Quezon City plans to amend the Incentives Code

By means of Justine Irish D. Table, Reporter

THE QUEZON CITY GOVERNMENT aims to promote tax incentives for companies that will invest in key priority sectors.

“Quezon City is improving its business environment through strategic policy reforms and infrastructure development targeting medium and large businesses,” said Quezon City Mayor Maria Jose.Fina “Joy” G. Belmonte-Alimurung at the Metro Manila Business Conference Thursday.

“We are in the process of amending the Quezon City Incentives Code to bring it in line with the strategic investment plans of the Board of Investments (BoI). Priority Plan (SIPP),” she added.

The updated code, which is also aligned with the United Nations Sustainable Development Goals and the National Economic and Development Authority’s Ambisyon Natin 2040 targets, “aims to reduce business costs, streamline processes and promote partnerships.”

“It will provide newly constructed buildings with a two-year exemption from business tax, entertainment tax, franchise tax and property tax,” Ms Belmonte-Alimurung said.

“In the meantime, companies participating in our city’s investment priorities plan will receive a three-year exemption from all these taxes,” she added.

Margie S. Mejia, head of the Business Permits and Licensing Department in Quezon City, said the changes in the QC Incentives Code are intended toFlect the current business climate.

“The old Incentives Code was adopted between 10 and 15 years ago, so we need to bring it into line with the times,” Ms Mejia said in a panel discussion.

“The updated code targets medium and large enterprises, hoping to invite them to set up shop in Quezon City,” she added.

Ms. Mejia said businesses in Quezon City could tap into their large population, estimated at about 2.96 million by the Philippine Statistical Authority as of May 1, 2020.

According to the World Population Review, Quezon City’s population could increase to 3.28 million by 2024.

Ernie Delos Reyes, director of BoI Investment Assistance Service and One-Stop Action Center for Strategic Investments, said the Quezon City Local Economic Investment Promotions Office (LEIPO) is already reviewing the changes in the Incentives Code.

“The focus is on strategic investments, but regarding business and property taxes, we have provided inputs on how they can be competitive with other local government units,” Mr. Delos Reyes said in a Viber message.

“We also told them about non-Fiscal incentives such as effectively and efficiently facilitating investments and aligning policies with national policies, especially the latest economic reforms,” he added.

Mr. Delos Reyes said national incentives are already a standard under the Business Recovery and Corporate Tax Incentives Act.

On April 18, the Quezon City LEIPO held a public consultation for the new Quezon City Incentives Code, which aims “to cultivate a favorable business environment, invest inFlow and promote sustainable economic growth.”

Under the Quezon City Economic Development Incentives Code of 2013, qualified medium and large enterprises are entitled to property tax exemption and franchise tax and entertainment tax exemption for four years, among others.

Data from the Ministry of Trade and Industry shows that there are 129,477 business name registrations in the National Capital Region.

Most of these were wholesale and retail trade, food and beverage services, transport and storage, real estate activities and other service activities.