Latest Stories

BIR clarifies tax exemption rule for socialized housing projects


The Bureau of Internal Revenue clarified that the tax relief for socialized housing projects covered only buildings that were developed for the poor.

The BIR issued Revenue Memorandum Circular No. 32-2012 dated July 16 amid attempts to take advantage of a law that exempts contractors and developers of such projects from paying income tax, value added tax and other related levies, even if their projects are not qualified under the law.

In RMC 32-2012, Revenue Commissioner Kim S. Henares said the Urban Housing and Development Act of 1992 (or Republic Act No. 7279) defined socialized housing as houses and lots, or homelots, that were developed for the underprivileged or the homeless.

Tax exemption “is limited to the construction of homelots with the view of reducing the cost of housing units for the benefit of the underprivileged and homeless and to encourage greater private-sector participation in socialized housing,” Henares said.

The BIR chief reiterated that the agency’s issuances were meant to clarify the coverage of the tax rules and to stop unqualified parties from taking advantage of the tax breaks.

“The development and construction of classrooms, school buildings, multipurpose halls and covered courts, and livelihood centers are not qualified for the tax incentives,” Henares said.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: housing , Philippines , Real Estate , socialized housing , state budget and taxes , tax relief

  • pilipino

    How does this relate to the Income Tax Holiday granted to low cost mass housing projects that are accredited and approved by the Board of Investment under the Government’s Investment Priority Plan (IPP 2011 and IPP 2012)?

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • ‘I’ll make it,’ says young ferry passenger to family
  • Bad weather halts rescue after deadliest Everest disaster
  • Gigi Reyes has no other option but to turn state witness — Santiago
  • US weighing military exercises in Eastern Europe
  • Rains loom in Surigao as LPA nears
  • Sports

  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Warriors beat Clippers in playoff opener
  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace