RMC No. 30-2025 — Circularizing the Implementing Rules and Regulations of RA No. 12001, titled "An Act Instituting Reforms in Real Property Valuation and Assessment in the Philippines, Reorganizing the Bureau of Local Government Finance, Granting Tax Amnesty on Real Property and Special Levies on Real Property, and Appropriating Funds Therefor"
BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE
Bringing In Revenues for Nation-Building National Office Building Quezon City PILIPINAS BAGONG
REVENUE MEMORANDUM CIRCULAR NO._ 0 3 0 " 2 0 2 5
SUBJECT: Circularizing the Implementing Rules and Regulations of Republic Act
No. 12001, entitled "AN ACT INSTITUTING REFORMS IN REAL PROPERTY PHILIPPINES, GOVERNMENT FINANCE, GRANTING TAX AMNESTY ON REAL VALUATION REORGANIZING THE BUREAU OF LOCAL AND ASSESSMENT IN THE
PROPERTY AND SPECIAL LEVIES ON REAL PROPERTY, AND APPROPRIATING FUNDS THEREFOR"
TO: All Internal Revenue Officials, Employees and Others Concerned
concerned, attached as Annex "A" hereof is the copy of the Implementing Rules and REAL PROPERTY, AND APPROPRIATING FUNDS THEREFOR," or otherwise Regulations of Republic Act No. 12001,entitIed "AN ACT INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND ASSESSMENT IN THE PHILIPPINES, REORGANIZING THE BUREAU OF LOCALGOVERNMENT FINANCE, known as the "Real Property Valuation and Assessment Reform Act. GRANTING TAX AMNESTY ON REAL PROPERTY AND SPECIAL LEVIES ON For the information and guidance of all internal revenue officials, employees and others
as wide a publicity as possible. All internal revenue officials and employees are hereby enjoined to give this Circular
ROMI LUMAGUI, JR. Copmissioner of Internal Revenue
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iMPLEMEntIng RULES ANd REgULAtiONS OF rEPUBLIC ACt NO. 12001! ReorgANIZINg tHE BUrEAU oF LOCAL GOVErNMEnt FInAnCE, "An Act iNStitUtIng reForMS In reAl ProPerty VAluAtiOn GRANTING TAX AMNESTY ON REAL PrOPERTY AND SPECIAL LEVIES ON REAL PROPErTY, ANd APProPriAtiNG FuNdS tHEREFor" And assessMent In tHe PhiLipPineS,
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Table of Contents BY B 1 Admin unit- 1 "TIME:_3:00 .
Title i. PreliminAry ProVisions 5
Section 1. Title 5 Section 2. Policy and Objectives 5 Section 3. Purposes 5 Section 4. Definition of Terms 6 titLe II. BureAu oF LocAl gOVernMEnt FiNancE 8
Chapter 1. Bureau of Local Government Finance (BLGF) Central Operations 8
Section 5. Powers and Functions of the BLGF Central Office 8
Service Section 6. Reorganizing the BLGF and Establishment of the Real Property Valuation 9 Section 7. Supervisory Role of the Head of the BLGF over the RPVS 10 Chapter 2-BLGF Regional Office Operations 10
Section 8. Role of the BLGF Regional Offices 10 Title jII. reAl PrOPertY VALUAtion unit in tHE LGu 1
Section 9. Establishment of a Real Property Valuation Unit (RPVU) 11 Title iV. cONSuLtAtiVE coMMIttEES 1
Chapter 1. The Central Consultative Committee 11
and Term of Representatives of the Central Consultative Corimittee Section 10. Creation, Function, Composition, and Qualifications, Nomination, Selection 11 Section 11. Meetings. Rules of Procedure and Resource Persons of the Central Consultative Committee 13 Section 12. Prohibition Against Double Compensation of the Members of the Central Consultative Committee 13 Chapter 2. The Regional Consultative Committee 13
Section 13. Creation, Function, Composition, and Qualifications, Nomination, Selection and Term of Representatives of the Regional Consultative Committee 13
Consultative Committee Section 14. Meetings, Rules of Procedure and Resource Persons of the Regional 15 Section 15. Submission of Reports of the Regional Consultative Committee 15 Section 16. Prohibition Against Double Compensation of Members of the Regionai Consultative Committee 16 TItLE V. VALUAtION StANDARDS AND MARKET VALUES 16
Chapter 1. Development of Valuation Standards 16
Section 17. Development of Valuation Standards 16 Section 18. Users of Valuation Standards 16 Section 19. Periodic Review of Valuation Standards 16 Section 20. Transparency and Accessibility of Valuation Standards 16
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Chapter 2. Valuation of Real Property BY admin unit -: TIME: 3:00 16
Section 21. Market Value-Based Valuation 16 Section 22. Valuation of Depreciable Assets 17 Chapter 3. Preparation of the Schedule of Market Values (SMV) M
Section 23. Notice and Responsibility to Prepare the SMV I 1
Preparation of the SMV Section 24. Compliance with the PVS, Rules, Regulations, and Specifications in Ithe 1 Section 25. Timelines for the Preparation of the SMV 17 Section 26. Publication of the Proposed SMVs 17 Section 27. Public Consultations and Hearings for the Proposed SMV 17 Section 28. Submission of the Proposed SMV 17 Section 29. Period of SMV Review and Endorsement 17 Chapter 4. Review of the Schedule of Market Values 18
Section 30. Review and Certification of the Proposed SMV 18 Section 31. Remand of the Endorsed SMV 18 Section 32. Compliance with the Findings, Public Consultation, and Resubmissian 18 Section 33. Decision on the Resubmitted SMV 18 . -. Section 34. Publication and Effectivity of the SMV " 18 Chapter 5. Revenue and Tax Impact Report 18
Section 35. Transmission of the Approved SMV 18 Section 36. Revenue and Tax Impact Report 18 Section 37. Submission of the Revenue and Tax Impact Report with Recommendations 19 Section 38. Consistency with the Local Government Code of 1991 :19 Chapter 6. Uses of the Schedule of Market Values (SMV) 19
Section 39. Uses of the SMV 1 Section 40. Additional Indicator for the Grant of the Seal of Good Local Governance "'20 Chapter 7. Updating of the Schedule of Market Values (SMV) 20
Section 41. First Updating of the SMV Upon the Effectivity of the Act 20 Section 42. Regular Updating of the SMVs and General Revision of Real Property Values 120 Section 43. Revision of the SMV During its Effectivity Section 44. Suspension of the General Revision of Real Property Values and Assessments 20 2 Chapter 8. Capacity Building Interventions 21
Section 45. Development and Conduct of Capacity"Building Interventions TitLE Vi. deVeLOPMent ANd MAIntEnAnCE OF ReAl PrOPERtY MArKet DatabaSe 22
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22 Chapter 1. Development and Maintenance of the Real Property Information System
Chapter 2. Supply and Transmission of Real Property Transactions Data Section 46. Development of the Real Property Information System (RPIS) 22 23
Section 47. Duty of Register of Deeds to Supply Assessors with Real Property Section 48. Transmission of Real Property Transactions Data to the BLGF Transactions Data 23 23 TItLE VII. APPoINtMENt OF ASSESSORS 24
Section 49. Appointment of Assessors 24 TITLE VIII. PENAL PROVISIONS 24
Section 50. Violations Committed by Government Officials and Employees 24: : Section 51. Uniawful or Unauthorized Processing or Disclosure of Information 24 Section 52. Other Violations of the Act 25 TItLE IX. TrANSitORY PROVISiONS 25
Section 53. Transitory Guidelines 25 Section 54. Basis of the Internal Revenue Taxes 25
Real Property Values and Assessments Section 55. Cap on the Increase of the Real Property Tax Resulting from the Increase in 25 Section 56. Grant of Tax Amnesty'on Real Property Taxes and Special Levies on Real Property 25 Section 57. Saving Clause 26 Title X. Funding reQuirementS 26
Section 58. Budgetary Reguirements for the Updating of SMVs and General Revision of Real Property Values and Assessments 26 Section 59. Appropriations 26 TItLE XI. MISCELLANEOUS PROVISIONS 26
Section 60. Ensuring Gender Equity, Inclusivity, and Faimess 26 Section 61. Reportorial Requirement 2 Section 62. Suppletory Application of Existing laws 27 Section 63. Computation of Periods Section 64. Separability Ciause 1s 2 Section 65. Repealing Clause 27 Section 66. Effectivity 28
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This Impiementing Rules and Regulations, hereinafter referred to as the IRR, is
the Act), for the purpose of carrying out the provisions of said Act. promulgated pursuant to Section 36 of Republic Act (R.A.) No. 12001, otherwise known as the "Real Property Valuation and Assessment Reform Act" (RPVARA) or
Title i. PreLiMinArY ProVIsions
Section 1. Title. These rules shall be known as the "Implementing Rules and Regulations of R.A. No. 12001," and cited as the IRR of the RPVARA.
