Quezon City Mayor Joy Belmonte has approved an ordinance updating the incentives for medium and large enterprises including tax holidays as part of ongoing efforts to further bolster the city’s economic growth and development.
The mayor signed Ordinance No. SP-3296 of 2024 amending Ordinance No. SP-2219 of 2013 to offer “better and more customized fiscal incentive packages” to medium to large businesses.
“We have implemented necessary changes to the incentives we provide to medium and large enterprises as part of our ongoing efforts to attract more businesses and investors to channel their resources, expand or relocate their activities in the city to strengthen local economic progress,” Belmonte emphasized.
Under the measure, new medium and large enterprises worth P15 million or above, excluding land value, may apply for a two-year exemption from business tax, amusement tax, franchise tax and real-property tax on registered land and new buildings constructed within two years from registration.
An additional year of exemption shall be given if a newly registered enterprise is engaged in a business listed in the city’s latest Investment Priorities Plan, such as circular and sustainable infrastructure, creative economy and industry, inclusive economy, and innovation and development.
The ordinance gives leeway to businesses eyeing to expand or establish a new branch in the city to benefit from a two-year exemption from business tax, amusement tax, franchise tax and real-estate tax on registered lands and new buildings constructed within two years of the registration of the office or additional branch.
On the other hand, businesses relocating their principal offices to Quezon City may receive a 10-year tax exemption from situs tax for all their gross sales outside of the locality.
The situs of income taxation from fee payments may be established if the income-generating activity is directly associated with the facilities located within the Philippines, and engaging in a particular state-regulated business activity.
Ordinance No. SP-2219 provides incentives to loyal businesses that have maintained their principal office in Quezon City for 15 years, giving them a 10-percent discount on their situs tax for all gross sales outside of Quezon City for one year.
Those seeking to avail of such incentives must register with the Local Economic Investment Promotions Office subject to the approval of the QC-Economic Development and Investments Board.
