Publishing Presidential Decree No. 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

October 16, 1974 REVENUE MEMORANDUM CIRCULAR NO. 63-74 SUBJECT : Publishing Presidential Decree No. 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 TO : All Internal Revenue Officers and others concerned For the information and guidance of all concerned, there is quoted hereunder Presidential Decree No. 539 which took effect on August 14, 1974 viz.: "SECTION 1. Section 91 of the National Internal Revenue Code is hereby amended to read as follows: "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 of 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. "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. "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/or modified accordingly. "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 and seventy-four." Beginning August 14, 1974, the date of effectivity of Presidential Decree No. 539, the fair market value of real properties and improvements as reflected in the schedules of values prepared by the provincial and city assessors pursuant to Presidential Decree No. 76, as amended, shall serve as the basis in computing the internal revenue transfer taxes. The percentage adjustments made by the Real Property Valuation Committee shall be used as a basis with respect to transfers made prior to the effectivity of Presidential Decree No. 539; but if no such percentage adjustment had been made as of the date of death or as of six months thereafter, or as of the date of transfer, as the case may be, the fair market value as determined by the Commissioner shall be used as basis, unless the contrary is shown by the taxpayer. Please be guided accordingly. MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5