H' nationally consistent rea! property valuation, based on international valuation standards, concepts, principles, and practices. Section 2. Policy and Objectives. It is the policy of the State to promote jthe sustainable development and maintenance of a just, equitable, impartial, and
Section 3. Purposes. The Act aims to:
a. Establish and maintain standards based on the Philippine Valuation Standards (PVS) to govern the valuation of real property in the country:
b. Adopt market value as the single real property valuation base for the but not fimited to the acquisition of real property for public use, determination of the value of the property; of real property for various transactions by all government agencies, suchi as assessment of real property-related taxes in the country, and for the valuation
c. Promote the fiscal autonomy of Local Government Units (LGUs) to provide tocal revenues from real property: basic services to their constituency by enhancing their capacity to generate
d. Separate the technical function of valuation of real properties from the functions of tax policy formulation and administration of the taxes due thereon;
e. Provide a comprehensive and up-to-date electronic database of all real property transactions;
* f. Support the development of an information database on valuation through contributing to the country's inclusive and sustainable economic growth; continuing research and monitoring of new developments in the discipline to upgrade the country's valuation system and be at par with global standards
g. Subject to the provisions of R.A. No. 10173, otherwise known as the "Data protect public interest, and develop confidence in the valuation system; and Privacy Act of 2012," ensure transparency in real property transactions{to
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1 * Ae ADMIN UNIT-I Time:.2100 h. Promote the use of innovative digital technology in local and real property tax improve the LGUs' revenue generation capacity. administration, real property transactions, and other business processes to
Section 4. Definition of Terms: For the purpose of this IRR, the following terms are defined as such:
(a) Appraiser, also known as Valuer, refers to a person wha conducts valuation: specifically, one who possesses the necessary qualifications, license, ability and experience to execute or direct the valuation of real property:
(b) Assessed value, also known as Taxable Value, refers to the market value of the real property muitiplied by the corresponding assessment level;
(c) Assessment refers to the act or process of determining the value of a listing, classification, and appraisal of properties; property, or proportion thereof subject to taxation, including the discovery,
(d) Assessment Level refers to the percentage applied to the market value to determine the taxable value of the property based on property classifications Code of 1991," as amended: as prescribed in R.A. No. 7160, otherwise known as the "Local Government
(e) Assessor re'ers to the official or employee in the LGU who is a duly licensed Authority (PHiVIDEC-{A); appraiser, and performs appraisal and assessment of real properties; This definition also includes assistant assessor in the LGU and the assessor of the Philippine Veterans Investment Development Corporation-Industrial including plant, machinery, and equipment, for taxation and other purposes.
(f) Automation refers to a seamless process with minimal human intervention
service: and/or without human intervention on the front or back-end process of the
(g) Building refers to a man-made structure permanently attached to land for residential, commercial, industrial, recreational, or other purposes;
(h) Depreciation refers to reasonable allowance for the exhaustion, wear and tear (including reasonable allowance for obsolescence) of property;
(i) Improvement refers to a valuable addition made to a property or an enhance its value, beauty, or utility, or to adapt it for new or further purposes; amelioration in its condition, amounting to more than a mere repair or replacement of parts, involving capital expenditures and labor intended to
(i) International Valuation Standards refer to standards for undertaking determined by the International Valuation Standards Council; that promote transparency and consistency in the valuation practice as vaiuation assessments using generally recognized concepts and principles
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(k) Machinery refers to machines, equipment, mechanicai contrivances
instruments, appliances, or apparatus which may or may not be attached
permanently attached to the real property which are actually, directly, and facilities for production, the installations and appurtenant service facilities, those which are mobile, self-powered or self-propelled, and those hot exclusively used to meet the needs of the particular industry, business, or permanently or temporarily, to the real property. It. includes the physical
activity, and which, by their very nature and purpose, are designed for or necessary to its manufacturing, mining, logging, commercial, industrial,} or agricultural purposes;
(l) Market Value refers to the estimated amount for which a real property shall exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudentiy, and without compulsion;
(m)Philippine Valuation Standards refer to the latest national standards designed and for use in the Philippines, but which are'based upon International Valuation Standards, duly approved by the Secretary of Finance;
(n) Private Appraisal Sector refers to licensed appraisers or valuers not engaged by the government;
(o) Real Estate refers to the land and all those items which are attached to the land. It is the physical, tangible entity. together with all the additionsjor improvements on, above or below the ground;
(p) Real Estate Sector refers to duly accredited or registered organization[or association of real estate developers and real estate consultants;
(q) Real Property refers to all the rights, interests, and benefits related to the ownership of real estate;
(r) Schedule of Market Values, hereinafter referred to as SMV, refers to a tabie purposes by applying the prescribed assessment level based on its actual of base unit market value for all kinds of real property, except machinery within an LGU, prepared by assessors pursuant to existing laws, rules, and appraised at its current market value, and shall be assessed for taxation use; reguiations. For real property not specified in the SMV, the same shall be
(s) Special Purpose Property refers to a property that is designed, constructed types of development or application not economically feasible; and and developed for a specific use or purpose. By its very nature, this typejof property is rarely offered for sale in the open market except as part of a goihg concern since its speciai design and function renders conversion to other
(t) Valuation, also known as Appraisal, refers to the systematic, analytic, and Iogicai analysis of the recording of property facts, circumstances, investments.
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and other relevant data resulting in a supportable estimate or professional opinion of the value of the property as of a specific date and for a specific purpose.
