MANILA, Philippines - Effective January this year, the Bureau of Internal Revenue, with the endorsement of HUDCC, has effected a higher threshold for value added tax or VAT on real estate products such as lots, house and lots, and other residential dwellings such as condominium units.
Previously, properties priced at P2.5 million below enjoyed VAT-free transactions. Now, the VAT-free ceiling has been increased to properties priced up to P3,199,200.
Developer DMCI Homes lauds the move, saying: “We commend the government in its firm commitment to provide Filipinos easier and greater access to better housing options.”
Alfred Austria, president of DMCI Homes, the property development affiliate of triple-A and renowned contractor D.M. Consunji Inc., said DMCI Homes is particularly elated with the new real estate VAT ruling, with the belief that it will strengthen and grow stronger purchasing opportunities for its core target market of middle-income Filipinos and starting families.
“From the inception of DMCI Homes, our focus has always been on providing hardworking middle class Filipinos with homes that exceed their expectations and provide exceptional value for their money,” adds Austria. “Now, our condo home buyers will benefit from greater purchasing power and ownership that is much easier on their pockets.”
DMCI Homes sets itself apart in the tough real estate market by consistently offering real estate projects that buck popular trends, such as those toward maximizing profit by offering increasingly smaller units and dwellings.