Simpler tax exemption for socialized housing developers to boost 4PH – DHSUD

The Department of Human Settlements and Urban Development (DHSUD) on Monday welcomed the simplified requirements for developers of socialized and economic housing to secure tax exemptions, saying this is ultimately beneficial for Filipinos who want to fulfill their dream of buying a house of their own.

In a statement, DHSUD Secretary Jose Ramon Aliling said the eased tax exemption process under Revenue Memorandum 048-2025 issued by the Bureau of Internal Revenue (BIR) will help bolster the growth of the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.

He said the issuance was in compliance with President Ferdinand Marcos Jr.’s directive to streamline and simplify processes in the housing and real estate industry.

“Ito po ay inutos sa akin ni Pangulong Marcos Jr. na pabilisin at padaliin ang mga proseso sa housing sector para sa kapakinabangan ng mga kababayan nating patuloy na nangangarap na magkaroon ng sariling tahanan,” Aliling said.

(This was President Marcos Jr.’s instruction to me, to expedite and simplify the processes in the housing sector for the benefit of our countrymen who continue to dream of having a house of their own.)

He added that the BIR’s memorandum is a “huge boost” to the ongoing rollout of the Expanded 4PH Program, which covers all socialized housing projects in the country.

“Malaking bagay po ito sa lahat ng housing stakeholders, lalo na ang ating mga home buyers. Mas paiigtingin nito ang pagsusulong natin ng Expanded 4PH ni Pangulong Marcos Jr. dahil mas gaganahan at mapapabilis ang socialized housing production ng mga private developers,” he said.

(This is a big deal for all housing stakeholders, especially for our home buyers. This will boost our rollout of our Expanded 4PH of President Marcos Jr. because private developers will be encouraged to contribute and expedite our socialized housing production.)

“Napakagandang pamasko ito para sa ating mga kababayan. Mararamdaman ang epekto nito sa pagbubukas ng Bagong Taon, kaya asahan natin ang mas masiglang 2026 sa housing sector,” he added.

(This is a great Christmas gift for our countrymen. We will feel its effects as the New Year opens, so we can expect that 2026 will be livelier for the housing sector.)

Earlier in the day, the BIR released Revenue Memorandum 048-2025 on the “Streamlining of Requirements for the Application of a CTE for Socialized and Economic Housing Projects Pursuant to Republic Act 7279 and Executive Order No. 226.”

Under the simplified requirements, only a Socialized Housing Certification is required for private developers to apply for a Certificate of Tax Exemption (CTE) that will be issued by the Deputy Commissioner of the BIR’s Legal Group.

The Socialized Housing Certification, on the other hand, will be issued by the DHSUD as provided for under Republic Act 10884 or the “Balanced Housing Development Program Amendments.”

Developers only need to attach the Socialized Housing Certification to their letter-request addressed to the BIR in order to avail of the tax exemption.

Aliling noted that private developers involved in socialized housing projects have been calling for a simplified process to obtain CTEs from the BIR in the past few years.

“Napakaganda ng timing ng BIR order, bukod sa best Christmas gift para sa ating mga stakeholders. Ito rin ay magre-resulta sa mas maraming socialized housing projects na pagpipilian ng ating mga kababayang nasa low income bracket,” he added.

(The issuance of the BIR order was also well-timed, apart from being the best Christmas gift for our stakeholders. This will also result in more socialized housing projects that our countrymen from the low income bracket can choose from.) — JMA, GMA Integrated News