DHSUD lauds BIR for simplifying tax exemption application for socialized housing
Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon Aliling (Photo: DHSUD)
The Department of Human Settlements and Urban Development (DHSUD) lauded the Bureau of Internal Revenue for its decision to simplify the application for tax exemption for socialized and economic housing.
DHSUD Secretary Jose Ramon Aliling said the decision, under the BIR’s order entitled, "Streamlining of Requirements for the Application of a CTE for Socialized and Economic Housing Projects”, will benefit not only the beneficiaries but also other housing stakeholders that include private developers.
“This streamlined and simplified processes in the housing and real estate industry is the best Christmas gift for housing stakeholders. This is also a huge boost to the ongoing rollout of President Marcos’ mass housing program which covers all socialized housing projects in the country,” said Aliling.
Under the latest BIR order, only a Socialized Housing Certification is required for private developers to apply for a Certificate of Tax Exemption (CTE), to 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.
Aliling said the simplified process to obtain CTEs from the BIR has been the clamor of the private sector for years now, “they blame the previous setup as bottlenecks in the application process and bureaucratic red tape.”
He said the simplified process will encourage more private developers to invest on more affordable but decent housing projects.
“The decision is a good timing as this will result in more socialized housing projects that low income earners could choose from,” said Aliling.