TitLE ii. BureAu OF LocAl.goVernment FInAnce
Chapter 1. Bureau of Local Government Finance (BLGF) Central Operations
Code of 1987." it shall exercise the following powers and functions: Department of Finance (DoF) shall be the primary agency to lead the implementation of the provisions of the Act and this IRR. To support the expanded functions of the BLGF and achieve the policies and objectives declared in the Act and this IRR, the BLGF shall be headed by an Assistant Secretary. In addition to the Section 5. Powers and Functions- of the BLGF Central Office. The BLGF of the powers vested upon it by E.O. No. 292, otherwise known as the "Administrative
a. Develop, adopt, and maintain the PVS, regulations, and specifications for real compliance therewith by LGUs and other concerned parties; properfy appraisal used for taxation and other purposes, and ensure
b. Review and ensure that the SMVs, as prepared by the assessors, are compliant with the PVS and real property valuation policies and standards promulgated by the DOF, and recommend its certification to the Secretary of Finance for local and national taxation, and for other purposes;
c. Interpret and decide, through advisory opinions and clarificatory issuances, on matters relating to real property valuation policies and standards issued by the DOF and the BLGF and implementation of SMVs;
d. Provide technical assistance on real property appraisal matters to government agencies _and instrumentalities, and coordinate or conduct valuation, when requested:
e. Provide leadership and policy direction to LGUs on real property valuation for taxation and other purposes, the regulation of valuation activities and other related matters, and the promotion of valuation trainings and seminars;
f. Maintain a roster of licensed local government appraisers and assessors in consultation and coordination with the Professional Regulation Commission (PRC);
g. Develop and maintain a comprehensive and up-to-date electronic database of real property transactions and prices of materials for buildings, machinery, and other structures;
h. Conduct continuing study and research on valuation, and gather information on current global and country trends and developments in real property valuation;
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Formulate and provide for uniform procedures on the different transactions in the assessor's office, including the transfer, annotation, and issuance of tax declarations;
I Exercise technical supervision over all assessors through a system of
compliance reporting and capacity building, and education and training procedures;
k. Determine, fix, and collect a reasonable amount to be charged} as administration fees, fines, and penalties relative to the implementation ofithe shall be imposed on LGUs with respect to the use'of the RPIS; and Real Property Information System (RPIS): Provided, That no fees or fines
I Perform such other functions as are necessary, proper, and incidental to
implement the provisions of the Act.
Valuation Service. Section 6. Reorganizing the BLGF and Establishment of the 'Real Property
Service, hereinafter referred to as the RPVS, is hereby established. 6.1 To support the expanded functions of the BLGF, the Real Property Valuation
counterpart personnel in the BLGF Regional Offices. The organizational structure and staffing pattern of the RPVS at the BLGF Central Office and the counterpart thereof in the BLGF Regional Offices shall be subject to the evaluation and approval of the Department of Budget and Management (DBM) in accordance with civil service laws, rules and regulations. There shall be creation of' positions of RPVSr.in the BLGF Central Office and
implementation of real property valuation activities-at the regional level. The creation of counterpart personnel in the BLGF Regional Offices is} to complement the functions enumerated in this IRR, for the effective coordinatior and
regulations. shall be submitted to the DBM within six (6) months from the effectivity of this IRR. for its evaluation and approval in accordance with civil service laws, rules, and The proposed organizational structure and staffing pattern of the reorganized BLGF
6.2 The RPVS shall exercise the following functions:
a. Develop and maintain the PVS, regulations, and specifications for real property appraisal used for taxation and other purposes, and ensure compliance therewith by the LGUs and other concerned parties;
b. Assist in the formulation of policies and conduct planning on reai property valuation and other related subject matters;: c. Provide technical assistance to LGUs anai., capacity building intervention for local government personnel in the area of real property valuation;
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d. Conduct monitoring, evaluation, and review on the submitted SMVs from LGUs to ensure accuracy and adherence to the PVS, real property valuation policies, standards, and regulations;
e. lmplement the RPis or any other system that may be developed in accordance with Section 22 of the Act, in coordination with the Department of Information and Communications Technology (DiCT);
f. Develop a network with government and private appraisal groups;
g. Develop and maintain a listing of Jicensed and registered local government Board of Real Estate Service (PRC-PRBRES): and. : appraisers and assessors, in consultation with the Professional Regulatory
h. Perform such other functions as may be assigned by the Head of the BLGF.
Section 7. Supervisory Role of the Head of the BLGF over the RPVs. The Head of the BLGF shall be responsible for the efficient and effective day-to-day overall internal management and governance of the RPVS. performance of the responsibilities set forth in the Act and this IRR, and for the
functions, and responsibilities of the RPVs, its internal management 'and the assessors as provided for under Sections 23 to 29 of this IRR, and the updating of manuals and guidebooks for valuation. guidelines for the operations of the RPVS, including, but not limited to, the duties, governance, procedures for the periodic review of the PVS as provided for under Section 19 of this iRR, procedures for supervision over LGU real property assessment matters, review and endorsement of the propased SMVs prepared by The Head of the BLGF, in coordination with relevant stakeholders, shall issue
Chapter 2. BLGF Regional Office Operations
their existing functions, they shall: Director, the BLGF Regional Offices shall be responsible for all matters relating to Section 8. Role of the BLGF Regional Offices. Through their respective Regional valuation and the supervision of the SMVs in their respective regions. In addition to
a. Implement policies, plans, programs, rules, and regulations on real property valuation in the region; I
b. Review and endorse to ther RPVS the proposed SMVs prepared by the assessors of the LGUs in the region;
c. Provide for economical, efficient, and effective valuation services, through technicai assistance, in the region;
d. Coordinate and consult with other government departments, bureaus and agencies within the region dealing with real property valuation:
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e. Adopt and maintain a comprehensive and up-to-date electronic database of all regional real property-related transactions, and have custody of all transaction records submitted by local government assessors; and
f. Perform such other functions as may be assigned by the Head of the BLGr.
Title iI. reAl ProPertY VALuAtion unit in tHe Lgu
policies and objectives declared in the Act, a Real Property Valuation Unit (RPVU) and the lone municipality in Metropolitan Maniia, within two (2) years from the effectivity of this IRR. Component municipalities of provinces may also create RPVU accordance with the guidelines prescribed by the Civil Service Commission (CsC). Section 9. Establishment of a Real Property Valuation Unit. To achieve ithe shall be created under the Office of the Local Assessor in every province and city under the office of their respective local assessots. The RPVU shall be created in
included in the annual budget of the Office of the Local Assessor duly approved by the Sanggunian concerned. The funding for the organizational structure and staffing patterm of the RPVU shall be
TitLE IV. CONSuLtAtIVE CoMMIttEES
Chapter 1. The Central Consultative Committee
Section 10. Creation, Function, Composition, and Qualifications, Nomination, Selection and Term of Representatives of the Central Consultative Committee.
adoption of International Valuation Standards customized under the Philippine setting and other concerns on real property valuation, such as standardization of 10.1 Creation and Function. A Central Consultative Committee shall be created and shall serve as the consultative forum on matters pertaining to the setting and concepts and definitions of real property-related terms.
under Section 13.1 (Creation and Function of the -Regional Consultative Committee) for the National Capital Region and shall serve as the forum on matters provide for The Central Consultative Committee shall act as the regional consultative committee of this IRR.
the following agencies, organizations and sectors: Head of the BLGF and composed of a representative or an alternate from each of 10.2 Composition. The Central Consultative Committee shall be chaired by the
a. Bureau of internal Revenue (BIR);
b. Department of Environment and Natural Resources (DENR);
c. Bangko Sentral ng Pilipinas (BSP);
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d. National Organization of Government Assessors; BY ADMIN UNIT "TIME: 3:0D wo
e. Union of Local Authorities of the Philippines (ULAP):
f. Land Registration Authority (LRA):
g. Private appraisal sector; and
h. Real estate sector.
