A proposed joint memorandum seeking to streamline fiscal and tax processes for housing development is expected to accelerate private investment in socialized and economic housing, as the government moves to cut red tape and lower project costs for developers.
According to a Department of Finance (DOF) press release dated Monday (December 22), Finance Secretary Frederick D. Go has expressed full support for the Bureau of Internal Revenue’s (BIR) initiative to simplify the application process for tax exemptions covering affordable housing projects.
The proposed Joint Memorandum Circular (JMC), involving the Department of Finance, the Bureau of Internal Revenue, and the Department of Human Settlements and Urban Development, is designed to ensure efficiency and consistency in the fiscal and tax-related aspects of housing development.
By reducing bureaucratic friction and improving predictability in tax incentives, the memo aims to encourage more developers to invest in socialized and economic housing; developers are critical to addressing the country’s housing backlog.
“I fully support the BIR in this effort, as it is my commitment to enhance the ease of doing business for our partners in development. This way, we can provide more affordable homes for low-income Filipino families,” Secretary Go said.
Central to the proposed reforms is the introduction of the One-Stop Shop Processing Center (eHOPC) platform, which will automatically generate the required documents for tax exemption applications.
The digital platform is expected to shorten processing times, reduce duplication across agencies, and lower compliance costs. These are key concerns often cited by developers as barriers to entering the socialized housing sector.
Under the JMC, applicants seeking a Certificate of Tax Exemption (CTE) will be required to submit a Socialized Housing Certification issued by the DHSUD, ensuring that tax incentives are directed exclusively to qualified projects.
To further streamline approvals, the BIR Deputy Commissioner for the Legal Group will be authorized to sign tax rulings and CTEs, eliminating additional layers of review.
The initiative aligns with President Ferdinand R. Marcos Jr.’s directive to improve bureaucratic efficiency and strengthen the ease of doing business, particularly in sectors with strong social impact.
Finance officials said the proposed memo reflects a broader policy push to use administrative reform, rather than new subsidies alone, to make affordable housing development more attractive, faster to implement, and financially sustainable.