The Makati City government is giving a tax relief to projects in the city that are listed under the Japan-Official Development Assistance (Japan-ODA).
Under the Japan-ODA Incentive Ordinance which took effect on Feb 18, projects entered into by the Japanese and Philippine governments under the Japan-ODA will be given a “zero-percent tax rate.”
City Ordinance No. 2013-010 allows for local tax exemptions of the projects, provided there is confirmation from the Japanese ambassador that they are funded under the Japan-ODA and there is proof that the projects’ previous tax obligations before the ordinance was passed had been paid.
“I believe it will facilitate the implementation of planned projects that would boost economic growth and community development in Makati,” Makati Mayor Jejomar Erwin Binay Jr. said in a statement.
The local legislation is in accordance with a Department of Interior and Local Government (DILG) circular mandating special local tax exemptions for Japan-ODA-funded projects to foster friendship between the Philippines and Japan. Jaymee T. Gamil