Real estate developers get more tax incentives

The Board of Investments (BOI), the state-owned investment promotion agency, has announced a higher threshold price for housing units eligible for government tax incentives

The new threshold is now P3 million from P2 million previously, the BOI announced during the recent National Developers Convention in Cebu City hosted by the Subdivision and Housing Developers Association (SHDA).

In addition to the increased threshold, the BOI also extended the income tax holiday (ITH) period to six years from four years, said Mary Ann Raganit, director of the Infrastructure and Service Industries Service at the BOI.

The higher threshold and longer ITH period represent a significant shift in government policy.

Housing industry players, particularly around 500 mass developers and housing professionals who attended the two-day SHDA convention welcomed the positive changes.

The extended threshold for tax incentives and the longer ITH period will provide developers with increased financial incentives, making it more attractive for them to undertake housing projects.

Raganit noted that the BOI expects to see an influx of new project registrations following this announcement. These changes will not only benefit developers but also have the potential to stimulate economic growth and encourage more housing projects to address the nation’s housing needs.

In line with these developments in the housing industry, day 1 of the SHDA’s National Developers Convention addressed critical issues and concerns within the housing industry. 

Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar graced the event and delivered the message of President Marcos. 

Pag-IBIG CEO Marilene Acosta delivered her keynote address for the convention and was followed by Dr. Stan Padojinog, president of the University of Asia and the Pacific who mentioned in his speech the Marcos administration’s Pambansang Pabahay Para sa Filipino Housing program and its goal of building at least six million housing units in six years.

During the convention, stakeholders also called for a collaborative housing roadmap, incentives for developers as part of the Survey of Income and Program Participation 2022 and discussed real estate tech trends, and building resilient communities.

Local development

SHDA national president Ar. Leonardo Dayao Jr., for his part, discussed the steps SHDA is taking to empower the local housing sector by collaborating with local government units (LGU). 

“Several developers of ours here are partnering with their different LGUs. We have one in Iloilo, Novaliches, so we have several developers already. The idea here is that we will partner with the local government who has the land so that we can help build and then make housing affordable,” Dayao said.

Among the notable figures in the housing industry and local government officials who attended the convention were Rep. Eduardo “Edu” Rama of the South District of Cebu City who delivered the welcome message to kick off the event. 

SHDA national Chairman Arlene Keh said the purpose of the yearly convention is to be able to assess where the industry is against its roadmap “so that we know if we need to adjust strategies or we need to create new ones with the objective to be able to provide housing for each Filipino family.”

SHDA is the largest and leading industry association for housing and urban development in the Philippines. It has 350 members nationwide and eight regional chapters: unmatched connections amongst the country’s top players, and a dynamic national network of small and medium developers. 

It has actively partnered with the nation’s housing policymakers, key shelter agencies, and stakeholders for over 50 years, thereby developing and strengthening the capabilities of the industry. 

It has unparalleled reach amongst Philippine homebuyers with 80 percent of homes produced annually in the country built by its member developers.