The Philippine government has taken a major step to accelerate its national housing program by dramatically simplifying how developers obtain tax breaks for building affordable homes.
Streamlined Process for Faster Housing Delivery
On December 21, 2025, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order 048-2025, which slashes the documentary requirements for developers seeking a Certificate of Tax Exemption (CTE). This move directly addresses a long-standing complaint from the private sector about bureaucratic delays.
Under the new rules, developers of socialized and economic housing projects now only need to secure a single document: a Socialized Housing Certification from the Department of Human Settlements and Urban Development (DHSUD). This eliminates the previous need for multiple approvals from different agencies, a process widely seen as a bottleneck that increased costs and slowed down project timelines.
A Direct Order for Filipino Homeowners
DHSUD Secretary Jose Ramon Aliling emphasized that this reform is a presidential directive aimed at helping ordinary Filipinos achieve their dream of homeownership. "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 stated. He hailed the measure as a significant boost to housing production nationwide.
The reform is a key support mechanism for the government's flagship Pambansang Pabahay para sa Pilipino (4PH) program. The 4PH initiative aims to massively increase the supply of affordable housing across the country by fostering stronger collaboration with private developers.
Enhanced Transparency and Immediate Effect
The BIR clarified that the order is designed to achieve several critical goals:
- Reduce procedural delays in housing development.
- Enhance transparency in granting incentives.
- Strengthen coordination between the BIR, DHSUD, and other involved agencies.
Authority to issue final tax exemption rulings has been delegated to the Deputy Commissioner of the BIR's Legal Group. This centralization is expected to make the process more efficient and consistent.
Secretary Aliling noted that the simplified CTE process has been a top request from the private sector for years. He anticipates that this change will lead to more housing options for low-income families and faster project rollouts as early as 2026.
The BIR confirmed that RMO 048-2025 took effect immediately upon its issuance. The order implements provisions under Republic Act 7279 and Executive Order 226, and aligns with a broader government push to digitize and standardize housing-related processes.