shall have the following qualifications: 10.3 Qualifications. The representatives to the Central Consultative Committee
a. The representative fron the private appraisal sector and real estate sector
must have heen in the active practice .as a real estate appraiser for at least five (5) years prior to his or her appointment as member of the Central Consultative Committee, as certified to by the PRBRES.
recognition or birth of the AlPO. the Interim Accredited Professional Organization prior to and until the Accredited and Integrated Professional Organization (AIPO) as referred to under Section 34, Article iV of R.A. No. 9646, otherwise known as the "Real Estate Service Act of the Philippines." Otherwise,he or she shall come from The representative from the private appraisal sector shall come from the
b. The representatives of the BIR, DENR, and BSP must be performing their organization or agency. valuation-related functions, and duly authorized and certified by the head of
* c. The national organization of government assessors, the private appraisal heads of organizations or their duly authorized and qualified representatives. sector, and the real estate sector shall be represented by their respective
groups or associations duly registered and in good standing with the Securities and Exchange Commission (SEC), after the receipt of notice from the BLGF Central Office. 10.4 Nomination and Selection. The representatives of the national organization of government assessors, the private appraisal sector, and the real estate sector shall be selected by the Head of the BLGF from a list of nominees submitted by the
names for each sector to the Head of the BLGF for consideration based on nominations received from the respective sectors: Provided, further, That the BLGF shall promulgate ruies and guidelines for the selection and approval of sectora! The withdrawal of the appointment of the representative shall be submitted in writing to the BLGF Central Office: Provided. That the RPVS shall recommend three (3)
representatives. T
10.5 Term. The representative shaill serve for a term of three (3) years. In case of death. permanent disability, resignation, voluntary separation from the group or association, or withdrawal of representation by the group or association they
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be for the unexpired term of the predecessor. represent, selection to any vacancy in the Central Consultative Committee shall only
Section 11. Meetings, Rules of Procedure and Resource Persons of the Central Consultative Committee.
:online, or hybrid, upon the call of the Chairperson, and with due notice to!the members or representatives, at least once every semester and shall have as many the scheduled meeting. meetings as the Chairperson may deem necessary for the adoption of valuatian standards: Provided, That the notice shall be made at least fifteen (15) days before 11.1 Meetings. The Central Consultative Committee shall meet, either in-person.
The BLGF-RPVS shall serve as the Secretariat of the Central Consultative Committee.
to the principle of collegiality and ensure a consultative, democratic, and transparent the meeting protocols, mechanisms, as well as, other procedures necessary to carry 11.2 Rules of Procedure. The BLGF shall adopt rules of procedure that provides out the function of the Central Consultative Committee. The rules shall strictly adhere proceedings. Such rules shall also include the conduct of members during meetihgs or sessions.
concerning real property valuation. The Centrai Consultative Committee shall ensure that there will be equal opportunity for the participation of public and private sector representatives as Resource Persons. 11.3 Resource Persons. The Chairperson may invite Resource Persons on issues
existing laws, rules, regulations, and other issuances. Centrai Consultative Committee. The Chairperson and Members of the Ceritral additional salary from the government for the performance of their functions in the Committee: Provided, That they shall be entitled to receive per diem from the BLGF pursuant to existing iaws, rules, regulations, and other issuances: Provided, further. That sectoral Representatives shall receive per diem from the BLGF pursuant to Section 12. Prohibition Against Double Compensation of the Members of the Consultative Committee who are government officials or employees shall not receive
Chapter 2. The Regional Consultative Committee
Section 13. Creation, Function, Composition, and Qualifications, Nomination, Committee. Selection and Term of Representatives of the Regional Consultative
which shall serve as the forum in the region for discussion on the following matters: 13.1 Creation and Function. A Regional Consultative Committee shall be created
a. Developments in the local real property market;
b. Concerns of taxpayers, civil society, and other stakeholders;
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d. Data on complaints and appeals filed before the Local Board of Assessment Appeals or the Central Board of Assessment Appeals, as the case may be:
e. Training of local government assessors in the region;
f. Appraisal and assessment concerns in general; and
g. Other matters as may be determined by the Committee
BLGF Regionai Director and shali be composed of: 13.2 Composition. The Regional Consultative Committee shall be chaired by the
a. Head/s of the BIR Regional Office or duly authorized representative/s;
b. Head of the DENR Regional Office or duly authorized representative;
c. Head of the respective regional organization of government assessors or duly authorized representative;
d. Head of the private appraisal sector within the region or duly authorized representative:
e. Head of the real estate sector, licensed by the PRCawithin the region or duly authorized representative:
f. Head of the bankers' association within the region or duly authorized representative;
g. Head of the regional chapier of the league of cities or duly authorized representative; and
h. Head of the regional chapter of the league of provinces or duly authorized representative.
shall have the following qualifications: 13.3 Qualifications. The Representatives to the Regionai Consultative Committee
a. Representatives who will attend on behalf of the respective heads shall be duly qualified and authorized by their organizations.
b. Representatives of the BIR and the DENR must be performing valuation-related functions, in their respective agencies or sectors.
c. Preferabiy, the other members of the Committee must be performing valuation-related functions in their respective agencies or sectors.
13.4 Nomination and Selection. The representatives of the regional organizations of government assessors, shall be selected by the BLGF Regional Director from a
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The representatives of the private appraisal and reai estate sector shall be selected by the Head of the BLGF from a list of nominees submitted by the Professional Regulatory Board af Real Estate Service (PBRES).
selection and approval of sectoral representatives. to the BLGF Regional Office concerned: Provided, That the RPVS counterpart shall consideration based on nominations received from the respective sectors: Provided, further, That the BLGF Central Office shall promulgate rules and guidelines forithe The withdrawal of the appointment of the representative shall be submitted in writing recommend three (3) names for each sector to the BLGF Regionai Director for
shall serve for a term of three (3) years. In case of death, permanent disability, resignation, voluntary separation from the group or association, or withdrawal of shall be only for the unexpired term of the predecessor. representation by the group or association they represent, selection to any vacancy 13.5 Term. The representatives from the private appraisal and real estate sector
Section 14. Meetings, Rules of Procedure and Resource Persons of Ithe Regional Consultative Committee.
scheduled meeting. 14.1 Meetings. The Regional Consultative Committee shall meet, either in-person. Provided, That the notice shall be made at least fifteen (15) days before 'the online, or hybrid, upon the call of the BLGF Regional Director, and with due notice to the Members, at least once every quarter and shall have as many -meetings as the BLGF Regional Director may deem necessary for the performance of its functions:
The BLGF Regional Office RPVS counterpart shall serve as the Secretariat of their respective Regional Consultative Committee.
S
that provide for the meeting protocols, mechanisms, as well as, other procedures necessary to carry out the function of the Regional Consultative Committee. The rules shall strictly adhere to the principle of collegiality and ensure a consultative. democratic, and transparent proceedings. Such rules shall aiso include the conduct of Members during meetings or sessions. 14.2 Rules of Procedure. The BLGF Regional Office shall adopt rules of procedure
14.3 Resource Persons. The BLGF Regionai Director may invite Resource Persons on issues concerning real property valuation. The Regional Consultative Committee shall ensure that there will be equal opportunity for the participation of public and private sector representatives as Resource Persons.
