SHDA national president Jesus Atencio said that "the submission of Certificate of Registration and License to Sell is enough requirement to comply with the HEREB certification of BIR. This would be consistent with the government’s efforts to simplify procedures, cut bureaucratic red tape and fasttrack government’s delivery of services."
Atencio, who is also the chairman of the Private Sector Consultative Council for Shelter (PCCS), said that, "by virtue of BIR Revenue Regulation 12-94, real estate organizations were authorized to issue HEREB Certificates to its members. The HEREB Certificate allowed its holders to pay Creditable Withholding Tax (CWT) instead of Capital Gains Tax on the sale of real property because the transaction would now be classified as goods in trade and not capital asset".
In 1998, the authority of real estate associations to issue HEREB Certificates was effectively cancelled based on BIR Revenue Regulation 2-98 and Regional Revenue Memorandum Circular 3-2000. These BIR rulings provided that, henceforth, the only HEREB certifications that BIR shall recognize would be the "Proof of Registration" from the Housing and Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB). This is the present practice today.
SHDA chairman Atty. Teofisto L. Guingona III, said that "real estate developers are clearly engaged in the practice of selling real estate. Indeed, among the numerous permits that a developer has to secure in the development and sale of real estate is the Certificate of Registration and License to Sell issued by HLURB. SHDA believes that these permits are sufficient proof that the holder is indeed habitually engaged in the real estate business. It is satisfactory basis for BIR offices nationwide to determine the legitimacy of HEREB. Thus, SHDA maintains that it is unnecessary for developers to secure another HEREB Certificate when the HLURB Certificate of Registration and License to Sell would more than adequately suffice."