The value added tax (VAT) exemption on the selling price of house and lot and other residential dwellings has been increased to P3.6 million, the Bureau of Internal Revenue (BIR) said.
In a social media post, BIR commissioner Romeo Lumagui Jr. said Revenue Regulation No. 1-2024 has been issued, which states that for VAT exemption purposes, the selling price threshold of the sale of house and lot and other residential dwellings has been increased from the previous level of P3.199 million.
This adjustment was made in accordance with the National Internal Revenue Code which mandates that the subject amount should be adjusted to its present value every three years using the consumer price index.
Lumagui said the issuance of the regulation shows the government’s commitment to a “just and service-oriented” taxation in the Philippines.
“The timely increase in VAT exemption shows our commitment to excellent taxpayer service,” Lumagui said.
Meanwhile, in a separate statement, the BIR said the tax chief has ordered the suspension of 26 BIR employees under his watch.
The suspension of these officials was brought about by their acts constituting grave misconduct, serious dishonesty, gross neglect of duty, violation of reasonable office rules and regulations, violation of Anti-Red Tape Act of 1997 and conduct prejudicial to the best interest of the service.
Specifically, the BIR has 21 approved formal charges with preventive suspension orders, of which 18 were implemented and the remaining three are due for implementation.
The BIR has also approved decisions imposing suspension of five employees as a penalty.
“The BIR will continue to create a culture of professionalism and integrity under my watch,” Lumagui said. Angela Celis
