First, let’s define the term Zonal Value or Zonal Valuation:
Zonal Valuation – is an approved zonal schedule of fair market values on real property used by the Bureau of Internal Revenue as basis for the computation of internal revenue taxes.
The National Internal Revenue Code (NIRC) of 1997, as amended, is the law that governs the taxation in the Philippines. It gives the Bureau of Internal Revenue (BIR), under the supervision of the Department of Finance (DOF), the authority to assess and collect national internal revenue taxes, fees and charges and to enforce all forfeitures, penalties and fines connected therewith.
Pursuant to Section 6 of the aforesaid code as amended by Section 4 of R.A. No. 10963 or otherwise known as Tax Reform for Acceleration and Inclusion Act (TRAIN LAW), the Commissioner of the Internal Revenue is authorize to divide the Philippines into different zones or areas and determine the fair market value (FMV) of real properties located therein upon consultation with competent appraisers both from private and public sectors. These values are necessary for purposes of computing any internal revenue tax related to the aforementioned transfer.
The basis to determine the tax liabilities is the value of the property, whichever is higher of: (a) the gross selling price/consideration as shown in the duly notarized document of sale or transfer of real property; or (b) the FMV as determined by the Commissioner; or (c) the FMV as shown in the schedule of values of the Provincial and City Assessors.
So the zonal valuation is used primarily:
Basis for computing the fair market value of the property
computation of internal revenue taxes
Now, how do you go to get the Zonal Value of a Real estate property?
You can use our Zonal value page to search the zonal values for selected locations.
(best viewed with desktop or tablet)
On the mobile version we provide for the time being only the zonal values for San Carlos City, Negros Occidental.
Or you either go to https://www.bir.gov.ph/zonal-values?type=PAGE&to=zonal-values&label=Zonal%20Values (which will then give you a list of zonal values based on location, and prompt you to download the file for it) or call/visit your nearest BIR office to get the information.
Example:
RDO No. 76 - Victorias City, Negros Occidental is composed of the following Cities and Municipalities: Cadiz City , San Carlos City, Calatrava, E.B. Magalona, Escalante City, Manapla, Sagay City, Toboso and Victorias City
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