Publishing Presidential Decree No. 1054 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 and 539

December 8, 1976 REVENUE MEMORANDUM CIRCULAR NO. 41-76 SUBJECT : Publishing Presidential Decree No. 1054 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 and 539 TO : All Internal Revenue Officers and others concerned For the information and guidance of all concerned, there is quoted hereunder Presidential Decree No. 1054 which took effect on November 25, 1976 viz.: "SECTION 1. Section 91 of the National Internal Revenue Code is hereby amended to read as follows: ' Determination of value of usufruct, 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 of six months thereafter, at the election of the executor or administrator. However, the fair market value of real property shall be either (a) the current and fair market value as shown in the schedules of values fixed by provincial and city assessors pursuant to Presidential Decree No. 76, as amended or (b) the fair market value as determined by the Commissioner of Internal Revenue, whichever is higher.' "SECTION 2. Repealing Clause All laws or decrees which are inconsistent herewith are hereby repealed or modified accordingly. "SECTION 3. Effectivity This Decree shall take effect upon approval. "Done in the City of Manila, this 25th day of November in the year of Our Lord, nineteen hundred and seventy-six." FEATURES OF THE AMENDMENT Real properties and improvements left by decedents who died (as well as donations of similar properties made) on or after November 25, 1976 shall be appraised for internal revenue transfer tax purposes at either (a) the current and fair market value as shown in the schedules of values fixed by provincial and city assessors pursuant to Presidential Decree No. 76, as amended, or (b) the fair market value as determined by the Commissioner of Internal Revenue, whichever is higher. Please be guided accordingly. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3