Consuitative Committee, either electronically or manually, within seven (7) days from Section 15. Submission of Reports of the Regional Consultative Committee Any report of the Regional Consultative Committee shall be submitted to the Central approval thereof.
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Regional Consuitative Committee. The Chairperson and Members of the Regional existing laws, rules, regulations, and other issuances. Section 16. Prohibition Against Doubie Compensation of Members of the Consultative Committee who are government officials or employees shall not receive additional salary from the government for the performance of their functions in the pursuant to existing laws, rules, regulations, and other issuances: Provided, further That sectoral Representatives shall receive per diem from the BLGF, pursuant to Committee: Provided, That they shall be entitled to receive per diem from the BLGF
TItLE V. VALUAtION STANDARDS AND MARKEt VALUES
Chapter 1. Development of Valuation Standards
** Section 17. Development of Valuation Standards. The BLGF shall develop, adopt.
stakeholders. The standards shall detail the methodologies for valuing different types be customized under Philippine setting under the PVS. The standards shall include boundaries, ensuring uniform application and adherence to the principles of fairness and transparency. maintain, and implement uniform valuation standards for real property, which shall be known as the PVS. In the development of these standards, the Central Consultative Committee and the Regional Consultative Committees shall consult with of rea! property to ensure conformity with International Valuation Standards as may guidance on their implementation across all LGUs, that is, as regard transcending
other real properties for taxation and other purposes. Section 18. Users of Valuation Standards. The PVS shall be used by all appraisers and assessors in the LGUs, and other persons, entities, or agencies that conduct valuation in the appraisal or valuation of lands, buildings, machinery, and
RPVS, shall review the PVS every three (3) years or as often as may be necessary to ensure that the same is aligned with globally accepted principles and definitions in real property valuation with due consideration of the prevailing economic conditions. stakeholders. Consultative Committees shall disseminate and incorporate relevant feedback from Section 19. Periodic Review of Valuation Standards. The BLGF, through the During such review, the Central Consultative Committee and the Regional
accessible to the public through the BLGF website. Section 20. Transparency and Accessibility of Valuation Standards. To ensure. transparency, upon finalization or revision, the PVS shall be published and made
Chapter 2. Valuation of Real Property
Section 21. Market Value-Based Valuation. For valuation purposes, all real with the PVS adopted pursuant to the Act and this IRR. properties, whether taxable or exempt, shall be valued or appraised based on prevailing Market Values in the locality where the property is situated, in conformity
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be taken into consideration in the valuation of depreciable assets in accordance with the PVS. Section 22. Valuation of Depreciable Assets. In all instances, depreciation shall
Chapter 3. Preparation of the Schedule of Market Values (SMV)
all assessors to prepare and submit their proposed SMVs. Section 23. Notice and Responsibitity to Prepare the SMV. The BLGF shall notify
in the Preparation of the SMV. The proposed SMVs shall be compliant with the PVS and such other rules, regulations, and specifications as may be set by the Secretary of Finance. Section 24. Compliance with the PVS, Rules, Regulations, and Specifications
.SMV, including the publication and public consultations pursuant to Sections 26 and Section 25. Timelines for the Preparation of'the SMV. The preparation of the 27:ot this iRR, shall be completed within twelve (12) months following the receipt by the assessors of the notice from the BLGF to submit their proposed SMVs.
Section 26. Publication of the Proposed SMVs. All assessors shall publish the proposed SMVs for at least two (2) weeks prior to the public consultation and hearing, in the official website of the LGU concerned and the PHIVIDEC-IA, as well as, post the same in two (2) conspicuous places in the Provincial Capitol, City Hall, Municipal Hall, or principal office of the PHIVIDEC-IA, as the case may be.
in-person, online, or hybrid, within sixty (60) days before the submission of the conduct of the public consultations. The assessors shali keep the records of'the proposed SMV for reference. two (2) mandatory public consultations and hearing shall be conducted, either consultations, completion, and submission, including copies of the submitted Section 27. Public Consultations and Hearing for the Proposed SMV. At least proposed SMV to the BLGF. The LGU may request a representative of the BLGF Central or Regional Office to and assist the LGU and the PHiVIDEC-IA in 'the
same to the BLGF Regional Office in the case of the regions outside Metro Manila Area. In the case of the cities and the lone municipality in the NCR, their proposed SMVs shall be directly submitted to the BLGF Centra! Office. Section 28. Submission of the Proposed SMV. After public consultations and completion of the proposed SMVs, the provincial and city assessors shall submitithe
thirty (30) days from receipt thereof. Section 29. Period of SMV Review and Endorsement. Within forty-five (45) days from receipt of the proposed SMVs, the BLGF Regional Office shall review and endorse the same to the Head of the BLGF. In the case of the cities and the lone municipality in the NCR, their proposed SMVs shall be directly reviewed by the BLGF Central Office. The Head of the BLGF through the RPVS shall review 'the proposed SMVs submitted and endorse the same to the Secretary of Finance within
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Chapter 4. Review of the Schedule of Market Values ADMIN UNIT - TIME: 3a
thereof. prepared in accordance with the latest PVS within thirty (30) days from the receipt Section 3o. Review and Certification of the Proposed SMV. The Secretary of Finance shall certify that the proposed SMV submitted by the Head of the BLGF was
In the absence of action by the Secretary of Finance within the specified period of thirty (30) days, the existing SMV shall remain in effect until a new SMV is certified in accordance with the provisions of the Act and this lRR.
in accordance with the latest standards set in the PVS, the Secretary of Finance that was/were not complied with, and the assessor shall revise the same accordingly. Section 31. Remand of the Endorsed SMV. If the endorsed SMV was not prepared shall remand or send back the endorsed SMV to the assessor, as the case may be, specifying and explaining in writing the specific valuation standard/s under the PVs Secretary of Finance shall not exercise control over the content of the SMV. The remand of the proposed SMV shall be coursed through the BLGF Central Office and the BLGF Regional Offices concerned, if applicable: Provided, further, That the
and after the conduct of at least one (1) public consultation as may be necessary Resubmission. Upon compliance with the findings of the Secretary of Finance, the Section 32. Compliance with the Findings, Public Consultation, and. proposed SMV shall be resubmitted by the local assessor or the assessor of the PHIVIDEC-IA to the BLGF Central Office through the concerned BLGF RegionaI Office, if applicable, within thirty (30) days from the receipt of the remanded SMV
the existing SMV shall remain in effect. Section 33. Decision on the Resubmitted SMV. The Secretary of Finance shall decide on the resubmitted SMV within ten (10) days from receipt thereof, otherwise.
principal office of the PHIVIDEC-IA, as the case maybe. Section 34. Publication and Effectivity of the SMV. The certified SMV shall take effect fifteen (15) days after its publication by the DOF in the Official Gazette or in its municipality of the Metro Manila or the PHIVIDEC-IA, and posted in two (2) other official website, and in the official website of the province, city, or the lone conspicuous public places in the Provincial Capitol, City Hall, Municipal Hall, or
Chapter 5. Revenue and Tax Impact Report
the assessor of the PHIVIDEC-IA, copy furnished the BLGF Regional Office Section 35. Transmission of the Approved SMV. The certified SMV shall be officially and directly transmitted by the BLGF Central Office to the concerned local chief executive, and the Sanggunian, through their respective Iocal assessots and concerned.
