The prime state-owned secondary mortgage player, National Home Mortgage Finance Corporation (NHMFC), remitted to the national government its highest ever dividends totaling ₱264 million comprising of dividends for CY2019 net earnings and back dividends for prior years.
This is a 49% increase from last year’s ₱177 million for CY2018.
NHMFC has remitted a total of ₱937 million dividend contributions from 2012 to the present. Additionally, it expects the remaining prior years’ dividends to be paid out next year.
Pursuant to R.A. 7656 known as the “GOCC’s Dividend Law,” GOCC’s are required to declare and remit at least 50% of their annual net earnings as cash, stock, or property dividends to the national government on or before May 15th of each year. However, with the COVID-19 outbreak challenging our country, GOCC’s are requested by the Department of Finance (DOF) to remit their dividends a month earlier in support to the Bayanihan to Heal as One Act.
“Given the current health emergency, our early dividends remittance will help our government in its effort to lighten the economic situations faced by our people most affected by the COVID-19 crisis,” said Department of Human Settlements and Urban Development (DHSUD) Secretary Eduardo Del Rosario, who also chairs the NHMFC Board of Directors.
NHMFC is one of the government’s key shelter agencies under DHSUD.
“We assure you that we at the housing sector are also committed to working with our government in sourcing more funds to battle this pandemic,” he added.
This year, NHMFC’s dividends are paid through the transfer of government securities carried at fair value, in which any under or over remittance of dividends due to market fluctuations shall be reflected as an adjustment to dividends in arrears. This scheme has been approved by DOF.
Moreover, NHMFC continuously proves its strong financial performance as it is also set to pay its highest corporate income tax for CY2019 amounting to Php83,430,349 on June 12, 2020. This amount overshadowed the previous year’s remittance by 119% or equivalent to Php45.38 million.
The corporation also paid its Percentage Tax levied from its gross sales/receipts amounting to Php34,344,165. This again is 160% or equivalent to Php21.13 million higher than its 2018 remittance.
Secretary Del Rosario said that NHMFC is among the GOCCs that steadily contributes to the national treasury through its yearly increasing annual payment of dividends and corporate taxes.###