DOF supports tax break reforms to boost low-cost housing

Finance Secretary Frederick D. Go has thrown his support behind efforts by the Bureau of Internal Revenue (BIR) to simplify the tax exemption process for socialized and economic housing developments, aiming to speed up the delivery of affordable homes to low-income Filipino families.

The initiative aligns with President Ferdinand R. Marcos Jr.’s directive to improve bureaucratic efficiency and enhance the ease of doing business in the country.

“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 in a statement.

The Department of Finance (DOF) said the move is part of a forthcoming Joint Memorandum Circular (JMC) that involves the Department of Human Settlements and Urban Development (DHSUD) and other government agencies. The circular seeks to improve the processing and issuance of tax-related incentives that encourage more developers to invest in low-cost housing.

As part of the JMC, the BIR will help ensure that fiscal and tax processes related to housing development are more efficient and transparent.

A key feature of the reform is the introduction of the One-Stop Shop Processing Center, known as the eHOPC platform. This digital platform is designed to streamline document generation and reduce the time needed for developers to secure tax exemptions and permits.

To obtain a Certificate of Tax Exemption (CTE), developers will be required to present a Socialized Housing Certification issued by the DHSUD.

The circular also authorizes the BIR’s Deputy Commissioner for the Legal Group to sign rulings and CTEs related to tax incentives, eliminating the need for multiple layers of approval and speeding up project implementation timelines.