adjusting the existing assessment levels and tax rates, for consideration of the Section 36. Revenue and Tax Imbact Report. The concerned local assessor, in coordination with the local treasurer shall prepare a report on the revenue and tax impact of the new SMV on taxpayers including three (3) different proposed options in
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Secretary of Finance. Sanggunian, in accordance with the rules and regulations promulgated by Ithe
the-case may be, within thirty (30) days from receipt of the new SMV . The Revehue and Tax impact Report shall contain the revenue estimation from the new SMV and ascertainment of the impact on taxpayers, with three (3) proposed options on :the Section 37. Submission of the Revenue and Tax impact Report with the Revenue and Tax Impact Report to the ilocal chief executive and to the adjustment of the assessment levels and tax rates adopted in the existing ordinance. Recommendations. The concerned assessor and the iocal treasurer shall submit Sangguniang Panlalawigan, Sangguniang Panlungsod, or Sangguniang Bayan, as
Act, this IRR shali not be construed to undermine the power of LGUs to set and Section 38. Consistency with R.A. No. 7160. Except as otherwise provided in the adjust the assessment levels and tax rates, in accordance with the provisions of R.A .No. 7160, or the Locai Government Code of 1991, as amended.
Chapter 6. Uses of the Schedule of Market Values (SMVs)
Section 39. Uses of the SMVs. The approved SMVs shall be used, as follows:
39.1 For taxation purposes:
a. As basis for the general revision of the assessment and property ciassification by the local assessor, and in the determination and adjustment of ithe Sanggunian; assessment levels and tax rates to be adopted by the LGU through 'the
b. As basis in determining the Market Value for other real property-related taxes Gravel, Community Tax, and other fees and"charges; such as Tax on Transfer of Real Property Ownership, Tax on Sand and
c. The Commissioner of .Internal Revenue shall use the SMV or the actual gross selling price in consideration, as stated in real praperty transaction documents, whichever is higher, in computing any internal revenue tax.
39.2 For other purposes:
a. As benchmark for the appraisal of real property and other related purposes of mortgage to secure the performance of obligations, among others; and disposition, land development for housing, township and infrastructure, and all government agencies or instrumentalities, and Government-Owned or -Controlled Corporations (GOCCs), such as for purposes of public land
b. As benchmark for the appraisal of real property and other related purposes of all government agencies or instrumentalities, and GOcCs. such as ffor compensation in expropriation proceedings under existing laws. purposes of letter-offer in negotiated sale and the payment of just
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additional indicator under the criteria of good fiscal or financiai administration or financial sustainability under Section 7(a) of R.A. No. 11292, otherwise known as. Section 40. Additional Indicator for the Grant of the Seal of Good Local Governance. Compliance with the Act and this lRR shall be considered as an "The Seal of Good Local Governance Act of 2019."
Chapter 7. Updating of ttie Schedule of Market Values (SMV)
assessor of the PHIVIDEC-iA, shail update their respective SMVs within tWo (2) Section 41. Updating of the SMV Upon the Effectivity of the Act. All provincial assessors, together with the municipal assessors and the city assessors, including the assessor of the lone municipality within the Metropolitan Maniia Area and the years from the date of effectivity of the Act or not iater than July 5, 2026.
jurisdiction of the LGUs and the PHIVIDEC-IA, and shall provide guidelines for the SMV updating within the aforementioned two (2)-year period in order to ensure consistency in the use and application of the valuation standards. The BLGF shall prepare the schedule of activities within sixty (60) days from the effectivity,of this IRR for the updating of the SMVs in all areas within the territorial
adopting SMV as basis for the general revision of real property values and assessment, and classification of real properties shall be deemed automatically amended without prejudice to the -enactment of an ordinance by the Sanggunian adjusting the assessment levels, tax rates, and such other matters pertaining to the administration of real property tax. Upon effectivity of the new SMV as certified by the Secretary of Finance, ordinances
real property every three (3) years thereafter. The BLGF shall prepare the schedule for the updating of the SMVs in all areas under the territorial jurisdiction of the LGUs and the PHIVIDEC-IA. Area, and the PHIVIDEC-IA shall undertake the updating of their SMVs and conduct the general revision of real property values and assessments, and classifications of Section 42. Regular Updating of the SMVs and General Revision of Real Property Vaiues. After the first updating of the SMV upon the effectivity of the.Act and this IRR, all provinces, cities, and the lone municipality in Metropolitan Manila
Upon certification of the regularly updated SMV, an ordinance shall be enacted by the Sangguniang Panlalawigan in the case of the province, the Sangguniang Panlungsod in the case of the city, or the Sangguniang Bayan in the case of the lone municipality in the NCR, for the conduct of general revision of real property values and assessments, and classification of real properties. An ordinance may also be concerned will deem appropriate. enacted for the purpose of adjusting the assessment levels, tax rates, and such other matters pertaining to the administration of real property tax, as the Sanggunian
Section 43. Revision of the SMV During its Effectivity. Notwithstanding the effectivity of the SMV, the provincial assessor, city assessor, or the municipal the revision thereof under the following circumstances: assessor of the Ione municipality in the Metropolitan Manila Area, shall recommend
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43.1 In cases of any significant change in the Market Values where the property is about by the following: Iocated after the SMV has been approved and prior to the next revision, brought
a. Introduction of road right of way or similar infrastructure; :
b. In times of calamities or disasters, whether man-made or natural;
C. During a pandemic or declared public health emergency, whether national
or local;
d. Other analogous adverse circumstances.
43.2 Where a correction of errors and inegualities in the SMV is deemed necessary.
Area. Such revision of the existing SMV due to any of the foregoing circumstances shail be recommended by the provincial assessor, city assessor, or the municipal assessor of the lone municipality within Metropolitan Manila Area, or the assessor of thel PHIVIDEC-IA, as the case may be, to the BLGF RegionaI Office through the BLGF Regional Director for LGUs outside the Metropolitan Manila Area and the PHIViDEC-IA, and to the BLGF Central Office for LGUs within Metropolitan Manila
Offices, which shall submit their recommendations to the Head of the BLGF, in accordance with Sections 14 and 15 of the ACT. Such revision of the SMV shall be subject to the review by the BLGF Regional
by the local chief executive. the conduct of general revision of real property values and assessments, in times of national emergency declared by the President or a local state of calamity declared Assessments. The provincial assessor, city assessor, or municipal assessor of the Ione municipality within Metropolitan Manila Area, as the case may be, may suspend Section 44. Suspension of the General Revision of Real Property Values and
declaration of national emergency has been lifted by the President. In the case of a Secretary of Finance for a period of another thirty (30) days or during the continued existence of the calamity, whichever is shorter. In the case of a national state of emergency, the suspension shall take effect until the local state of calamity, the suspension shall be for a period of thirty (30) days from the declaration by the local chief executive of the local state of calamity. However, if the local state of calamity continues to exist after the expiration of the thirty (30) day-period of suspension, the BLGF may recommend for further extension to the
Chapter 8. Capacity Building Interventions
the necessary trainings for all local assessors, local officials and staff, and other Section 45. Development and Conduct of Capacity Building Interventions. The BLGF shall, in coordination with the Philippine Tax Academy created under R.A. No. 10143, or "An Act Establishing the Philippine Tax: Academy," develop and conduct
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concerned personnel which will cover areas related to real property valuation, as follows:
a. Preparation of the SMV in accordance with the PVS and international Valuation Standards, concepts, principles and practices: standards and as set forth by the Internationai Valuation Standards Council, among others; defined in relevant laws and regulations; technigues for data collection and analysis used in valuation; understanding the factors that affect SMVs; and maintaining consistency and accuracy in SMVs across different Iocalities, adhering to international valuation standards; methods of real property valuation based on International Valuation Standards types of properiy valuation (e.g., market value and assessed value) as
b. Conduct of impact studies, including the preparation of the revenue and tax impact report; concepts and methodologies for conducting real property property valuation; valuation; and the potential economic and social impact of changes in real
c. Preparation of compliance reports; preparation of reports on real property valuation activities for submission to relevant agencies; ensuring compliance with reporting requirements mandated by the Act, this IRR, and other related
laws; and
d. Other relevant subject areas, including, but not limited to, specific valuation technological advancements in the field of real property valuation. dispute resolution processes related to real property valuation; and methodologies for different property types (e.g., land, buildings, machinery);
TITLE VI. DEVELOPMENT AND MAINtENANCE OF real Property Market dataBase
Chapter 1. Development and Maintenance of the Real Property Information System
exchange, lease, mortgage, donation, transfer and..all other real property... transactions and declarations in the country and on the cost of construction or renovation of buildings and other structure, and on prices of plant, machinery, and eguipment. Section 46. Development of the Real Property Information System (RPIS). The BLGF shall develop and maintain an up-to-date electronic database of the sale.
