Republic of the Philippines

DEPARTMENT OF FINANCE Rosas Boulevard Corner Pablo Ocampo Sr. Street Manila 1004
DEPARTMENT ORDER NO. 37-09 19 OCTOBER 2009

SUBJECT: Prescribing the Philippine Valuation Standards {1st Edition) Adoption of Ihe IVSC Valuation Standards under Philippine Setting. TO: Ali 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 l ocal Government Finance (BLGF) shall "assist in the formulation and implementation cf policies on Local government revenue administration and fund management and "exercise administrative arid technical supervision and coordination over treasury and assessment operation of iocal governments";

WHEREAS. Section 201 ef the local Government Code of 1991 and Article 291 of its Implementing Rules arid Regulations (IRR) provide that the Department nf 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 Lard 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. WHEREAS, the DOF. through BLGF aria the National lax Research Center (NTRC) is implementing reai property valuation and taxation reforms under Component 4 of the second phase of LAMP which aims to "improve the quality o' 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 properly valuation and appraisal activities";

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WHEREAS the DOF, through the BLCF 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, 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 lake precedence over the standards and principles advocated therein. NOW THEREFORE, the following guidelines are hereby issued. Section 1. I he 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 (1sl Edition) - Adoption of the IVSC Valuation Standards under Philippine Setting' (Philippine Valuation Standards) Section 2. The Philippine Valuation Standards shall be implemented by all local government assessors and other DOF agencies undertaking property valuation. 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 valuation for real properly taxation, the section entitled Mass Appraisal for Property Taxation (ON 13) shall specifically be complied with. 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 ot the Philippine Valuation Standards, domestic laws she*It 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 matter

MARGARITO B. TEVES Secretary Last Updated (Friday, 04 March 2011 08:16)

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