Implementation of the Revised Zonal Values of Real Properties Within the Jurisdiction of Revenue District Office No. 47 — East Makati, Makati City for Internal Revenue Tax Purposes

September 4, 2012 ZONAL VALUATION REVENUE DISTRICT OFFICE NO. 47 EAST MAKATI IMPLEMENTATION OF THE REVISED ZONAL VALUES OF REAL PROPERTIES WITHIN THE JURISDICTION OF REVENUE DISTRICT OFFICE NO. 47 EAST MAKATI, MAKATI CITY FOR INTERNAL REVENUE TAX PURPOSES TABLE OF CONTENTS The Executive Committee The Technical Committee, Consultants and Secretariat The Sub Technical Committee and The Representative of Private Sectors and The Municipal Assessors Classification Legend Makati City (5th revision) Barangay Ayala Center (Makati Commercial Center) Barangay Legaspi Village Barangay San Lorenzo Village Barangay San Lorenzo Condominiums Certain Guidelines in the Implementation of Zonal Valuation of Real Properties for RDO No. 47-East Makati Executive Committee on Real Property Valuation Pursuant to Department Order No. 6-2010 Dated March 12, 2010 CHAIRMAN : Nestor S. Valeroso Regional Director Chairman MEMBERS : Luz R. Lapid Acting Chief, Local Assessment Operations Division Bureau of Local Government Finance Alfredo Gil M. Tan Regional Officer, HLURB Expanded National Capital Region Carolina Q. Alvarez National President PARA, INC. 2012 Member ECRPV Wilfredo C. Manzon Past-President PARA, Inc. Member ECRPV Technical Committee on Real Property Valuation Pursuant to Department Order No. 6-2010 Dated March 12, 2010 CHAIRMAN : Manuel V. Mapoy Assistant Regional Director Chairman-TCRPV MEMBERS : Engr. Mario V. Badillo City Assessor Makati City Domingo de Vera Chairman PARA, INC. Marie Yvonne Apad President/CEO Intech Property Appraisal, Inc. CONSULTANTS : Trinidad A. Rodriguez OIC-Executive Director National Tax Research Center Emelita A. Tena Chief, Tax Specialist Special Research Technical Services Branch National Tax Research Sub-Technical Committee on Real Property Valuation Revenue District Office No. 47 East Makati Pursuant to Department Order No. 6-2010 Dated March 12, 2010 CHAIRMAN : Gerry O. Dumayas Revenue District Officer RDO NO. 47 East Makati MEMBERS : J. Romoles DT Penilla Asst. City Assessor Makati City Engr. Marylyn Panganiban Local Development Office Ofc of the City Mayor Oscar Baraquero Director PARA, INC. SECRETARIAT : Jane C. Denosta Group Supervisor Myrabel dela Cruz Revenue Officer Nestor Chan Revenue Officer Armina Anwar Revenue Officer DEFINITION OF TERMS Residential Land/Condominium Principally Devoted to Habitation. Commercial Land Devoted Principally to Commercial Purposes and Generally for the Object of Profit. Industrial Devoted Principally to Industry as Capital. Agricultural Devoted Principally to Raising of Crop such as Rice, Corn, Sugarcane, Tobacco, etc. or to Pasturing, Inland Fishing, Salt-Making, and Other Agricultural Uses Including Timberland and Forest Land. General Purpose Rawland, Undeveloped and Underdeveloped Area which has Potential for Development into Residential, Commercial, Industrial, Institutional, etc. Must Not be Less than 5,000 Square Meters. Condominium Is an Interest in Real Property Consisting of a Separate Interests in a Unit in a Residential, Industrial or Commercial Building or in an Industrial Estate and an Undivided Interests in Common, Directly and Indirectly, in the Land or the Appurtenant Interest of their Respective Units in the Common Areas. Vicinity Means an Area, Locality, Neighborhood or District About, Near, Adjacent Proximate or Contiguous to a Street being Located. CLASSIFICATION LEGEND: Code Classification RR Residential Regular CR Commercial Regular RC Residential Condominium CC Commercial Condominium CL Cemetery Lot A Agricultural GL Government Land GP General Purposes I Industrial X Institutional APD Area for Priority Development PS Parking Slot Agricultural Lands A1 Riceland Irrigated A2 Riceland Unirrigated A3 Upland A4 Coco Land A5 Citrus Land A6 Fishpond A7 Swamp A8 Nipa Land A9 Cotton Land A10 Cogon A11 Abaca Land A12 Orchard A13 Pineapple Land A14 Banana Land A15 Pasture Land A16 Corn Land A17 Sugar Land A18 Tobacco Land A19 Cacao A20 Lanzones A21 Durian A22 Rambutan A23 Mango A24 Mangrove A25 Camote/Cassava A26 Bamboo Land A27 Peanut Land A28 Soy beans Land A29 Grape vineyard A30 Pepper Land A31 Mineral Land A32 Non Metallic mineral Land A33 Coal Deposit A34 African Oil Land A35 Rubber Land A36 Forest Land/Timber Land A37 Horticultural Land A38 Salt Beds A39 Seashore A40 Resort A41 Sandy/Stony A42 Prawn pond A43 Sorghum A44 Ipil-ipil A45 Kangkong A46 Zacate A47 Vegetable Land A48 Coffee A49 Mountainous/Hilly Areas A50 Other Agricultural Lands Certain Guidelines in the Implementation of Zonal Valuation of Real Properties for RDO No. 47 East Makati 1. No zonal value has been prescribed for a particular classification of real property. Where in the approved schedule of zonal values for a particular barangay a.) No zonal value has been prescribed for a particular classification in a particular street/subdivision in a barangay, the zonal value prescribed for the same classification of real property located in the other street/subdivision within the same barangay of similar conditions shall be used; and b.) No zonal value has been prescribed for a particular classification of real property in one barangay, the zonal value prescribed for the same classification of real property located in an adjacent barangay of similar conditions shall be used. 2. Predominant use of Property. a.) All real properties, regardless of actual use, located in a street/barangay/zone, the use of which are predominantly commercial shall be classified as "commercial" for purposes of zonal valuation. b.) The predominant use of other classification of properties located in a street/barangay/zone, regardless of actual use shall be considered for purposes of zonal valuation. 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 declared as such by existing statutes and pertinent executive issuances (Revenue Regulations No. 17-2001). 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 property. 5. 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) and (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 higher.