In a bid to attract more investors, the 21st Davao City Council has approved on third and final reading amendments to the city’s Investment Code by expanding tax holidays and incentives for micro, small, and medium enterprises (MSMEs) and priority industries.
The amended Investment Code broadens the scope of Priority Investment Areas (PIA), allowing qualified businesses to avail of longer and more comprehensive incentives.
Councilor Myrna Dalodo-Ortiz, the ordinance’s proponent, said the revisions update the 31-year-old Investment Code to make Davao City more competitive and responsive to changing business and technology trends.
Under the revised code, PIA now covers a wider range of sectors, including agri-business, tourism, health, education, technology, eco-industries, infrastructure, and inclusive business activities.
Newly included or clarified areas also cover retirement villages, star-rated hotels, theme parks, convention centers, sports tourism, hospital services, BPO facilities, innovations, and electric vehicle-related industries.
Davao City Investment and Promotion Center (DCIPC) Head April Dayap said the amendments were designed to make the city more appealing to investors.
Dayap said MSMEs will benefit from expanded incentives, including a graduated business tax exemption of up to five years, 100 percent for the first three years, 60 percent in the fourth year, and 40 percent in the fifth year.
“Ang amendments nato for Davao City Investment Code mas gipalaloman ug gihimo nating comprehensive ang coverage para sa businesses and investment na puwede nato mahatagan ug incentives dinhi sa Davao City in the hope that we will be able to attract more investors in the city of Davao,” Dayap said in an interview.
MSMEs under the PIA may enjoy a graduated business tax exemption of up to five years 100 percent for the first three years, 60 percent in the fourth year, and 40 percent in the fifth year.
The code also extends real property tax exemptions to three years, mayor’s permit fee exemptions to five years, and grants a four-year exemption from amusement tax for qualified MSMEs.
