THE government has simplified the process for granting tax exemptions to socialized and economic housing projects, a move expected to lower costs, speed up project delivery and encourage greater private sector participation in the government’s mass housing drive.
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order 048-2025, streamlining documentary requirements for developers applying for a certificate of tax exemption (CTE) for socialized and economic housing projects, under the Department of Human Settlements and Urban Development (DHSUD).
Under the new order, developers need only secure a Socialized Housing Certification from the DHSUD to qualify for tax exemption, removing the need for multiple approvals that had long been cited by industry players as a bottleneck.
DHSUD Secretary Jose Ramon Aliling said the measure is aimed at streamlining government processes in the housing and real estate sector.
“This was ordered by the President — to speed up and simplify housing processes for the benefit of Filipinos who continue to dream of owning a home,” Aliling said, calling the reform a major boost to housing production.
The order supports the rollout of the government’s flagship Pambansang Pabahay para sa Pilipino (4PH) programme, which aims to scale up the supply of affordable homes nationwide through stronger private sector involvement.
RMO 048-2025 implements provisions under Republic Act 7279, as amended, and Executive Order 226, and aligns with a broader joint memorandum circular among government agencies to digitize and standardize housing-related processes.
The BIR said the measure is intended to reduce procedural delays, enhance transparency and strengthen inter-agency coordination in housing development. Authority to issue tax exemption rulings or certificates for eligible projects has been delegated to the Deputy Commissioner of the BIR’s Legal Group.
Previously, developers had to navigate multiple layers of approval to secure tax incentives, a process industry groups said slowed project timelines and increased compliance costs.
“The simplified CTE process has been the clamor of the private sector for years,” Aliling said, adding that the reform would result in more socialized housing options for low-income families and faster project rollouts in 2026.
The order takes effect immediately, the BIR said. / KOC