Department of Finance Secretary Frederick Go said he is supporting a Bureau of Internal Revenue (BIR) initiative to simplify tax exemption processes for socialized and economic housing developers to speed up the production of low-cost homes.
The move follows a directive from President Ferdinand Marcos Jr. to improve bureaucratic efficiency and the ease of doing business in the country.
BIR officials intend to streamline fiscal and tax-related aspects of housing development to encourage more private sector investment in socialized projects under a proposed joint memorandum circular.
“I fully support the BIR in this effort, as it is my commitment to enhance the ease of doing business for our partners in development. This way, we can provide more affordable homes for low-income Filipino families,” Go said.
The proposed agreement involving the Department of Human Settlements and Urban Development (DHSUD) and other government agencies introduces the One-Stop Shop Processing Center (eHOPC).
The digital platform will generate required documents to enable more efficient processing of applications.
To qualify for a certificate of tax exemption, applicants should submit a socialized housing certification issued by the DHSUD. The BIR Deputy Commissioner for the Legal Group will be authorized to sign the rulings or certificates for the tax incentives.
While specific project costs were not detailed, the government aims to address a housing backlog that often involves units priced below P3 million for economic housing and significantly less for socialized units.
Officials expect the streamlined process to reduce the 12-percent value-added tax burden and other levies typically associated with large-scale construction.
