The city government of Mati in Davao Oriental has introduced a strategic new program designed to draw investors and bolster its local economy. This move aims to establish Mati as a prime investment destination in the Eastern Mindanao region.
Details of the Tiered Tax Incentive Scheme
Formally launched on January 13, 2026, the initiative is grounded in City Ordinance No. 394, Series of 2019. The Local Economic Development and Investment Promotion Office (Ledipo) is the lead agency implementing the program. The core of the strategy is a multi-level tax exemption plan for new commercial projects, which begins from the start of their operations.
The incentives are carefully structured based on the scale of the enterprise:
- Small enterprises are granted a 100% exemption from local business tax for the first three years. No exemptions apply in the fourth and fifth years.
- Medium enterprises also receive a full tax break for three years. This is followed by a reduced 25% exemption in the fourth year, with no exemption in the fifth year.
- Large enterprises qualify for the most extended support, with a 100% tax exemption spanning the first four years, and a 25% exemption in the fifth year.
Strategic Goals and Expected Impact
City officials explained that this tiered approach is deliberate. It ensures that businesses of varying sizes and growth stages receive appropriate support. The program is engineered not just to attract new players but to encourage existing ones to reinvest and expand their operations locally.
The primary objectives are multifaceted: to lower entry barriers for startups, attract capital-intensive projects, and promote economic diversification. Key sectors targeted for growth include tourism, agribusiness, manufacturing, and services.
While the tax relief is temporary, the People's Administration of Mati anticipates long-term benefits. The policy is projected to empower local entrepreneurs, enabling them to scale up and compete in wider markets. The ultimate returns are seen in the form of job creation, technology transfer, and a significant boost in local consumer activity.
How to Access the Incentives
For investors and entrepreneurs interested in the program, Ledipo serves as the main point of contact. The office is tasked with assisting potential investors through the entire process. This includes project evaluation, handling necessary documentation, and coordinating with other local departments to ensure smooth business registration and compliance.
Interested parties are advised to coordinate directly with Ledipo to get full details on qualification criteria, program coverage, and specific application requirements.
