More qualified business owners are now allowed to apply for incentives with the amendment of Section 39 of the Investment Code.
Davao City Investment and Promotion Center Officer-in-Charge April Marie C, Dayap, in an interview with the City Information Office on September 13, 2022 said that the amendment suspends the requirement that a business should be “new” to qualify for incentives.
Last August, the 20th Davao City Council passed a resolution suspending the “New Business Only” requirement for investment incentives application under the Amended Davao City Investment Incentive Code of 1994, allowing businesses that acquired their business permits for more than six months to avail of local tax incentives.
Section 39 of the Davao City Investment Incentive Code provides that “in order for enterprise to avail of the above incentives, the concerned project/s in such preferred investment areas or activities should apply for incentives with the Davao City Investment Promotion Center (DCIPC) within six (6) months from the date of the issuance of their business permit.”
Dayap said that this amendment will allow businesses from 2019, that are under the Priority Investment Areas of Davao City, to apply for local tax incentives offered by the city.
The 10 preferred areas of investment in Davao City are agribusiness, technology, light manufacturing, tourism, property development, health, eco-industry, inclusive business activities, education, and infrastructure.
“The amendment is very helpful indeed to all newly registered businesses from 2019 to 2022, especially now that businesses are trying to bounce back from the effects of the pandemic. Precisely the reason that this measure was enacted by the City, to serve as an economic recovery program to help ailing businesses,” Dayap said.
She added that once the qualified applicant has completed all the requirements, DCIPC will endorse it to the Davao City Investment Incentive Board for approval.
“If the Board approves their application, they will enjoy the following local tax incentives: Business Tax, Real Property Tax; and Exemption to Mayor’s Permit Fees and licenses except building permit fees,” she said.
From 1995 up to the present, DCIPC has 244 grantees already under the local tax incentives and it currently has pending applications – with applicants completing their documentary requirements.
“We are strongly encouraging our all our investors who are qualified under this measure, to apply for the local tax incentives offered by the city,” she said, adding that they are expecting to add more grantees for the local tax incentives this year.
Dayap said that DCIPC reaffirms its commitment to “continually coming up with more measures that will make it more cost-effective and easier for the investing public to set up their businesses in the city.”
Investment incentive applicants can submit their application to the DCIPC, located at the Davao City Tourism and Investment Promotions Building on Palma Gil Street, or through the DCIPC website, https://invest.davaocity.gov.ph/. They may also contact 285-5750 local 302-306 or via email at email@example.com