SMDC seeks incentives for its Pampanga housing project
SM DEVELOPMENT Corporation (SMDC) has applied for incentives under the Board of Investments (BoI) for its low-cost housing project in Pampanga.
In a notification published in a newspaper on Saturday, BoI said that the Sy-led company is applying to register as a new developer of economic and low-cost housing project under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and the Preferred List – Mass Housing of the 2020 investment priorities plan (IPP).
The company is developing SMDC Cheerful Homes Phase 2, a residential subdivision offering 922 units in Barangay Sta. Maria, Mabalacat City.
CREATE, or Republic Act No. 11534, reduced the corporate income tax and reformed the country’s fiscal incentive system. Sectors identified by the government would enjoy income tax holidays for 4-7 years, then a special corporate income tax for 10 years.
The IPP is the provisional list for sectors qualified to receive such incentives from the government while the Strategic Investment Priority Plan (SIPP) is being developed.
The 2020 IPP will be the transitional list until the end of this year or until the new SIPP is approved, Trade Secretary Ramon M. Lopez said in April.
A mass housing unit development based on a P2 million price ceiling is covered under the 2020 IPP, along with in-city low-cost dwelling projects for lease or rent.
The Department of Finance said that industries under the SIPP will be classified into three tiers based on their ability to make high-value investments that will create more jobs.
Persons with objections to the project may file it in writing with the BoI within three days from Saturday, BoI Infrastructure and Services Director Angelita F. Arcellana said in the notice. — J.P.Ibañez