3
For this purpose, the BLGF shall require the mandatory submission of necessary particularly Sections 20 and 21 thereof, and other existing laws. The updated Internal Revenue or their duly authorized representative subject to the provisions of documents from the concerned officials or employees of national government offices or instrumentalities, and LGUs: Provided, That the mandatory submission of documents and information shall be subject to the prohibition of disclosure, and security of certain information under RA No. 10173, or the "Data Privacy Act,' database shall be made available at no cost to all LGUs, and other national government agencies, without need of prior approval, including the Commissioner of
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ADMIN UNIT TIME 3c Section 270 of R.A. No. 8424, otherwise known as the "Nationai Internal Revenue Code of 1997," as amended, and Sections 12 and 13 of R.A. No. 10173: Provided, BLGF will subject the concerned official or employee to administrative penalties pursuant to the provisions of Section 26 of the Act. further, That the private sector may access the database subject to the guidelines of the BLGF: Provided, finally That non-submission of the required documents toi the
documents in accordance with the provisions of Chapter 2, Article III of the Act. The BLGF shall establish mechanisms for the electronic submission of the required
maintain software-enabled valuation systems, undertake regular data cleansing, and interoperable information and communications technology.platform, including their programs to all LGUs. The DiCT shall prioritize provinces, cities or municipalities computerized records management, with the guidance of the BLGF, in coordination with the Department of Information and Communications Technology (DICT). The corresponding maintenance, and the appropriate training and capability building belonging to third and lower income class LGUs that do not have an existing information communication technology platform in place, ta ensure compliance with this section. The BLGF, together with DICT, shall ensure the full automation by all LGUs of their real property systems within two (2) years from the effectivity of'the Act. All provinces, cities, and municipalities shall automate their real property tax administration operations such as, but not limited to, tax mapping technology DICT shall provide, free of charge, the appropriate equipment, connectivity and
Chapter 2. Supply and Transmission of Real Property Transactions Data
transfer or alienation accompanied by copies of corresponding deeds of sale, donation, or partition, or other forms of alienation. including the municipal assessor of the Ione municipality in the NcR, and the properties entered therein, their present owners, and the dates of their most recent Section 47. Duty of Register of Deeds to Supply Assessors with Real Property Transactions Data. The Register of Deeds shall prepare and submit to the provincial assessors, together with the municipal assessors, and city assessors, assessor of PHIVIDEC-IA, an abstract of the entire registry every three (3) months and copies of all contracts selling, transferring or otherwise converting, leasing, or mortgaging real property registered every end of the month free from any fees and charges. The abstract shall include brief but sufficient descriptions of the real
with the rules and regulations to be promulgated by the Secretary of Finance. of Deeds, BIR, Notaries Public, officials issuing Building Permits, and the Geodetic free of charge, relevant real property transactions data, every quarter in accordance Section 48. Transmission of Real Property Transactions Data to the BLGF. Upon operationalization of the real property transactions database as provided in Section 22 of the Act and Section 46 of this IRR, it shall be the duty of the Registers Engineers conducting surveys within a locality to electronically transmit to the BLGF.
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TITLE VII. APPOINTMENT OF ASSESSORS admin unit. 3:00
known as the "Real Estate Service Act of the Philippines," rules, regulations. and the following guidelines: Section 49. Appointment of Assessors. Notwithstanding Section 472 of R.A. No. 7160, or the Local Government Code of 1991, as amended, the Iocal chief executive shall appoint the provincial, city, and municipal assessors and assistant assessors, as the case may be, in accordance-with civil service Iaws, R.A. No. 9646, otherwise
a. In the case of provincial and assistant provincial assessors and city and three (3) ranking eligible candidates within the region; assistant city assessors, the appointee shall be chosen from the list of at least
b. In the case of city and assistant city assessors, and the municipal and assistant municipal assessor in the Metropolitan Manila Area, the appointee within the region; and shall be chosen from the list of at least three (3) ranking eligible candidates
c. In the case of municipal and assistant municipal assessors, the appointee shall be chosen from the list of at least three (3) ranking eligible candidates within the province.
TitLE ViIi PENAL PrOVISIONS
Section 50. Violations Committed by Government Officials and Employees. The criminal and administrative penaltiea imposable under existing laws: following vialations shall be punishable by a fine equivalent to one (1) month to six government service for not more than one (1) year, or both, in addition to any (6) months of the officiai or employee's basic salary, or by suspension from
a. Failure of any official or :employee of the BLGF or other concerned government agency, without justifiable reason, to provide or furnish data or information required pursuant to Sections 22, 23, and 24 of the Act:
b. Failure of the assessor or assistant assessor to comply with the valuation valuation of real property; standards developed and adopted pursuant to the Act, or deliberate conceaiment of any deviation or departure from such standards in the
c. Failure or refusal of an assessor, without justifiable reason, to prepare, the period set forth in the Act; and submit, revise, and implement the SMVs, or conduct general revisions, within
d. Failure or refusal of any government official or employee to review, approve, and implement the SMVs, as well as to conduct general revisions within the periad set forth in the Act, or cause the improper use of SMVs.
or use of the RPIS data, including all illegal acts as defined under R.A. No. 10173, or Section 51. Unlawful or Unauthorized Processing or Disclosure of Information. The unauthorized processing, accessing, disposai, disclosure, sharing, publication,
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AOMIN UN! Z*c80 the "Data Privacy Act." shall be punishable in accordance with the aforecited law, its implementing rules and regulations, R.A. No.10175, otherwise known as Ithe "Cybercrime Prevention Act of 2012," and other relevant laws.
who violates any provision of the Act other than those punishable under Sections 26 Section 52. Other Violations of the Act. Any person, whether natural or juridicai.
and 27 thereof shall, when warranted, be dealt with under applicable existing laws.
