AFTER the Tax Reform for Acceleration and Inclusion Law and Corporate Recovery and Tax Incentives for Enterprises Act comes Real Property Valuation and Assessment Reform Act which forms “Package 3” of the Department of Finance’s “Comprehensive Tax Reform Program,” . The measure has been approved by both chambers of Congress and is awaiting President Marcos’ signature.cient real property valuation system.
During consultations in 2021, BLGF found out that nearly 40% of schedule of zonal values and 60% of schedule of market values are outdated with 46/120 revenue district offices and 137/227 Local Government Units not revising their values in the last three years. This measure will try to address several issues, but here are the top provisions that will have the most impact:– all government values for taxation will be through the LGU’s schedule of market values . The BIR’s zonal value will be retired once, the new SMV is fully implemented within two years.. With the regular updating of values, transaction costs will be higher.
The law will also elevate overall market confidence that is essential for a healthy real estate market which encourages investment and economic growth.As Colliers Philippines previously highlighted, the property market is starting to rebound. Property values will most likely follow the trajectory of the sustained and projected growth of the Philippine economy.