The House Committee on Housing and Urban Development and the House Committee on Ways and Means on Tuesday has endorsed for plenary approval a measure making first-time home ownership easier and more affordable.
Rep. Alfredo Benitez of Negros Occidental, chairman of the House Committee on Housing and Urban Development, said the committee report on House Bill (HB) 414 will be submitted to the House plenary for deliberation after the measure’s approval at the House Committee on Ways and Means.
Benitez said the measure seeks to alleviate the condition and welfare of Filipino families, especially on the basic need for shelter.
HB 414 is authored by Ako Bicol Reps. Rodel Batocabe and Christopher Co.
The measure extends to first-time homebuyers exempt status from the payment of transfer tax due the purchase.
Also, any natural or juridical person registered as owner of a land subject of a subdivision or a condominium project; or who is a dealer directly engaged as a principal in the business of buying and selling real estate; or who is real-estate developer engaged in the business of developing and selling real-estate projects for his/her or its own account; and any natural or juridical person engaged as a contractor doing housing design and construction or engaged in the business of selling housing construction materials that grants a minimum discount of 5 percent to first-time homebuyers may claim the financial loss on the discount granted as a tax deduction.
Provided that the cost of the discount shall be allowed as deduction from the gross income for the same taxable year that the discount is granted, and that the total amount of the claimed tax deduction net of value added tax, if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code, as amended.
To ensure buyer awareness on the benefits of this act, any owner, dealer or real-estate developer, and any contractor doing housing and construction or anyone engaged in the business of selling housing construction materials shall provide a first-time homebuyer a disclosure statement of the discount that may be granted, as well as the transfer tax exemption and tax credit such buyer is entitled to under this act in the reservation contract, application to purchase, deed of absolute sale or contract to sell and other similar documents employed in the negotiation of the purchase or in the contract of work for the design or construction of the house or in the purchase order of the housing construction materials.
The first-time homebuyer shall also be provided the schedule of payment of installments or amortization until full payment of the purchase price.
The bill also said that the Housing and Urban Development Coordinating Council (HUDCC), with the assistance of the Land Registration Authority (LRA), Home Development Mutual Fund and the Bangko Sentral ng Pilipinas, shall establish within 90 days from the issuance of the implementing rules and regulation of this act a database of the names of all individuals who have availed of housing loan and of registered owners of residential properties.
The Bureau of Internal Revenue, in extending tax credit to a first-time homebuyer upon the effectivity of this act, shall share all relevant information and data on a periodic basis and make such data available to the HUDCC.
Any person who makes a material misdeclaration of statement, misrepresentation in any certification, or fraudulent act in connection with the claim for a tax reduction under the act or falsifies any document submitted to obtain a tax reduction shall be punished with a fine of not less P5,000 but not more than P50,000, or imprisonment of not less than six months or both, without prejudice to the prosecution of said offender under the Revised Penal Code.
source: Business Mirror
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