21/05/2026
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SHDA Chairman Francis Richmond Villegas, 1st Vice President Atty. Marianne Reyna Lina-Cruz, Assistant Corporate Secretary Clarissa De Joya, Governor Joel Punzalan, and Officers from Property Company of Friends, Robinsons Land, SM Development Corporation, and Fino Property Ventures conducted a meeting with the team of BIR Deputy Commissioner-Legal Group Atty. Larry Barcelo to present a Consultative Discussion on the VAT Treatment of Donation of Subdivision Roads, Open Spaces, Parks, and Common Areas to local government units under PD957 and PD 1216 on May 21, 2026, at BIR Central Office, Diliman, Quezon City.
Led by the Managing Partner of Ramon F. Garcia & Company, CPAs, Mr. Ramon Garcia, the delegation presented some concerns and recommendations on the mandatory turnover of subdivision open spaces to LGUs being subject to VAT and interpreted as "transactions deemed sale".
SHDA shared with the BIR that the VAT imposition on the donation of open spaces could also impact housing delivery on top of the experiences in securing necessary housing permits and licenses. The association also suggested that there is a need for a uniform application of the law across the country, and the same be harmonized with existing statutes, specifically PD 1216 and other DHSUD administrative issuances.
The BIR responded that they are currently drafting a BIR circular addressing clarification on pertinent tax issues, including the vatability of donated open spaces, and will remain in constant communication and dialogue with the private sector on other important tax matters related to housing developers.
SHDA, led by Chairman Villegas, expressed its further support and cooperation to the BIR Legal Group in improving tax regulations towards a better real estate regulatory environment.
