Iloilo City Grants RPT Exemption to BPO Buildings

By Rjay Zuriaga Castor

To attract more Business Process Outsourcing (BPO) investments, the Iloilo City Council has approved an ordinance granting a 100% exemption from real property tax (RPT) to BPO buildings under Philippine Economic Zone Authority (PEZA) accreditation review.

The ordinance, authored by Councilor Miguel Treñas, was passed during the council’s regular session on Wednesday, April 2.

The tax exemption applies only during the pendency of a developer’s PEZA application and is valid for a maximum of five years or until PEZA registration is granted, whichever comes first.

“The BPO industry is a vital contributor to the economic growth of Iloilo City, providing substantial employment opportunities and driving urban development,” the ordinance stated.

To qualify for the exemption, developers must submit proof of their PEZA accreditation application, such as acknowledgment receipts or filing confirmation, and comply with documentation requirements set by the City Assessor’s and City Treasurer’s Offices.

The building must also be used exclusively for BPO operations.

Treñas said the measure aims to address the lengthy PEZA accreditation process by offering financial relief and encouraging the prompt establishment of BPO facilities.

“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,” he added.

In 2024, Iloilo City implemented its first real property tax adjustment in 18 years to align with the city’s economic growth and rising real estate values.

The reassessment resulted in significant increases in property valuations, which led to higher tax obligations for some property owners and raised public concern.

In response, the city government approved a measure allowing landowners to pay only 60% of the assessed RPT from 2024 to 2026.

The full rate is scheduled to resume in 2027.