BOI ANNOUNCES INCREASE OF THRESHOLD PRICE PER HOUSING ELIGIBLE FOR TAX INCENTIVES; EXTENDS INCOME TAX HOLIDAYS

October 21, 2023 Provincial

Cordillera developers join crucial discussions on country’s housing agenda

The Philippine Board of investments (BOI) has announced the increase of threshold price per housing unit eligible for government tax incentives from P2 million to P3 million, according to a release issued by Subdivision and Housing Developers Association, Inc. (SHDA). BOI’s action, actually was in response to the call from developers during the recent National Developers
Convention held in Cebu City, organized and hosted by the SHDA, the largest and leading industry association for housing and urban development in the country.

Mary Ann Raganit, Director of the Infrastructure and Service Industries Service at the BOI who made the announcement. Raganit added that BOI will extend the income tax holiday (ITH) period from four years to six years. 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.

As this developed, it is expected that there will be significant shift in government policy and it welcomed by the housing industry, particularly around 500 mass developers and housing professionals to include from Cordillera and Ilocos Region who attended the 2-day convention, sponsored by 8990 Holdings Inc., Banco de Oro (BDO), Bank of the Philippine Islands (BPI), Holcim, MyCitiHomes, China Bank, APEC Homes, Davies Paints Philippines, Pag-IBIG Fund
(HDMF), Joy-Nostalg, SMDC, Ayala Land, Phinma Construction Materials Group, Steeltech Colored Roofing, EastWest Bank, and Cebu LandMasters.

Top officials from concerned government agencies participated in the convention, and highlighted
their collaborative efforts to address the country’s housing industry like on the Marcos administration’s Pambansang Pabahay Para sa Filipino Housing program and its goal of building at least 6 million housing units in six years. “The reason why we have the convention yearly is to be
able to assess where we are against the 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 National Chairman, Ms. Arlene Keh stated.

Primo Agatep/ABN