One of the three (3) bases for tax computations used by the Bureau of Internal Revenue (BIR) is the Zonal Valuation, along with the Assessed Value by the assessor’s office of the municipality where the property is located and its actual selling price.
Determining the Zonal Value of the property is significantly important to both sellers and buyers – Why? Because Zonal values are the basic determinants on the amount of tax you are subject to pay when either selling or buying real property.
BIR Zonal Value – What is it?
A Zonal Value is the scheduled value used by the Bureau of Internal Revenue (BIR) to serve as basis for the computation of the Fair Market Value of a property. It is also a tax value used for the basis of internal revenue tax computations.
How to look for it?
There are two ways to get the approved Zonal Value of your Real Estate Property:
- There are two ways to get the approved Zonal Value of your Real Estate Property:
- Through the BIR website
- You may visit www.bir.gov.phand search Zonal Values on their website – this will prompt you to the list of approved values by the BIR per municipality and their respective downloadable file for public reference.
- At the nearest BIR branch office
- You may physically visit or call your respective BIR branch office and request for it.
- Through the BIR website
How is it computed?
For BIR Zonal Valuations, there is no universal formula available unlike other valuations applicable for property tax appraisals. To properly know the computation on tax dues from your property, you must be able to secure the correct Zonal Value of the property in question.
Step 1: Know your BIR RDO
Visitwww.bir.gov.ph. In this website, check for the city or street of your property. Whatever BIR RDO it falls under, that is your BIR RDO. If you are unsure of the RDO of your property, you may reach out to the BIR office nearest to you for clarifications.
Step 2: Check your designated Zonal Valuation
On the BIR website under their ZONAL VALUES list, you may locate your respective RDO under the municipality listed per region. Choose the latest ZONAL VALUE available.
Example:
RDO No. 50-South Makati
Barangays Dasmarinas Village, Forbes Park, Fort Bonifacio, Guadalupe Nuevo, Pinagkaisahan, Pitogo, Salcedo Village, and Urdaneta Village
Step 3: Locate and Download the Zonal Value List excel file
After locating your respective RDO code on the BIR website, proceed to download the Zip File attached to it. After downloading the zip file, extract the excel file found inside the zip folder and find the location of your property in the spreadsheet.
To Note: The spreadsheet is color-coded to represent its department order recency and latest revisions.
Inside the spreadsheet, the following categories are found:
- Department Order;
- Definitions;
- Classification List of Properties;
- and an actual Table indicating the location, classification of property and its equivalent zonal value.
In the farthest right column, the applicable Zonal Value is presented to whichever location and classification your property is aligned with. The Zonal Value is calculated per square meter.
Example:
So, if your property is located in Bel-Air (Salcedo Village) ACT Tower in South Makati, is 145 square meters and is classified as a Commercial Condominium (CC), the calculation would be:
[square meter multiplied by zonal value] =145 sqm. X 120,000 (Zonal Value).
Moreover, it is best to still consult the nearest RDO branch to know the respective zonal value of the property you decide to buy or sell.
Need further information and assistance in Transferring your Transfer Certificate of Title or Condominium Certificate of Title under your name? Talk to our team at FILEDOCSPHIL to know more about the requirements and process. Call us today at (+63) 917 149 2337 or send an email to info@filedocsphil.com for more information.