Philippine real estate companies are still going to be enjoying tax holidays and other tax breaks. Mass housing won’t be affected by the government’s strategy to lessen incentives to raise tax collection and the budget. This development comes on the heels of a plan to shelve a few incentives in the 2011 Investment Priorities Plan.
That’s great news for the Philippine real estate industry, which is on the verge of another profitable year. It’s easier—and much cheaper—to buy a house in Makati and other areas in the metro if these tax breaks continue to be offered. Housing firms will be able to provide residential properties at lower costs because of these tax holidays, which normally hold for eight years under the law.
Investing in Philippine real estate with these tax breaks in place is a good idea, as mass housing companies like Megaworld are finding out. Because of the global economic slump, tax holidays are a good way of attracting investors to the Philippines, giving cash-strapped locals a chance at employment and—perhaps—even good housing.
