Category Archives: Real Estate Investments

DoF backs tax amnesty extension

May 5, 2021

THE DEPARTMENT of Finance (DoF) and the Bureau of Internal Revenue (BIR) expressed support for the two-year extension of the estate tax amnesty, citing difficulties in implementation and below-target revenues amid the pandemic.

Finance Undersecretary Antonette C. Tionko said the DoF does not object to the extension of the estate tax amnesty, which is set to expire on June 15.

“So we recognize that there have been difficulties in the implementation of the amnesty and the revenue that we expected has not been collected because precisely of some technicalities in the implementation,” she told a Senate Ways and Means committee hearing.

“Because you know, we recognize that it takes time to have all these extrajudicial settlement agreements, all the papers you need, all your tax debts and everything. We recognize that it takes a long time to get all of those and then we had (the pandemic),” she added.

BIR Deputy Commissioner Marissa O. Cabreros said some of those who want to avail of the tax amnesty are having difficulty in getting required documents due to the ongoing restrictions on travel.

She said the government has so far collected around P2.5 billion from about 43,700 who availed of the estate tax amnesty, well below the DoF’s P6-billion target.

The Senate panel is discussing Senate Bill No. 2051, which seeks to amend Republic Act (RA) No 11213 or the Tax Amnesty Act by extending the availment period until 2023.

RA 11213, which took effect on May 31, 2019, gave a one-time opportunity for taxpayers to settle unpaid estate taxes as of Dec. 31, 2017.

Ms. Tionko, however, flagged the bill’s provision that states that if the estate involves properties that are still in the name of a decedent or donor, the present holder, and heirs shall only file one estate tax amnesty return.

The same provision was already vetoed by President Rodrigo R. Duterte when he signed RA 11213 in February 2019.

Senator Franklin M. Drilon said Congress only has nine session days from May 17 to June 4 to approve the measure before the second regular session is adjourned.

“This law, the amnesty will expire on June 15… So we must rush this measure in order, if we are minded, in order that we can have the measure on the desk of the President before June 15,” he said.

The House of Representatives approved the counterpart measure on third reading in September 2020.

Robert Nomar V. Leyretana, deputy administrator of the Land Registration Authority, recommended the deletion of the law’s provision requiring proof of settlement of the partition of the estate through submission of judicial or extrajudicial documents, saying this may hamper the amnesty application process.

“The intention is there to beat the deadline but the requirement of the law is that there should be a settlement first,” he said.

“While they are trying to beat the deadline but because of their inability to gather the heirs of the decedent, they would not be able to settle it and therefore most likely, they cannot beat the deadline,” he added.

BIR’s Ms. Cabreros also said that there are those who are willing to settle their tax but cannot do so because they lack the extrajudicial partition document, noting instances where some of the heirs are not in good terms and refuse to sign.

“Maybe we can focus on the payment of taxes. Anyway, what we’re after is the payment of…the estate tax on what the decedent level of property is. It’s a different matter when we’re talking about how the heirs will split it,” she said in Filipino.

Mr. Drilon said he has “no problem” in deleting the parts requiring the said document.

The bill is not among the 25 priority measures identified by the Legislative-Executive Development Advisory Council to be approved by Congress before the end of 2021. — Vann Marlo M. Villegas

Treasury launches ‘Premyo’ bonds

THE BUREAU of the Treasury on Monday launched its one-year peso-denominated “Premyo bonds para sa bayan” (Premyo bonds) as part of its bid to lure more small investors to government securities.

Here, four players can each win up to P1 million in cash or non-cash prizes such as real estate for as low as P500 in investment.

During the bond’s launch yesterday at the Development Bank of the Philippines (DBP), National Treasurer Rosalia V. De Leon announced that three property developers — DoubleDragon Properties Corp., Vista Land and Landscapes, Inc. as well as Megaworld Corp. — have partnered with the government to offer grand prizes during quarterly draws.

