WHEREAS, it
has become necessary to provide a simplified and uniform valuation of
real property for purposes of determining internal revenue taxes;chanroblesvirtualawlibrary
WHEREAS, under Section 91 of the National Internal Revenue Code, the
Real Property Valuation Committee in the Department of Finance is
called upon to prepare and submit to the Secretary of Finance a
schedule of percentage adjustment of the assessed value of real
property in each municipality and city after due notice and hearing for
the purpose of determining the amount of transfer taxes due thereon; and
WHEREAS, in view of the provisions of Commonwealth Act No. 470, as
amended by Presidential Decree No. 76 and further amended by
Presidential Decree No. 261, a general revision of real property
assessments has been undertaken throughout the country;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested under the Constitution, do hereby
decree and order:cralaw:red
Section 1. Section 91 of the National Internal
Revenue Code is hereby amended to read as follows:cralaw:red
"Sec. 91. Determination of value of usufructs,
annuities, and other property. — To determine the value of the right of
usufruct, use of habitation, as well as that of annuity, there shall be
taken into account the probable life of the beneficiary in accordance
with the American Tropical Experience Table calculated at eight per
centum annual interest.
"The estate shall be appraised at its fair market value as of the time
of death, or as of six months thereafter, at the election of the
executor or administrator using for the purpose the current and fair
market value as reflected in the schedules of values prepared by
provincial and city assessors pursuant to Commonwealth Act No. 470, as
amended by Presidential Decrees Nos. 76 and 261, and unless the
contrary is shown by the taxpayers, the schedule shall be binding upon
all concerned for purposes of computing any internal revenue tax based
on the value of the property."
Section 2. The Real Property Valuation Committee
created in the Department of Finance under Section 91 of the National
Internal Revenue Code as amended is hereby abolished.
Section 3. In all cases of transfers subject to tax
made during the existence of the Real Property Valuation Committee for
which no percentage adjustment of the assessed value of the real
property after due notice and hearing have been fixed in accordance
with Section 91 of the National Internal Revenue Code, as amended, the
Commissioner of Internal Revenue shall compute the tax based on the
fair market value as of the time of death, or as of six months
thereafter, at the election of the executor or administrator, unless
the contrary is shown by the taxpayer.
Section 4. The Secretary of Finance shall issue rules
and regulations for the proper implementation of this Decree.
Section 5. Repealing clause. — All laws, acts,
decrees, executive orders, proclamations and/or administrative
regulations, or parts thereof which are contrary to, or inconsistent
herewith, are hereby repealed and/or modified accordingly.
Section 6. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 14th day of August, in the year of Our Lord, nineteen hundred and
seventy-four.
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