INVESTORS coming to Davao City will now enjoy more incentives as the 19th Davao City Council passed on third and final reading amendments to the Davao City Investment Incentive Code.
Councilor Nilo Abellera Sr., who heads the committee on trade, commerce and industry, said the amended investment code would further attract new businesses in the city.
Under the amended ordinance, new provisions were added expanding the fiscal incentives investors can avail of.
Once implemented, investors under any of the Preferred Investment Areas (PIA) with a minimum capital of P3 million can apply for business tax exemption for three years and real property tax exemption for two years.
Section 31 of the ordinance states that investors can apply exemption from basic real property tax of real properties used in the registered business, excluding barangay share and Sepcial Education Fun (SEF) for a maximum period of two years or from the start of commercial operation of the enterprise or project.
The section also states that the city can offer tax credits for regulatory fees and permits paid for a maximum period of three years, and tax deductions for certain costs, as determined in the implementing rules and regulations, incurred by the registered enterprise that have a direct positive impact to the activities listed in the PIA and/or of use of indigenous raw materials.
Meanwhile, Section 32 offers tax incentives to expanding and modernizing projects by giving exemption from business tax increments (where assessment increments are solely brought about by the expansion or diversification) for a maximum period of three years starting from January of the year succeeding the actual or project start of commercial operations (SCO), whichever is earlier, of the expansion or modernization project.
Section 32 also provides exemption from basic real property tax of real properties used in the registered business, excluding barangay share and SEF for a maximum period of two years from the effectivity or accrual of the real property tax on the new tax declaration or assessment issued by the City Assessor's Office.
Meanwhile, Section 33 gives fiscal incentives to projects located in preferred districts, as provided for in the list of PIA may be granted the following incentives, as determined by the board, including exemption from business tax for a maximum period of five years starting from the actual SCO.
Also, Section 34 will give additional fiscal incentives to registered enterprises employing indigenous peoples (IPs) and persons with disability (PWD), while Section 35 states that micro, small and medium enterprises doing activities under PIA will also be granted additional incentives.
"A registered enterprise shall be allowed deduction from its gross income for the wages paid to IPs and PWDs," the ordinance stated.
Davao City Investment and Promotion Center head April Marie Dayap said in a previous interview that along with the amendment of the code, they want now to personally facilitate their applications to make it more convenient especially for foreign investors and even those who are from outside the city.