TiTLE IX. TrANSITOrY PrOVISIONS
shall be undertaken. Such notification and coordination shall include submission of progress report and schedule for the completion of the SMV updating and general their SMVs upon the effectivity of the Act, shall continue with such revision in Title V of this IRR: Provided, That proper notification and coordination with the BLGF revision to the BLGF Central Office or BLGF Regional Offices, as the case may be. Section 53. Transitory Guidelines. LGUs, which are in the process of updating accordance with Sections 15, 16, 17 and 19, of the Act and Chapters 3, 4, and 5,
Section 54. Basis of the Internal Revenue Taxes. In case the SMVs are not yet transaction documents, whichever is the highest, for purposes of computing any of R.A. No. 7160, or the Local Government Code of 1991," shall be observed or available or updated, the Commissioner of Internal Revenue shall adopt the existing SMVs, Zonal Values or the actual price or consideration as stated in the real property internal revenue tax: Provided, That the maximum assessment levels in Section 218
adopted.
ordinance, a cap on the increase in real property taxes for the succeeding years. SMV under the Act: Provided, That the cap shall be applicable to each type of real Levies in real property: Provided, further, That the LGU may impose, by way of:an Section.55. Cap on the Increase of the Real Property Tax Resulting from the Increase in Real Property Values and Assessments. For the first year: af effectivity of the approved SMV in accordance with the Act and this IRR, any increase in real property taxes shall be limited to a maximum of six percent (6%) of the real property taxes assessed on such properties prior to the effectivity of the first property tax, including Special Education Fund, ldle Land Tax, and other Special
on Real Property. There is hereby granted a real property tax amnesty on penalties. surcharges, and interests from all unpaid real property taxes, including the Special Education Fund, Idle Land Tax, and other Special Levy Taxes, that were incurred prior to the effectivity of the Act or on July 5, 2024. Provided, That the real property tax amnesty can only be granted within two (2) years after the effectivity of the Act or until July 5, 2026. Section 56. Grant of Tax Amnesty on Real Property Taxes and Special Levies
tax amnesty in accordance with the Act. issue an ordinance to determine the means and method of payment oniy. In no way shall non-issuance of such an ordinance prevent the implementation of the grant of This relief may be availed of by a delinguent real property owner with the option of one-time payment or installment payment of the delinquent real property taxes within two (2) years from the effectivity of the Act or until July 5, 2026. The LGUs may
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a) Delinquent real properties which have been disposed of at public auction to
satisfy the real property tax delinquencies;
b) Real properties with tax delinquencies which are being paid pursuant to a compromise agreement; and
c) Real properties subject of pending cases in court for real property tax delinquencies.
assessors, and the city assessors, including the municipal assessor of the lone municipality of Metropolitan Manila Area and the assessor of the PHIVIDEC-IA, shall continue to be in force and effect until repealed, superseded, modified, revised, set two (2) years upon the effectivity of the Act: Provided, The PHIVIDEC-IA, pursuant to collect real property taxes on real properties within its jurisdiction. Section 57. Saving Clause. The Zonal Values, as determined by the BIR and approved by the Secretary of Finance for internal revenue tax purposes, and the existing SMVs prepared by the provincial assessors, together with the municipal aside, or replaced by the values provided under the new SMVs as approved by the Secretary of Finance in accordance with Section 16 of the Act, which shall be within Section 4(h) of Presidential Decree No. 538, shall continue to levy, assess, and
TiTLE X. FUNDING REQUIREMENTS
Revision of Real Property Values and Assessments. Each local Sanggunian shall Allotment or such other sources every fiscal year to constitute the Real Property Tax Section 58. Budgetary Requirements for the Updating of sMVs and General appropriate the necessary funds from locally generated revenues, the National Tax
creating the RPTAF. values and assessments, and the administration of real property taxes in all LGUs. Administration Fund (RPTAF), which shall be established and used for the proper implementation of the updating of the SMVs, and general revision of real property Iower income class LGUs in order to augment their resources for purposes of The Secretary of Finance, through the BLGF, shall grant a subsidy to third (3ra) and '
be included in the annual General Appropriations Act and in the respective local budgets of the LGUs concerned. Section 59. Appropriations. The initial amount for the implementation of the Act and this IRR shall be charged against the available funds of the National Government Agencies and LGUs concerned. Thereafter, the necessary funding shall
TiTLE XI. MISCELLANEOUS PrOVISIONS
responsive mechanisms in all aspects of the implementation of the Act and this IRR. LGUs, and agencies concerned herein shall employ gender sensitive and gender Section 6o. Ensuring Gender Equity, inclusivity, and Fairness. The DOF, the
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Congressional Oversight Committee on the Comprehensive Tax Reform Program quarter of every year. Section 61. Reportorial Requirement. The BLGF shail submit to the joint (COCCTRP) created under the National Internal Revenue Code of 1997,} as amended, a detailed report on the implementation of the Act during the first (1st)
Section 62. Suppletory Application of Existing Laws. The provisions of R.A. No. Consistent with the Act shall have suppletory effect. 7160, or the Local 'Government Code of 1991, as amended, and other Jaws
Section 63. Computation of Periods. In computing a period indicated in the Act and this IRR, the provisions of Section 31, Chapter 8, Book 1 of the Executive Order (E.O.) No. 292, known as the "Administrative Code of 1987" shall be followed.
Local Chief Executive, it is .understood that the last day shall be the next working day. If the last day of any period for action by a government entity or for submission to a government entity falls on a Saturday or a 'Sunday, regular holiday, specia! non-working holiday, or other non-working days dufly declared by the President or the
shall cantinue to be in full force and effect. Section 64. Separability Clause. If any section or provision of this IRR shali be declared unconstitutional or invalid, other sections or provisions not affected thereby
Section 65. Repealing Clause. The following provisions are hereby repealed:
a. Sections.199(e), (g), and (o), 212, and 219 of RA No. 7160, otherwise known as the "Local Government Code of 1991";
b. Section 9 of Presidential Decree No. 921, entitled "Providing for the Administration of Local Financial Services in Metropolitan Manila, Creating Local Treasury and Assessment Districts Therein, and for Other Purposes. on the administration of local financial services in Metropolitan Manila and creating Local Treasury and Assessment Districts; and
C Section 6(e) of R.A. No. 8424, otherwise, known as the "National Interrial
Revenue Code of 1997,"as amended.
the provisions of the Act: The following provisions are hereby amended insofar as they are inconsistent with
a. Section 23, Chapter IV, Title i1, Book IV of E.O. No. 292, otherwise known as the "Administrative Code of 1987";
.b."Sections 19, 135(a), 138, 201, 218, 220, and 472(b)(8) of R.A. No. 7160;
C. Sections 5, 6, and 7 of R.A. No. 10752, otherwise known as Right-of-Way Act"; and a The
T
:
d. Sections 24(D), 27(d)(5), and 88(b) of the National internal Revenue Code af 1997, as amended.
are hereby repealed, superseded, or modified accordingly All laws, presidential decrees, executive orders, presidentiai proclamations, rules and reguiations, or parts thereof contrary to or inconsistent with the Act and this IRR
circulation. Section 66. Effectivity. The IRR shall take effect fifteen (15) calendar days after its complete publicatian in the Official Gazette or in any newspaper of general
Approved. DEC 1 3 -2024
Depaltmenyof Finance RALP Segretary
BUREAU OF INTERNAL REVENUE RECORDS MANAGEMENT DVISION TY 1 +4 37
APR 0 7 225
BY ADMIN UNIT. TIME: 3:0d
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