BOI Incentives for Mass Housing 27 th SHDA National Developers Convention “Roadmap to BALAI 2028” OIC-Director Mary Ann E. Raganit Board of Investments 14 September 2018, Xavier Sports and Country Club, Cagayan de Oro
BOI Incentives for Mass Housing
27th SHDA National Developers Convention“Roadmap to BALAI 2028”
Mass Housing
OIC-Director Mary Ann E. RaganitBoard of Investments
14 September 2018, Xavier Sports and Country Club, Cagayan de Oro
The Board of InvestmentsThe Board of Investments
We are at the forefront of the development and promotion of industries.
Advisory-Information-Promotion-Incentives-Policy Advocacy
I. Preferred Activities
1. MANUFACTURING
2. AGRICULTURE, FISHERY AND FORESTRY
3. STRATEGIC SERVICES
4. HEALTHCARE SERVICES
II. Export Activities
Production & manufacturing of export products
Services exports
20172017--2019 Investment Priorities Plan2019 Investment Priorities Plan“Scaling Up and Dispersing Opportunities”“Scaling Up and Dispersing Opportunities”
III. Special Laws
5. MASS HOUSING
6. INFRASTRUCTURE AND LOGISTICS
7. INNOVATION DRIVERS
8. INCLUSIVE BUSINESS MODELS
9. ENVIRONMENT OR CLIMATE CHANGE-RELATED PROJECTS
10.ENERGY
4
Mass Housing
• Filipino-owned or at least 60%-40% ownership
• Selling Price: Above PhP450K to PhP2.0M
• Minimum: 20 livable dwelling units in a single site orbuilding
• Location: Outside Metro Manila
Qualifications for Registration (EO 226)Qualifications for Registration (EO 226)
• Location: Outside Metro Manila
• For condominium projects, at least 51% of the totalgross floor area must be devoted to housing
• Development Permit, HLURB Registration andLicense-to-Sell
• Compliance with the Socialized HousingRequirement
Qualifications for Registration (EO 226)Qualifications for Registration (EO 226)
In-City Housing for Lease covers newlyconstructed, low to medium-rise anddormitory-type housing projects includingthose located in Metro Manila.
Housing Components covers theHousing Components covers themanufacture of modular housingcomponents, e.g., roof/framing systems,wall/partition systems, flooring systems,door/window systems, finishing/ceilingsystems, etc.
Registration Process Flow
PERD issues Acceptance Slip → Accounting Division forthe Order of Payment → Cashier for payment of filing fee→ Records Division to officially file the application
Client presents application documents to ProjectEvaluation and Registration Division (PERD) forchecklisting.
Documents are in order?
Client completes/ corrects the documents (as per deficiency letter).
Yes
No
Client waits for the release of theCertificate of Registration.
→ Records Division to officially file the applicationtogether with the photocopy of Official Receipt → PERDwill issue the Notice of Filing of Application which shall bepublished in a newspaper of general circulation.(Within the day)
Preparation of final evaluation report forpresentation/approval by MANCOM andratification by the Board. Client waits forthe result of application. (Within 20 WDs )
Client receives Notice of Approval
Client submits pre-registration requirements to PERD within60 days with 30 days allowable extension, pays theregistration fee to the Cashier and provides photocopy ofOfficial Receipt to PERD. (Within the day)
Note: A site visit/ ocular inspection may be conducted if needed.
