Business process outsourcing (BPO) developers that want to construct buildings in Iloilo City may soon avail of real property tax (RPT) incentives.
This, after the Sangguniang Panlungsod passed on Wednesday, April 2, the BPO Real Property Tax Incentive Ordinance of Iloilo City.
The new measure, authored by Councilor Miguel Treñas, grants a 100 percent exemption from the payment of RPT during the period of pendency of the developer’s application with the Philippine Economic Zone Authority (PEZA).
“Granting [an RPT] incentive during the pendency of PEZA accreditation would provide much-needed financial relief to developers and encourage the early establishment of BPO operations in the city,” the ordinance stated.
“It is in the best interest of the Iloilo City Government to support the growth of the BPO industry by promoting an investor-friendly environment while ensuring the balanced development of the local economy,” it further stated.
Under the ordinance, the building “must be dedicated and used exclusively for BPO purposes, including the operation of call centers, IT services, back-office operations, and other similar business activities under the BPO category.”
Developers need to submit “proof of application for PEZA accreditation and the documentation evidencing the pendency of such application.”
The ordinance will take effect 15 days after its publication in a newspaper of general circulation or after posting in at least two conspicuous places in the city.IMT
