Republic

of the Philippines

DEPARTMENT OF FINANCE Roxas Boulevard Corner Pablo Ocampo, Sr Street Manila 1004

DEPARTMENT ORDER fk 2.A.% 19 CD afft b SUBJECT.

thti. Philippines Valuation Standards (151 Adoption of the IVSC Valuation Standards tkiltion) irnder Philippine Setting.

TO:

Jew,* of Local Alt Regional Directors of the Government Finance, Provincial, City and Municipal Assessors and other concerned DOT agencies.

WHt_R1 S LedliOlis 33 (1) and•(2) of Executive odor No 292, series of 198/, other.", stceows as the "Administrative Code or 1987' provide that "assist in the a! Government lanance (P,LE.du the Bureau i>I s on!Goal 90.,:amme!it Pavenue ietation ()I policies toimulation add Tmpmen management and "exercise administrative and administratioc technical sei.:erv!sion and coo dilation over treasury and assessment operation of !aoal clove-Jim-lents. WHEREAS. Section 701 of the Local Govenlinora Code of 1991 and Article 291 oPits implementing Rules arid 'Regulations (IRR) provide that the Department of f finance (0(D1- ) shall promulgate die net:';essary rules and regulations - or the ithaSSITICatiOn, appraisal and aL•3?.(7:3same11t. nl rea! property; ;.overninent has cotilni!fleo io pursue the It economic giowth by linercving, among otheis, pm cedillec 101 V:th 1111g real property Hireugh the t and Aerninistration and Manage!pent Pioject :igency nadenaking of vvniun Inc DOI Is one of the (I AMP), an departments hitc.y;:d Ia wan-tote re=form III mcperly WI i[RE AS, the NCI- through RI CI and thy t‘ipsina! tax keSeaiCil ,rneleuleniing real propertyvatisedon and taxation Center (N! R the second please cc ; AMP which aims io C "improve thequaidi 0! government and private sector appraisal ulurm Valuation Standards and a performance 1-1rough the adoption of single valuatikm base loi taxation. pursue properly taxation Informs. and Hn lunar; rsApanslon lay the lounuatici. rHr ugh educ;Thon nd haircng of property vc,1u21,anand appraisal activities'

VVI-11- RI:AS, the DOI through the BI GI , and in conjunction with a broadbased 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, and 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 T HEREFORL, the following guidelines 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 DOE agencies, and shall hereby be called the "Philippine Valuation Standards (15t Adoption of the IVSC Valuation Standards under Edition) Philippine Setting" (Philippine Valuation Standards) The Philippine Valuation Standards shall be Section 2. implemented by all local government assessors and other DOE agencies undertaking property valuation. Section 3. I he 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 valuation for real property taxation, the section entitled Mass Appraisal for Property I axation (ON 13) shall specifically be complied with For all other valuations for nontaxation purposes, the Philippine Valuation Standards as a whole shall be complied with; Section 3 I his 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 DOE 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 matter.

MARGARITO B. TEVES Secretary {