1. 4 Years Income Tax Holiday (ITH)2. Duty-free importation of capital equipment (EO
57)3. Additional deduction for labor expense
(after 5th year ITH)4. Additional deduction from taxable income of the
cost of major infrastructure works of projects
BOI Incentives (EO 226)BOI Incentives (EO 226)
cost of major infrastructure works of projectslocated in less developed areas (LDA)
5. Employment of foreign nationalsOtherOther::
• Exemption BOI-registered projects to LocalBusiness Tax (Section 133 of RA 9160 or the LocalGovernment Code of 1991)
Socialized Housing Requirement (SHR)Socialized Housing Requirement (SHR)
All economic/low cost housing projects mustcomply with the 20% SHR by building SH unitsequivalent to:a. 20% of the total registered area or project
cost for subdivision projects;cost for subdivision projects;b. 20% of the total floor area of qualified
saleable housing units; or,c. 30% of (20% of building construction cost) or
40% of the entitled ITH for condominiumprojects who will opt to comply through thedirect participation scheme
Socialized Housing RequirementSocialized Housing Requirement
SHR compliance may be any or acombination (i.e. cost recoverable and non-recoverable modes) of any of the followingmodes:
1. Development of a new settlement1. Development of a new settlement2. Development of a new settlement through
joint venture with SHFC, LGU orDeveloper/NGO accredited by HLURB
In the case of joint venture projects, the BOI registered entity shall berequired to provide proof of funds transferred or assessed value of the land,where applicable, to the implementing entity
Socialized Housing RequirementSocialized Housing Requirement
3. Development of a new settlement through donationof land with basic infrastructure facilities and/orconstruction materials (preferably locallyproduced) in partnership with relevant LGU, keyshelter agency, or with BOI/HLURB-accreditedNGO in any of the following:NGO in any of the following:
a. Comprehensive rural community housing development (w/ social services + livelihood)
b. To benefit families in calamity-stricken or armed conflict areas
BOI-Registered MH Projects
BOI-Registered Housing Projects (Economic and Low Cost)
Total as of August 2018
No. of Projects 1,308Horizontal 950
Vertical 358Registered Capacity (units) 613,270Registered Capacity (units) 613,270
Horizontal 374,656Vertical 238,614
Total Project Cost P513.9 billionJob Generation 331,370
1. HLURB Revocation of the Issuance of Temporary License to Sell (TLTS)
– Effective July 1, 2017 HLURB through its BoardResolution No. R-948 stopped the issuance of TLTSto condominium developers.
– TLTS (in lieu of LTS) is among BOI’s pre-registrationrequirements for condominium projects prior to
Updates on Housing Industry Issues
requirements for condominium projects prior tothe issuance of Resolution No. R-948
– BOI is awaiting for submission of letter from SHDAdiscussing HLURB-related regulatory issues forappropriate action of our Investment AssistanceService
2. BIR Rulings for BOI-Registered Housing Projects
– BIR still requires a BIR Ruling prior to thedeveloper’s availment of the CreditableWithholding Tax (CWT) exemption
– Slow processing time of BIR Ruling which
Updates on Housing Industry Issues
– Slow processing time of BIR Ruling whichtake years
– Draft MOA between BOI and BIR forfacilitation of issues, concerns and queriesof BOI clients
3. Proposed Amendments for 2017 IPP in Mass Housing (Special Registration)
MASS HOUSING (ECONOMIC and LOW COST)
Type of Development
Location of
Main Project
CoverageSHR Compliance
ComputationHLURB Compliance
under RA 10884Mode of Compliance
For Condominium:20% of the BuildingConstruction Cost of Qualified Saleable Units
5% of Project Cost
Must be through direct participation/ partnership with Social Housing Finance Corporation (SHFC) socialized housing projects for Informal Settler Families (ISFs) as jointly
Residential Condominiu
m and Subdivision
Projects
Outside or
Within NCR
Projects with housing units above P2 M
up to P3 Million
Qualified Saleable Units
For Subdivision:20% of Total Project Cost(BOI Registered)
Note: but not to exceed50% of the total ITH of the project
15% of Project Cost
Settler Families (ISFs) as jointly identified by HUDCC, BOI andindustry associations.
The BOI will select from SHFC list of on-going projects including their target beneficiaries the first 2 projects to be prioritized forcompletion through the compliance./contribution (non-recoverable) of registered housing developers.
BOI will closely monitor the progress of these housing projects to speed up and ensure the resettlement of the concerned ISFs.
Trade and Industry Development (TID) Talks
You are invited!
06 November 2018 (Tuesday)Venue: TBA
Mass Housing, Construction, Cement, Ceramics
BOI Investment Facilitation ServicesBOI Investment Facilitation Services
Aftercare Service
• Strategic Investor’s Aftercare Program (SIAP)
• Issues and Concerns Facilitation
• The Investment Promotion Unit Network (IPUNET)
• Strengthening the Collaborative Governance thru Memorandum of Agreements (MOAs) with Specific Government AgenciesSpecific Government Agencies
• Coordination with Investment Ombudsman (IO)
• BOI ASSIST (Awareness Seminar to Strengthen Investors and Stakeholders)
• BOI One Window Network
• Public Assistance and Complaints
BOI Investment Facilitation ServicesBOI Investment Facilitation Services
Due diligence assistance
• Information support
• Visit program development & investment briefing
• Business matching• Business matching
Business registration facilitation
• Fast tracking of applications for registration
• Assistance with Local Government Unit (LGU) requirements
Thank you!
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