DHSUD, DTI-BOI in talks for possible corporate income tax exemption on economic housing

The Department of Human Settlements and Urban Development (DHSUD) is studying the possible classification of economic housing as corporate income tax (CIT)-exempt mass housing under Batas Pambansa Bilang 220 with the Department of Trade and Industry-Bureau of Investments (DTI-BOI).

In a statement on Sunday, DHSUD Secretary Jose Ramon Aliling said their proposed study seeks to place economic housing projects under a clearer, rules-based, and more predictable tax incentive framework comparable to socialized housing.

The initiative also supports the government’s goal of expanding access to affordable housing while easing regulatory processes that affect priority sectors, particularly the working class.

“Hangad natin ang isang malinaw at maayos na sistema para sa Economic Housing. Kapag malinaw ang mga patakaran at pantay ang pagpapatupad, mas nagiging mabilis ang pagtugon sa pangangailangan sa pabahay at mas pinapalakas ang tiwala ng pribadong sektor,” Aliling said.

(We wish for a clear and orderly system for economic housing. If rules are clear and implementation is fair, we can address the needs for housing faster and strengthen the private sector’s trust.)

“Alinsunod po ito sa direktiba ni Pangulong Marcos Jr. para sa whole-of-government approach sa pagsusulong ng disente, ligtas at abot-kayang pabahay at may dignidad na pamumuhay sa ating mga kababayan,” he added.

(This is in line with President Marcos Jr.’s directive for a whole-of-government approach to promote decent, safe, and affordable housing and a dignified way of life for our countrymen.)

To advance the proposed policy review with DTI-BOI, Aliling recommended the formation of a technical working group (TWG) that will conduct technical evaluations and craft policy recommendations for further consideration by the concerned agencies.

Aliling expressed confidence that the initiative will contribute to faster housing development, improved coordination across government agencies, and a more transparent and predictable incentive framework for housing projects compliant with Batas Pambansa Blg. 220 on standards and technical requirements for economic and socialized housing projects.

“Hindi lamang ito usapin ng buwis. Ito ay tungkol sa malinaw na direksyon, tiwala sa pamahalaan, at sama-samang pagkilos upang matugunan ang pangangailangan sa abot-kayang pabahay,” he said.

(This is not just a matter of taxes. This is about a clear direction, trust in the government, and cooperation to address the need for affordable housing.)

Earlier, the DHSUD said the simpler, uniform process for tax exemption for socialized and economic housing projects under the Bureau of Internal Revenue’s (BIR) Memorandum Order 048-2025 will be a boost to the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program, ultimately benefiting Filipinos.

The DHSUD and the Department of Economy, Planning, and Development (DEPDev) also issued Joint Memorandum Circular 2025-001 that adjusted the price ceiling for socialized housing projects under the 4PH Program.

“Lahat po ito ay para ma-sustain natin ang vibrancy sa housing sektor, mas pabilisin, linisin at pahusayin ang mga polisiya para sa kapakinabangan ng ating mga stakeholders, lalo na ang mga home buyers,” Aliling said.

(All of these are aimed at sustaining the vibrancy of the housing sector, and to speed up, clarify, and improve our policies for the benefit of our stakeholders, especially the home buyers.) — JMA, GMA Integrated News