DHSUD welcomes simplified tax exemption process for socialized housing

The Department of Human Settlements and Urban Development (DHSUD) has welcomed the simplified application process for tax exemption for socialized and economic housing projects, following a new order issued by the Bureau of Internal Revenue (BIR) in coordination with the Department of Finance (DOF).

DHSUD Secretary Jose Ramon Aliling said the issuance of Revenue Memorandum Order (RMO) No. 048-2025 complies with President Ferdinand Marcos Jr.’s directive to streamline procedures in the housing and real estate sector.

“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.

Under the new BIR order, private developers applying for a Certificate of Tax Exemption (CTE) for socialized and economic housing projects will now be required to submit only a Socialized Housing Certification, instead of multiple documents previously required. The CTE will be issued by the deputy commissioner of the BIR’s Legal Group.

The Socialized Housing Certification will be issued by the DHSUD, in accordance with Republic Act No. 10884, while the tax exemption itself is anchored on Republic Act No. 7279 and Executive Order No. 226.

Aliling said the simplified process addresses long-standing concerns from the private sector, which had cited delays and bureaucratic bottlenecks under the previous system. He noted that these hurdles slowed down housing production and limited options for low-income homebuyers.

The DHSUD chief said the streamlined process is expected to support the rollout of the administration’s Pambansang Pabahay para sa Pilipino (4PH) Program, particularly in encouraging more private developers to engage in socialized housing projects.

“Malaking bagay po ito sa lahat ng housing stakeholders, lalo na ang ating mga home buyers. Mas mapapabilis ang socialized housing production,” Aliling said.

He added that the policy shift could result in more housing options for Filipinos in the low-income bracket and a more active housing sector going into 2026.

The DHSUD said it will continue working with partner agencies to further reduce red tape and improve access to affordable housing under the government’s flagship housing program.