MANILA, Philippines - The Board of Investments (BOI) has given a four-year income tax holiday (ITH) to SM Development Corp. (SMDC) for its P1.05-billion mass housing project in Tagaytay City.
This is SMDC’s seventh application for BOI registration under the vertical mass housing category. The firm has five existing BOI-registered mass housing projects located in Quezon City (Sto. Cristo, Katipunan Ave. and Gilmore St.); Sta. Mesa, Manila; San Dionisio, Parañaque City; and the Sun Residences Tower 1 in España corner Mayon St. also in Quezon City.
The mass housing project in Tagaytay, dubbed Wind Residences Towers 1 and 2, involves the development of 22,597 square meters of land for the construction of two condominium buildings comprising 20 storys each.
A total of 1,499 low-cost/economic housing units will be built and sold with a package price ranging from P1.8 million to P3 million each. The housing units will be composed mainly of studio and one-bedroom types measuring 20 sqm and 35 sqm, respectively.
The project involves a total investment of P1.05 billion which will cover land cost, pre-operating expenses, site preparation, capital equipment, building construction and working capital. The project has a manpower requirement of 576 employees.
The project is expected to start commercial operation in December 2010.
Based on the BOI’s 2010 Investments Priorities Plan (IPP) guidelines for low-cost mass housing projects, projects in less served areas may be entitled up to four years ITH. In general, projects in NCR may be entitled to three years ITH.
The project is entitled to a four-year ITH since it is new and located in Region 4, one of the identified less served areas for mass housing.
The BOI said that prior to the availment of ITH, SMDC shall submit proof of compliance that at least 20 percent of the total cost of building construction and site preparation for vertical housing projects has been developed and allocated for socialized housing within the same city or municipality. This may be complied with through any of the following modes: new settlement; slum upgrading; and joint-venture projects.