Ordinance No. SP-2219, series of 2013, provides for the Economic Development Incentives Code of Quezon City. Its enactment follows the series of laws and policies clearly establishing the framework of development of the city. Among these are the Revised Comprehensive Zoning Ordinance, which updates land uses and enhances the capacity of the city to optimize the use of its land resources to respond to its future development needs.
These are aligned with the city's Comprehensive Land Use Plan (CLUP), Comprehensive Development Plan (CDP), Tourism Development Plan and Poverty Alleviation Framework.
Investments Bodies. The Code provides for the creation of a Quezon City Economic Development and Investment Board (EDIB), which is tasked to develop policies to enhance the business climate, attract investors and promote existing businesses in the city. The Board shall cause the formulation of 3-year Economic Development and Investment Plan and an annual Investment Priorities Plan (IPP), in consultation with the private sector. Key considerations will be multiplier effect on investments, employment and overall economic activities in the city, including the enterprises' ability to stimulate growth and quality of life upgrading of blighted or depressed areas. The Board is headed by the Mayor, as chairperson and the Vice Mayor, as the vice chair.
Through the mandate provided under the Code, the Quezon City Government shall operationalize its Local Economic Investment Promotions Office (LEIPO), which shall facilitate the drafting of the IPP, promote increased investor interest in the city, and market the city as an attractive business destination. The LEIPO shall also help facilitate business entry into the city, by providing assistance in the compliance of various local and national government requirements.
Coverage. Covered by this Code are investments in medium and large industries, or businesses with capitalization of at least Php 15 million. Both pioneer and non-pioneer enterprises are entitled to incentives, according to qualifications spelled out in this Code. Highly preferred are enterprises which are high-value adding businesses, provide for large employment generation for Quezon City residents, expand the manufacturing capacity of the City, and enable the City to become an innovative manufacturer of alternative energy sources and uses.
Incentives. For qualified enterprises, the Quezon City Government shall commit the following:
For purposes of computing the base of the business tax by the Quezon City Government, a special deduction on the gross income for business taxes for 4 years of operation shall be made in the following amounts:
- Fixed deduction from taxable gross income of Php 5 million, in the case of qualified medium enterprises;
- Fixed deduction from taxable gross income of Pho 10 million in the case of qualified large enterprises;
Exemption from the payment of franchise tax for 4 years of operation, provided there is direct connection to the operations of the business;