PHILIPPINE VALUATION - blgf.gov.ph

1 PHILIPPINE VALUATION STANDARDSB ureau of Local Government FinanceDEPARTMENT OF FINANCEA doption of the iVSC VALUATION StAndArdS under PHILIPPINE Setting1st Edition, 2009 PHILIPPINE VALUATION STANDARDS, 1st EditionAdoption of the IVSC VALUATION Standards Under PHILIPPINE SettingCopyright Bureau of Local Government Finance, 20098F, EDPC Bldg., BSP Complex, Roxas Metro Manila, PhilippinesTelefax: + 632 524-6324 Web: : Printing, January Printing, April 2010 All rights part of this book may be reproduced in any form or by any means withoutexpress permission of the copyright owners and the 978 - 971 - 94098 - 2 - 3 Printed in the of the PhilippinesDEPARTMENT OF FINANCER oxas Boulevard Corner Pablo Ocampo, Sr.

2 Street Manila 1004 DEPARTMENT ORDER NO. 37-0919 October 2009 SUBJECT: Prescribing the PHILIPPINE VALUATION Standards (1st Edition) Adoption of the IVSC VALUATION Standards under PHILIPPINE SettingTO: All Regional Directors of the Bureau of Local Government Finance, Provincial, City and Municipal Assessors and other concerned DOF agencies WHEREAS, Sections 33 (1) and (2) of Executive Order No. 292, series of 1987, otherwise known as the Administrative Code of 1987 provide that the Bureau of Local Government Finance (BLGF) shall Assist in the formulation and implementation of policies on local government revenue administration and fund management; Exercise administrative and technical supervision and coordination over treasury and assessment operation of local governments.

3 WHEREAS, Section 201 of the Local Government Code of 1991 and Article 291 of its Implementing Rules and Regulations (IRR) provide that the Department of Finance (DOF) shall promulgate the necessary rules and regulations for the classification, appraisal and assessment of real property; WHEREAS, the PHILIPPINE Government has committed to pursue economic growth by improving among others, procedures for valuing real property through the Land Administration and Management Project (LAMP), an inter-Agency undertaking of which the DOF is one of the departments tasked to promote reform in property VALUATION .

4 WHEREAS, the DOF through BLGF and the National Tax Research Center (NTRC), is implementing real property VALUATION and taxation reforms under Component 4 of the second phase of the Land Administration and Management Project (LAMP 2), which aims to: Improve the quality of government and private sector appraisal performance through the adoption of Uniform VALUATION Standards and a single VALUATION base for taxation; Pursue property taxation reforms; and Lay the foundation through education and training for the future expansion of property VALUATION and appraisal activities ; WHEREAS, the DOF through the BLGF and in conjunction with a broad-based group of stakeholders, through a series of Technical Working Groups and Exposure Workshops, concluded that the International VALUATION Standards (IVS) is the most appropriate VALUATION standards for VALUATION under PHILIPPINE setting.

5 WHEREAS, adaptation to PHILIPPINE setting had been incorporated to the IVS to reflect national laws, policies and PHILIPPINE conditions; nonetheless, in case any conflict arises in the implementation of the PHILIPPINE VALUATION Standards, domestic laws shall take precedence over the standards and principles advocated therein. NOW THEREFORE, the following are hereby issued:Section 1. The International VALUATION Standards are hereby adopted and prescribed as the reference standards for local government assessors and other concerned DOF agencies, and shall hereby be called the PHILIPPINE VALUATION Standards (1st Edition) Adoption of the IVSC VALUATION Standards under PHILIPPINE Setting ( PHILIPPINE VALUATION Standards);Section 2.

6 The PHILIPPINE VALUATION Standards shall be implemented by all local government assessors and other DOF agencies undertaking property valuations;Section 3. The PHILIPPINE VALUATION Standards shall serve as a complement to the Local Assessment Regulations No. 1-04, Manual on Real Property Appraisal and Assessment Operations , and other issuances by this Department;Section 4. For purposes of valuations for real property taxation the section entitled Mass Appraisal for Property Taxation (GN 13) shall specifically be complied with.

7 For all other valuations for non-taxation purposes, the PHILIPPINE VALUATION Standards as a whole shall be complied with;Section 5. This Department Order supersedes all other Orders issued which are inconsistent herewith, and shall be effective immediately; Provided, however, in case any conflict arises in the implementation of the PHILIPPINE VALUATION Standards, domestic laws shall take precedence over the standards and principles advocated therein;Section 6. Accordingly, Regional Directors, Provincial, City and Municipal Assessors, and other concerned DOF agencies, are hereby enjoined to properly, efficiently, and strictly implement the provisions of the PHILIPPINE VALUATION Standards in their respective jurisdictions subject to provisions of pertinent laws on the B.

8 TEVES SecretaryRepublic of the PhilippinesDEPARTMENT OF FINANCER oxas Boulevard Corner Pablo Ocampo, Sr. Street Manila 1004 MESSAGE The development and publication of the PHILIPPINE VALUATION Standards (1st Edition) Adoption of the IVSC VALUATION Standards under PHILIPPINE Setting represents a major milestone in the PHILIPPINE land reform program. Through its Second Land Administration and Management Project (LAMP2) Government has made a long-term commitment to a broad program of reforms which include improving the quality of government and private sector property appraisal performance.

9 The implementation of the PHILIPPINE VALUATION Standards (1st Edition) Adoption of the IVSC VALUATION Standards under PHILIPPINE Setting will help us to meet the program s core objectives of Implementing a VALUATION system that will assess property values at their true market levels and Developing an effective and transparent land VALUATION system that is in line with internationally accepted standards . VALUATION Standards are the foundation of the property VALUATION process and are relevant to many other aspects of the land reform program including the professionalization of real estate services, legislative reform and educational training.

10 Their application will improve the accuracy, quality, fairness, and transparency of valuations and VALUATION reporting, which in turn will lead to greater confidence and reduce financial risk for those using them. In particular, the adoption by the public sector of a uniform set of VALUATION standards which is consistent with international best practice will provide consistency within local government assessors and national government agencies, develop a wider understanding by the general public and help to provide equitable solutions to those affected by valuations.