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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Under the Urban Development and Housing Act of 1992, the following incentives shall be extended to the private sector:
a) Reduction and simplification of qualification and accreditation requirements;
b) Creation of one-stop offices in the different regions of the country for the processing, approval and issuance of clearances, permits and licenses:
c) Simplification of financing procedures; and
d) Exemption from the payment of Project-related income taxes, Capital gains tax on raw lands use for the project, Value-added tax, Transfer tax for both raw and completed projects; and Donor’s tax for both lands certified by the local government units to have been donated for socialized housing purposes.
(Source: Section 20, Republic Act No. 7279)
The law says –
Under the Urban Development and Housing Act of 1992, section 20 provides for the 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:
a) Reduction and simplification of qualification and accreditation requirements for participating private developers;
b) Creation of one-stop offices in the different regions of the country for the processing, approval and issuance of clearances, permits and licenses: Provided, That clearances, permits and licenses shall be issued within ninety (90) days from the date of submission of all requirements by the participating private developers;
c) Simplification of financing procedures; and
d) Exemption from the payment of the following:
1) Project-related income taxes;
2) Capital gains tax on raw lands use for the project;
3) Value-added tax for the project concerned;
4) Transfer tax for both raw and completed projects; and
5) Donor’s tax for both lands certified by the local government units to have been donated for socialized housing purposes.
Provided, that upon application for exemption, a lien on that title of the land shall be annotated by the Register of Deeds: Provided, further, That the socialized housing development plan has already been approved by the appropriate government agencies concerned: Provided, finally, That all the savings acquired by virtue of this provision shall accrue in favor of the beneficiaries subject to the implementing guidelines to be issued by the Housing and Urban Development Coordinating Council.
Appropriate implementing guidelines shall be prepared by the Department of Finance, in consultation with the Housing and Urban Development Coordinating Council, for the proper implementation of the tax exemption mentioned in this section within one (1) year after the approval of this Act. Property owners who voluntarily provide resettlement sites to illegal occupants of their lands shall be entitled to a tax credit equivalent to the actual non-recoverable expenses incurred in the resettlement, subject to the implementing guidelines jointly issued by the Housing and Urban Development Coordinating Council and the Department of Finance.
(Source: Section 20, Republic Act No. 7279)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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