Tuesday, October 17, 2006 Tax notes: Increase of threshold for socialized housing
THE Housing and Urban Development Coordinating Council has increased the threshold for socialized housing package from P225,000 to P300,000 per unit and the threshold for low cost housing from P750,000 to P2 million as promulgated in Revenue Memorandum Circular 46-2006 dated July 31.
Based on previous regulations, socialized housing projects enjoy exemption from income tax while sale of raw land for socialized housing is exempt from value-added tax (VAT) and capital gains tax.
The sale of real properties for low-cost housing is also VAT-exempt. (Source: Punongbayan & Araullo)
