In a bid to attract investments and stimulate economic growth in Mati City, Davao Oriental, the city government is offering tax incentives to investors and entrepreneurs who plan to establish new businesses in the city.
Pursuant to City Ordinance No. 394, Series of 2019, the Local Business Tax Incentives Program grants tax exemptions based on the size of the enterprise, starting from the commencement of commercial operations.
Under the program, small-scale enterprises are entitled to a 100 percent local business tax exemption during their first, second, and third years of operation. Thereafter, regular tax rates shall apply.
Similarly, medium-scale enterprises can enjoy a 100 percent local business tax exemption for the first three years. In the fourth year of operation, a 25 percent tax exemption is granted, after which regular tax rates shall be imposed.
Meanwhile, large-scale enterprises receive the most extended incentives, with a 100 percent local business tax exemption for the first four years, followed by a 25 percent tax exemption in the fifth year.
The tax incentive program primarily covers the real property tax, including land, buildings, and equipment, excluding the barangay share and the Special Education Fund (SEF) portion.
In a press release, the city government said the program is designed to support small, medium, and large enterprises, particularly startups, by helping them thrive while also positively impacting the local economy.
“This initiative forms part of the People’s Administration’s efforts to attract investments, create jobs, and strengthen the local economy of Mati,” the city government stated.
The program is being handled by the Local Economic Development and Investment Promotion Office (Ledipo) of the city government. Interested investors may coordinate directly with Ledipo for more information on project qualifications and application requirements. (ASO/PIA Davao Oriental with reports and photos from Mati CIO)