Zonal Value Analysis

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C. Zonal Values Analysis The importance of the zonal valuations as said by the BIR is important for taxation purposes. At the moment, it is only useful for buyers and sellers in computing for real estate taxes when purchasing or selling a property. This is because the BIR has not been able to revise or update the zonal valuation which is why it does not reflect the value of a property in terms of its market prices. Consequently, the actors in the real estate market would refer to the fair market value of a property than the zonal valuation. Even private real estate agents have admitted not to refer to the zonal valuations when pricing a property. In Baguio City, the zonal valuations have been revised twice since it was first presented in February…show more content…
3. Zonal values of condominium unit/townhouse: if the title of a particular condominium unit/townhouse is - a.) A condominium certificate of title (CCT), the zonal value of the land and the improvements shall be treated as one; or b.) A transfer certificate of title (TCT), the land and improvement shall be given separate values, i.e. Zonal value/gross selling price/fair market value per latest tax declaration whichever is higher and, in the absence of zonal valuation, property shall be valued pursuant to RAMO 2-91. The ground floor of the residential condominium shall be classified as commercial and twenty percent (20%) of the established value shall be added thereto. 4. Areas for priority development (APD). These are areas identified as areas for priority development certified to as such by the housing and land use regulatory board (HLRB). If it is utilized for socialized housing, it shall be certified to as such by the proper government agency such as, presidential commission on urban poor (PCUP), national housing authority (NHA), etc. Second sale of lot identified as located in the apd shall no longer be valued as an APD and shall be treated as an ordinary real…show more content…
Zonal value or FMV established in the schedule of values of assessors. The zonal values established herein shall apply in computing all internal revenue taxes (i.e. Capital gains, creditable withholding, estate, donor’s, and documentary stamp taxes) due on sales, exchanges, or other dispositions of real property. Provided, that the same is higher than: (1.) The fair market value as shown in the schedule of values of the provincial and city assessors (i.e. Latest tax declaration) (2.) The gross selling price as shown in the duly notarized document of sale or exchange at the time of sale or exchange. Provided, however, that the value of property to be used in computing estate and donor’s taxes shall be (1) the fair market value as determined by the commissioner of internal revenue (i.e. Zonal values) or (2) the fair market value as shown in the schedule of values of the provincial/city/municipal assessor, whichever is

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