Presidential Decree No. 539 (PD 539) — 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.
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:
SEC. 1. Section 91 of the National Internal Revenue Code is
hereby amended to read as follows:
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.
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.
SEC. 4. The Secretary of Finance shall issue rules and
regulations for the proper implementation of this Decree.
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herewith, are hereby repealed and for modified accordingly
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
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."
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
