BIR eases tax exemption rules for socialized housing developers

The Bureau of Internal Revenue has eased requirements for developers of socialized and economic housing to secure tax exemptions, and now allows them to secure the benefit by submitting a certification from housing regulators in a bid to expedite the rollout of low-cost homes.

Under Revenue Memorandum 048-2025, applicants will only need to attach the required Socialized Housing Certification issued by the Housing and Land Use Regulatory Board (HLURB) to a letter request addressed to the BIR to avail of the tax exemption.

“Within this framework, the BIR’s role is crucial in ensuring efficiency in the fiscal and tax-related aspects of housing development,” the memorandum read.

“Specifically, the BIR is mandated to streamline the application process for tax exemptions or rulings involving socialized and economic housing projects,” it added.

The memorandum — signed by BIR Commissioner Charlito Martin Mendoza and takes effect immediately — provides that any previous issuances that are inconsistent with the order are deemed revoked, repealed, or modified accordingly.

It also introduces a one-stop shop processing center (eHOPC) platform that will generate the required documents, in efforts to make application processing more efficient.

Mendoza was reported to have said the BIR expects to raise P3.1 trillion in collections this year, lower than the original target of P3.219 trillion following the impact of the flood control corruption issue on government spending.

“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,” Finance Secretary Frederick Go said in a separate statement. —AOL, GMA Integrated News