Fiscal Incentives

In addition to the fiscal incentives provided by laws and by the Local Government Code of 1991, registered enterprise's project shall enjoy exemptions from business tax, real property tax on the share of the City and transfer tax, which shall take effect only during the next calendar year after project completion.

• Preferred activities as provided for under Section 7(a) like infrastructure, creative and knowledge-based industry, alternative energy and waste management projects, the schedule of fiscal incentives which is based on the amount of project investments is as follows:

  Amount of Investments	Percent (%) Business Tax	Percent (%) Real Property Tax & Transfer Tax
  ₱ 500 Million and above	Year 1 - 100% Year 2 - 100% Year 3 - 100% Year 4 - 75% Year 5 - 50%	Year 1 – 100%
  ₱ 300 Million up to less than ₱ 500 Million	Year 1 - 100% Year 2 - 100% Year 3 - 75% Year 4 - 50% Year 5 - 50%	Year 1 - 100%
  ₱ 200 Million up to less than ₱ 300 Millio	Year 1 - 100% Year 2 - 75% Year 3 - 50% Year 4 - 25% Year 5 - 10%	Year 1 - 100%

• Preferred activities as provided for under Section 7(a) like tourism, agri-business or agro- industries with One Hundred Million (₱100,000,000.00) and above project investment shall enjoy 100% business tax exemption for the first five (5) years of operation plus one (1) year Real Property Tax exemption on the share of City including Transfer Tax.

• Light Industry projects with the investment of Three Million Pesos and below shall enjoy 100% business tax exemption for five years plus one (1) year Real Property Tax exemption on the share of the City including Transfer Tax.

• Tech Industry and Alternative Energy projects with the investment of not lower than Two Billion Pesos shall enjoy 100% business tax exemption for five years plus one (1) year Real Property Tax exemption on the share of the City including Transfer Tax.

• Export Activity projects with the investment of Three Million Pesos and below shall enjoy 100% business tax exemption for five years plus one (1) year Real Property Tax exemption on the share of the City including Transfer Tax

Only the money or fund infused in the modernization and rehabilitation shall be considered for incentives for modernization and rehabilitation projects.

The Code shall also give “Green Incentives” or exemption from Local Taxes Fees and Charges equivalent to the Payments for Environmental Services (PES) to enterprises engaged in ecosystem services for environmental protection and climate change adaptation in poor marginalized communities. PES contributions may be in the form of direct technical and financial assistance on sustainable livelihood activities and green technologies that will reduce the poor’s vulnerability to climate change, financing protection or rehabilitation of degraded ecosystems and other environmental activities formally agreed upon with concerned communities and the City Government of Tuguegarao. Payments for Environmental Services (PES) incentive, however, shall be availed only once in every three years.