Ready to boost your business in Davao City? The Davao City Council has just given the green light to exciting updates to its Investment Code, promising a friendlier environment for Micro, Small, and Medium Enterprises (MSMEs)! This means more opportunities and incentives are on the horizon.
The 21st Davao City Council recently approved amendments to the Davao City Investment Code, marking a significant step towards attracting diverse investments, including those leveraging cutting-edge technologies. Councilor Myrna Dalodo-Ortiz, the driving force behind the ordinance, highlighted that the city is now better equipped to welcome investors with enticing offerings.
A key aspect of the updated code is its comprehensive approach to Priority Investment Areas (PIAs). This includes a broader definition of agribusiness and now encompasses retirement villages, star-rated hotels, theme parks, and convention centers. Furthermore, the PIAs extend to sports tourism and various healthcare services. Technology also gets a boost, with BPO facilities, innovations, and new inventions included. Even eco-industries like electric vehicles are now recognized as PIAs.
But here's where it gets controversial... The new code maintains the core PIAs established in the 1994 Investment Code: agribusiness, tourism, light manufacturing, property development, health, education, technology, eco-industry, infrastructure, and inclusive business activities.
April Dayap, head of the Davao City Investment and Promotion Center (DCIPC), emphasized that the updated code is particularly beneficial for MSMEs.
And this is the part most people miss... The code introduces a graduated exemption for business tax payments, offering a maximum of five years of relief. This translates to a 100% exemption for the first three years, 60% in the fourth year, and 40% in the fifth year. Additionally, MSMEs can enjoy a three-year exemption from real property tax and a five-year exemption from mayor's permit fees. It's important to note that these exemptions do not cover certain fees like garbage and sanitary inspection charges.
Moreover, the code provides a four-year exemption from amusement tax for MSMEs. Tax exemptions on the transfer of real property tax (RPT) apply only to projects subject to amusement tax and included in PIAs.
What do you think? Does this expanded support for MSMEs make Davao City a more attractive place to invest? Are there any aspects of these incentives that you believe could be improved? Share your thoughts in the comments below!