Ms. De Leon said the Premyo bonds are designed to encourage Filipinos to save while contributing to nation building, by reducing the minimum investment “to just P500” from the usual floor of P5,000. The Treasury also made it more convenient to invest by providing the option of applying online. Investors can also acquire the bonds through authorized selling agents.

“Premyo Bond, in small ways hopefully, could demonstrate that, if done right, digitalization of finance offers a gateway to achieve significant inroads towards financial inclusion and payments efficiency,” she said in a speech.

In a disclosure yesterday, Doubledragon said one winner will win a P6-million unit at Hotel 101 Fort in Bonifacio Global City in Taguig City in one of the four draws.

“The Premyo Bonds are a great way to incentivize first-time retail bond investors to try out investment instruments like this as a way for them to optimize and diversify their savings. It is also a great way to support our country and help spur inclusive growth,” DoubleDragon Chairman Edgar J. “Injap” Sia II said in the disclosure.

Under its cash reward tier, a total of P3 million will be raffled off during the quarterly draws where one winner will win P1 million, 10 winners to win P100,000 while 50 winners can win P20,000.

“On every cash rewards draw date, each Premyo Bonds unit shall be assigned a 20-character electronic Rewards Number (“e-RN”) using the Cash Rewards application system,” the Treasury said in a notice.

It added that “a bondholder in possession of multiple Premyo Bonds units may win multiple times.”

In a Nov. 22 notice, the Treasury said that the bonds will be in “scripless form” and will have a minimum required investment of P500 and integral multiples of P500 thereafter. The issue has an initial size of P3 billion but the Treasury has the option to upsize.

“The Bureau of the Treasury has the option to upsize, but our target right now is P3 billion and we can still continue the offering and get a higher volume,” Ms. De Leon said during Monday’s launch.

The debt papers carry an interest rate of three percent per annum to be paid quarterly and subject to a 20% final tax.

While there will be no maximum investment, a bondholder can have a maximum of 20,000 Premyo bond units worth P10 million per selling agent to qualify for the rewards scheme.

Eligible investors for the bond issuance includes individuals who have a local bank account, cooperatives, qualified associations such as nonstock and loans associations as well as trust entities, among others.

The bond offer period runs from Nov. 25 to Dec. 13.

“When subscription has reached a level deemed sufficient by the BTr, the BTr shall announce the termination and closure of the offer period through the BTr Web site or in any electronic financial information providers chosen by the BTr,” it said.

Selling agents for the transactions are BDO Unibank, Inc.; BDO Capital and Investment Corp.; Chinabank Corp.; China Bank Capital Corp.; Development Bank of the Philippines; First Metro Investment Corp.; Land Bank of the Philippines and Metropolitan Bank & Trust Co. — Beatrice M. Laforga

Iligan-based developer to build first township

The Freeman
Ehda Dagooc-July 17, 2019

CEBU, Philippines — Iligan-based company Kinmen Land Developer Inc. yesterday announced to develop a 20-hectare township in barangay Tamiao, Compostela, northern Cebu.

Kinmen Land, which is originally engaged in construction and hardware, decided to utilize its acquired properties in Cebu starting with the masterplanned township project that will be built in 17 phases in the next five to 10 years.

Kinmen Land president and chief executive officer (CEO) Bennett Palang said his company has been accumulating land bank in Cebu for its plan to enter into property development here.

Established in 2005, Kinmen Land Developer Inc. developed Iligan’s The Strip Mall at Pala-o in 2006.

This time, the company is determined to penetrate Cebu starting off with this integrated development project. The township will offer more or less 2,000 house and lot units set in townhouse with garden type, a ranch-setting destination, commercial outlets, and other facilities that will complete the live, work and play cycle.

Yesterday, Kinmen Land signed a memorandum of agreement (MOA) with the project’s execution consulting group, Estates + Frontiers Group, Inc. (EFG) led by Lydwena Eco to conceptualize the over-all masterplan.

EFG will manage the project as well as provide the end-to-end real estate services, from land acquisition, project conceptualization, execution, and sales to after-sales, documentation, project turn-over, and property management.

