City are expected to enjoy bigger incentives after amendments to the city’s Investment Incentive Code were approved.
The Davao City Council has approved on third and final reading the amended ordinance, which expands the incentives offered to qualified investors.
Under the amended code, priority investment areas are now specified, including agribusiness, tourism, light manufacturing, property development, health, education, technology, eco-industry, infrastructure, and inclusive business activities.
“Mas gipalaluman pa nato ug gihimo natong comprehensive ang coverage para sa mga businesses or mga investments nga pwede nato i-cover o mahatagan nato og incentive dinhi sa Davao City in the hope that we will be able to attract more investors,” Davao City Investment Promotion Center Head, April Marie Dayap, said.
The amended code also extends the length of the following exemptions:
- Business tax exemption - five years (from three years)
- Real property tax exemption - three years (from two years)
- Mayor’s permit fee - up to five years
New incentives were also introduced such as a four-year exemption from amusement tax starting from the beginning of commercial operations and land tax exemption for commercial and fruit-bearing tree plantations for up to 10 years from the date of application approval.
Incentives were also offered for micro, small and medium enterprises (MSMEs)
“Katong under sa mga MSMEs, ang atoang mga graduated exemption from payment of business tax for a maximum of five years, dati man gud murag 3 years lang siya. So, karon gipa-longer pa nato ang coverage. We also have katong 3 years nga tax exemption as well for real property tax and business tax,” Dayap added.
The Davao City Investment Promotion Center expects that the expanded incentives will attract more businesses that would led to more employment opportunities and high production capacity.
