RMO No. 48-2025 — Streamlining of Requirements for the Application of a Certificate of Tax Exemption for Socialized and Economic Housing Projects Pursuant to Republic Act No. 7279 and Executive Order No. 226 Digest | Full Text | Annex 1-A | Annex 1-B | Annex 1-C | Annex 1-D | Annex 1-E

BUREAU OF INTERNALREVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building PILIPINAS BAGONG

DEC 1 9 2025

REVENUE MEMORANDUM ORDER NO. 0 4 8_ - 2 0 2 5

SUBJECT Streamlining of Requirements for the Application of a Certificate of Tax

Exemption for Socialized and Economic Housing Projects Pursuant to Republic Act No. 7279 and Executive Order No. 226

TO : All Internal Revenue Officials, Employees and Others Concerned

SECTION 1.Background

Program Amendments", introduced key enhancements to the incentives granted under Section 20 of RA No.7279.Notably, the law expressly states that a socialized housing certification issued by the Housing and Land Use Regulatory Board (HLURB) is already sufficient for a developer to qualify for tax exemption, thereby removing additional layers of approval and simplifying compliance for housing developers, viz: Republic Act (RA No. 10884, also known as the Balanced Housing Development

"SEC. 20. Incentives for Private Sector Participating in Socialized Housing - To encourage greater private sector participation in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless. the following incentives shall be extended to the private sector:

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E -30Pm 3 UYII 1A O DEC 19 2025 S DR S ANTERME EN REAU appropriate government agencies concerned: Provided, finally, That all the savings exemption: Provided, further, That upon application for exemption, a lien on the title realized by virtue of this provision shall accrue in favor of the beneficiaries subject of the land shall be annotated by the Register of Deeds:Provided,furthermore,That the socialized housing development plan has already been approved by the to the implementing guidelines to be issued by the Housing and Urban Development Coordinating Council." (Emphasis supplied) Provided, That a socialized housing certification issued by the Housing and Land Use Regulatory Board shail be sufficient for the purpose of availment of tax

An Act to Provide for A Comprehensive and Continuing Urban Development and Housing Program, Establish the

2 The regulatory functions formerly exercised by the HLURB are now vested in the Department of Human Settlements and Urban Development. Mechanism for Its Implementation, And for Other Purpose

BIR National Office Bldg. Senator Miriam Defensor-Santiago Avenue,Diliman, Quezon City Trunkline: 8981-7000 ; 8929-7676 Website:www.bir.gov.ph

Joint Memorandum Circular (JMC) entitled "Streamlining and Digitalizing the Processes Further, the Bureau of Internal Revenue (BIR), as one of the principal signatories to the

Developments" plays a vital role in advancing the government's efforts to simplify, standardize. and digitalize the processes for land acquisition, development, construction, and disposition of all Involved in the Acquisition, Construction and Development, and Disposition of All Housing

housing projects. The JMC aims to reduce procedural bottlenecks, minimize delays, enhance transparency and strengthen inter-agency coordination.

tax-related aspects of housing development. Specifically, the BIR is mandated to streamline the Within this framework, the BIR's role is crucial in ensuring efficiency in the fiscal and

projects. Key provisions of the JMC relating to the BIR's responsibilities include: application process for tax exemptions or rulings involving socialized and economic housing

"SECTION 6.ROLES AND RESPONSIBILITIES OF SIGNATORY AGENCIES

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of a BIR Ruling / Certificate of Tax Exemption for housing developers undertaking socialized and economic housing projects pursuant to Republic Act No. 7279, as 6.14. The BIR shall provide the streamlined application process for the application

for a BIR ruling, creditable withholding tax shall not be imposed on income project or activity during the Income Tax Holiday availment period.' payments made to BOI Registered Business Enterprises related to their registered amended and Executive Order No.226, as amended. However, without the need

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8.10.2. BIR Tax Exemption for other Housing Development Projects

The BIR shall implement a streamlined process for BIR Ruling or Certificate of Tax

to process these applications efficiently.' To facilitate this, the eHOPC platform shali provide a mechanism capable of generating the necessary documentary requirement required by the BIR to be able Exemption applications within sixty (60) working days upon issuance of this JMC

SECTION 2. Requirement for a Certificate of Tax Exemption.

Certificate of Tax Exemption (CTE) for socialized housing projects pursuant to Section 20 of RA No. 7279, as amended, and economic housing projects pursuant to Executive Order (EO) No. 226. hereby issued to streamline the documentary requirements for the application of a ruling / Housing Certification, which shall be attached to a letter request in compliance with Section 4 of Revenue Memorandum Order No.9-2014. Therefore, to avail of the above CTE, applicants need only to submit the required Socialized To implement the above provisions of the aforesaid JMC and RA No.10884,this Order is

See Annex 1 for the checklist of documentary requirements. 4 See Annexes 1-A to 1-E for the sample format of the Socialized Housing Certification. BUREAU OFINTERNALREVENUE RECORDS MANAGEMENTDIVISION

DEC 1 9 2025

BY DADMIN UNITIMA 3:30Pm

SECTION 3.Authorized Signatory.

7279 and economic housing projects under EO No. 226 is hereby delegated to the Deputy Commissioner of the Legal Group of the BIR. authority to sign rulings or CTEs on tax incentives for socialized housing projects under RA No Pursuant to Section 7 of the National Internal Revenue Code of 1997, as amended, the

SECTION 4.Repealing Clause.

or modified accordingly. Any revenue issuance which is inconsistent with this Order is deemed revoked,repealed.

SECTION 5.Effectivity.

wide publicity as possible. This Order shall take effect immediately. All concerned are enjoined to give this Order a

CHARLITO MARTIN R. MENDOZA

Commissioner of Internal Revenue

5 /RECORDSMANAGEMENTDIVISION BUREAU OFINTERNALREVENUE

DEC 1 9 2025

BY AOMIN UNIT.3 TIME: 3: 3op

K1-RPT