The sprawling township development is patterned after the successful integrated developments in the country such as the Ayala Land developed Nuvali Park in Sto.

Rosa Laguna, only that it will introduced its own identity.

Initially, Eco said the planning team is looking at dedicating the five-hectare for a ranch-type destination that will have a strip of log cabin diners, glamping facilities, horse back riding, and other leisure activities.

The riverside development is envisioned to be one of the first of its kind township developments in the Visayas.

World-class rice flourishes in Leyte

The Philippine Star
May 19, 2019
Manly Garcia

Thanks to its state-of-the-art technology, a rice processing complex in Leyte has been able to craft first class rice that’s fresh, pesticide-free and aromatic out of the otherwise plain-looking variety that farmers have been used to planting for many years.
In partnership with the Department of Agriculture, Chen Yi Agventures, through its Renucci Rice Processing Center in Alang alang municipality, 24 kilomoters west-southwest of Tacloban City, hopes to develop Leyte into a big rice producer and help improve the lives of the rice farmers here.

The Renucci rice produced by the complex approximates the quality of the more expensive Japanese rice that’s when cooked – either by traditional steaming or by electric rice cooker – exudes the fragrant aroma and gentle, fluffy texture commonly associated with that of freshly harvested rice.

The best part though is that the product was made out of a cleaning-milling-polishing process using the most modern of Japanese rice technology, devoid of any chemicals.
The P1.7-billion company put up by Italian Patrick Renucci and wife Rachel Tan buys freshly harvested palay from farmers at a price higher than those offered by the usual traders. The rice plant initially subjects the tons of palay to a pre-cleaning process to remove grass, stones, stalks and other non-palay grains through a high-pressure segregating activity.

The grains are then brought by tubes and conveyor belts and dried through its computer-controlled drying facilities then cleaned again before these are sent to the milling section to remove the husks and produce the fiber-enriched rice.
These are next subjected to further cleaning and segregation to remove all remaining impurities and by-products (tiki-tiki) before sending all remaining grains to the polishing stage using a combination of heat and pressurized air.
These are next sorted into small, medium and large grains. The last part of the process is the grains cleaning, packing and pouring into 25-kilo sacks or other smaller packaging.

Should there be a surplus of new harvest, the complex stores the grains in its 30-ton capacity silos that are temperature-controlled specifically to maintain the newly harvest freshness of the palay.
At any time of the year, farmers are already assured of a better price for their harvest, even as Chen Yi also provides loans without interest to buy seeds and other farm inputs.
The Tan-Renucci couple used to be investment bankers in Europe yet decided to focus their managerial and financial expertise to help the Philippine government and the agriculture sector develop this approach for effective food security for all, most particularly the rice farmers.

They subscribe to the philosophy that farmers deserve better opportunities for growth including having access to nutritious food, particularly rice they themselves produce.
“And paying the right price for their produce ia surely a step in the right direction,” company officials said.
This early, traditional rice traders feel threatened as Chen Yi’s approach may have long-term effects on their hold on the rice farmers. For one, farmers may now readily sell their fresh palay even with still high moisture content to Chen Yi, which immediately sends its mechanical harvesters to the farms to harvest and thresh the produce in a day’s time.

Before the advent of the Chen Yi technology, farmers had to hire farm hands to harvest the palay for days aside from drying the grains under the sun for days which can get interrupted by sporadic rains.
To compliment the processing complex, Chen Yi also has a fleet of tractors, transplanters, harvesters and trucks. It intends to acquire more to hit its 2,000 hectare-production area target next year.

Siquijor Beach Lot For Sale

Paliton, Siquijor Island

This beach lot has many plus:

  1. clean title
  2. clear access road from the main highway
  3. access to water supply
  4. 40 meters waterfront, west side facing marine sanctuary and Apo Island, rich coral reefs famous divers worldwide
  5. next to a developed  resort already- beside Danish Lagoon Resort-The Boracay of Siquijor

Total lot area:  9,100 square meter  Net of Road Access

PRICE:  Php30Million  Negotiable