Gov’t simplifies housing tax breaks

The Department of Human Settlements and Urban Development (DHSUD) has welcomed a new move that makes it easier and faster for housing developers to apply for tax exemptions for socialized and economic housing projects.

The change comes after the Bureau of Internal Revenue (BIR), in coordination with the Department of Finance (DoF), issued Revenue Memorandum Order (RMO) No. 048-2025, which simplifies the application process.

DHSUD Secretary Jose Ramon Aliling said the new order follows President Ferdinand Marcos Jr.’s directive to cut red tape in the housing and real estate sector.

“This was directed by President Marcos Jr. to speed up and simplify housing processes for the benefit of Filipinos who continue to dream of owning their own homes,” Aliling said.

Under the new BIR order, private developers applying for a Certificate of Tax Exemption (CTE) will now need to submit only a Socialized Housing Certification, instead of several 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 DHSUD in line with existing laws, while the tax exemption itself remains anchored on current housing and investment policies.

Aliling said the simplified process responds to long-standing concerns from private developers, who have pointed to delays and bureaucratic bottlenecks under the old system. These issues, he said, slowed housing production and reduced options for low-income homebuyers.

The DHSUD chief added that the streamlined process is expected to boost the government’s Pambansang Pabahay para sa Pilipino (4PH) Program, especially by encouraging more private developers to take part in socialized housing projects.

“This is a big help to all housing stakeholders, especially our homebuyers. It will significantly speed up the production of socialized housing,” Aliling said.

He noted that the policy change could lead to more housing options for low-income Filipinos and a more active housing sector heading into 2026.

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.