PROVIDING FOR A NEW VALUATION OF REAL PROPERTY TO SERVE AS BASIS FOR THE DETERMINATION OF INTERNAL REVENUE TAXES AND AMENDING FOR THE PURPOSE SECTION 91 OF THE NATIONAL INTERNAL REVENUE CODE AS AMENDED BY REPUBLIC ACT NO. 6110 AND FURTHER AMENDED BY PRESIDENTIAL DECREE NO. 69.

• Number: Presidential Decree No. 539
• Sections: 8

Preamble

WHEREAS, it has become necessary to provide a simplified and

uniform valuation of real property for purposes of determining

internal revenue taxes;

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;

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:

Section 1

SEC. 1. Section 91 of the National Internal Revenue Code is

hereby amended to read as follows:

Section 2

SEC. 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

SEC. 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

SEC. 4. The Secretary of Finance shall issue rules and

regulations for the proper implementation of this Decree.

Section 5 Repealing clause.

SEC. 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 for modified accordingly

Section 6 Effectivity.

SEC. 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 seventy-four.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary

Section 91 Determination of value of usufructs, annuities, and other property.

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 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."