Mati City Unveils Tax Incentive Program to Drive Economic Development
In a strategic move to enhance economic vitality and attract new ventures, the City Government of Mati in Davao Oriental has officially launched a comprehensive tax incentive program. This initiative is specifically designed to encourage investors and entrepreneurs to establish and expand their businesses within the city, fostering a more robust local economy.
Details of the Local Business Tax Incentives Program
Authorized under City Ordinance No. 394, Series of 2019, the Local Business Tax Incentives Program provides structured tax exemptions based on the scale of the enterprise, commencing from the start of commercial operations. The program aims to alleviate financial burdens during the critical early years of business development.
For small-scale enterprises, the program offers a full 100 percent exemption from local business taxes for the initial three years of operation. Following this period, standard tax rates will be applied as per regular regulations.
Medium-scale enterprises benefit from a similar 100 percent tax exemption during their first three years. In the fourth year, they receive a reduced 25 percent exemption before transitioning to regular tax obligations.
Large-scale enterprises are granted the most extensive incentives, with a 100 percent tax exemption spanning the first four years. This is followed by a 25 percent exemption in the fifth year, after which normal tax rates take effect.
Scope and Objectives of the Incentive Program
The tax incentives primarily cover real property taxes, which include levies on land, buildings, and equipment. It is important to note that exemptions do not apply to the barangay share or the Special Education Fund (SEF) portion, ensuring that essential community services remain funded.
In an official press release, the city government emphasized that this program is a cornerstone of the People’s Administration’s strategy to stimulate investment, generate employment opportunities, and fortify the local economic landscape. By supporting startups and established businesses alike, the initiative seeks to create a thriving business environment that contributes positively to Mati’s overall growth.
Implementation and Application Process
The Local Economic Development and Investment Promotion Office (Ledipo) of the Mati City Government is responsible for overseeing the program. Prospective investors and entrepreneurs are encouraged to reach out directly to Ledipo for detailed information on eligibility criteria, project qualifications, and the necessary application procedures. This direct coordination ensures that interested parties can navigate the process efficiently and take full advantage of the available incentives.
