In a bold move to attract investment and accelerate local job creation, the Iloilo City government has approved a 100% real property tax (RPT) exemption for developers building facilities exclusively for business process outsourcing (BPO) operations.
Authored by Councilor Miguel Treñas and passed by the City Council, the ordinance seeks to position Iloilo City as a top-tier destination for BPO expansion while easing the time-consuming Philippine Economic Zone Authority (PEZA) accreditation process, one of the significant hurdles of investors.
Under the new measure, developers are eligible for full RPT exemption during the duration of their PEZA application, up to a maximum of five years or until the accreditation is granted, whichever comes first.
“The BPO industry is a vital contributor to the economic growth of Iloilo City,” Treñas said. “To sustain and further attract BPO investments, it is imperative to create a favorable business environment by offering incentives that encourage the construction of dedicated BPO facilities.”
Strengthening Iloilo’s competitive edge
The initiative is part of Iloilo’s broader strategy to attract global outsourcing firms and reinforce its position as a rising BPO hub outside Metro Manila. By lowering the upfront cost of BPO infrastructure development, city officials hope to draw local and international investors seeking cost-effective expansion in the Philippines.
Iloilo’s growing talent pool, improving business infrastructure, and commitment to investor-friendly policies make it an attractive alternative to more saturated markets such as Manila and Cebu. The ordinance also aligns with the city’s real estate boom, supporting the construction of purpose-built facilities suited for the evolving needs of digital and hybrid workforces.
Developer compliance and oversight
To qualify for the tax incentive, developers must present official PEZA application documents, including filing receipts, and prove that the project will be used exclusively for BPO operations. The City Assessor’s and Treasurer’s Offices will oversee the verification and compliance process.
The ordinance follows Iloilo’s recent property tax rate adjustment, the first in 18 years. In response to public concerns, the city implemented a phased payment scheme that allows taxpayers to pay only 60% of assessed RPT until 2026, demonstrating its effort to balance fiscal reforms with investment stimulation.
BPO industry’s role in regional growth
The BPO industry continues to be a cornerstone of the Philippine economy, employing millions and contributing significantly to GDP. In regional centers such as Iloilo, the sector has created new economic zones, boosted demand for commercial developments, and provided high-value employment opportunities for youth and professionals.
By decentralizing BPO growth from Metro Manila, cities such as Iloilo help promote inclusive national development. With this new incentive, Iloilo strengthens its position as a viable, vibrant, and future-ready outsourcing destination.
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Ladiao, Ma. Theresa. (2025, April 4). BOOSTING JOBS, ECONOMIC GROWTH: Miguel Treñas Champions RPT Incentives, Paves Way for BPO Expansion in Iloilo City.” Panay News. Retrieved from https://www.panaynews.net/boosting-jobs-economic-growth-miguel-trenas-champions-rpt-incentives-paves-way-for-bpo-expansion-in-iloilo-city/
