CIRCULARIZING THE IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT (RA) NO. 12001

REVENUE MEMORANDUM CIRCULAR (RMC) NO. 030-2025

This circular is issued to disseminate the Implementing Rules and Regulations (IRR) of RA No. 12001, entitled “AN ACT INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND ASSESSMENT IN THE PHILIPPINES, REORGANIZING THE BUREAU OF LOCAL GOVERNMENT FINANCE, GRANTING TAX AMNESTY ON REAL PROPERTY AND SPECIAL LEVIES ON REAL PROPERTY, AND APPROPRIATING FUNDS THEREFOR,” or otherwise known as the “Real Property Valuation and Assessment Reform Act (RPVARA).”

Salient points of the IRR of RA No. 12001:

1. Reorganization of the Bureau of Local Government Finance (BLGF)
   1. The BLGF of the Department of Finance (DOF), headed by an Assistant Secretary, shall be the primary agency to lead the implementation of the provision of the Act and this IRR. In addition to the powers vested upon it by E.O. No. 292, otherwise known as the “Administrative Code of 1987,”
   2. To support expanded functions of the BLGF, the Real Property Valuation Service (RPVS) shall be established in the BLGF Central Office and counterpart personnel in the BLGF Regional Offices
2. Establishment of a Real Property Valuation Unit (RPVU)
   
   An RPVU shall be created under the Office of the Local Assessor in every province and city, and the lone municipality in Metropolitan Manila, within two (2) years from the effectivity of this IRR, in accordance with the guidelines prescribed by the Civil Service Commission (CSC), with the funding to be included in the annual budget of the Office of the Local Assessor duly approved by the Sanggunian concerned.
3. Creation of Central Consultative Committee (CCC) and Regional Consultative Committee (RCC)
4. Development of Valuation Standards
   
   The BLGF shall develop, adopt, maintain, and implement uniform valuation standards for real property, which shall be known as the PVS. In the development of these standards, the CCC and RCC shall consult with stakeholders.
5. Valuation of Real Property
   1. Market Value-Based Valuation: In conformity with the PVS adopted pursuant to the Act and this IRR, all real properties, whether taxable or exempt, shall be valued or appraised based on prevailing Market Values in the locality where the property is situated.
   2. Valuation of Depreciable Assets. In accordance with the PVS, depreciation shall be taken into consideration in the valuation of depreciable assets, in all instances.

1. Schedule of Market Values (SMV)
   1. Preparation, Submission, Review and Certification of SMVs
      
      All assessors shall prepare and submit their proposed SMVs, compliant with the PVS and such other rules, and specifications as may be set by the Secretary of Finance, within twelve (12) months following the receipt by the assessor of the notice from the BLGF. The proposed SMVs shall be reviewed and certified by the Secretary of Finance.
   2. Updating of the SMV
      
      All assessors shall update their respective SMVs within two (2) years from the date of effectivity of the Act or not later than July 5, 2026. After the first updating of the SMV upon the effectivity of the Act and this IRR, all shall undertake the updating of their SMVs and conduct the general revision of real property values and assessments, and classifications of real property every three (3) years thereafter.
   3. Revision of the SMVs
      
      Notwithstanding the effectivity of the SMV, all assessors shall recommend the revision thereof under the following circumstances:
      1. In cases of any significant change in the Market Values where the property is located after the SMV has been approved and prior to the next revision, brought, about by the following:
         1. Introduction of road right of way or similar infrastructure;
         2. In times of calamities or disasters, whether man-made or natural;
         3. During a pandemic or declared public health emergency, whether national or local;
         4. Other analogous adverse circumstances
      2. Where a correction of errors and inequalities in the SMV is deemed necessary
         1. Uses of the SMVs
            
            For taxation purposes:
            1. As basis for the general revision of the assessment and property classification by the local assessor, and in the determination and adjustment of the assessment levels and tax rates to be adopted by the LGU through the Sanggunian;
            2. As basis in determining the Market Value of other real property-related taxes such as Tax on Transfer of Real Property Ownership, Tax on Sand and Gravel, Community Tax, and other fees and charges;
            3. The Commissioner of Internal Revenue shall use the SMV or the actual gross selling price in consideration, as stated in real property transaction documents, whichever is higher, in computing any internal revenue tax.

 For other purposes:
As benchmark for the appraisal of real property and other related purposes of all government agencies or instrumentalities, and Government-Owned or -Controlled Corporations (GOCCs), such as for purposes of:

1. Public land disposition, land development for housing, township and infrastructure, and mortgage to secure the performance of obligations, among other
2. Letter-offer in negotiated sale and the payment of just compensation in expropriation proceedings under existing laws.
3. Cap on the Increase of the Real Property Tax Resulting from the Increase in Real Property Values and Assessments.

For the first year of effectivity of the approved SMV, any increase in real property taxes shall be limited to a maximum of six percent (6%) of the real property taxes assessed on such properties prior to the effectivity of the first SMV under the Act: Provided, That the cap shall be applicable to each type of real property tax, including Special Education Fund, Idle Land Tax, and other Special Levies in real property: Provided, further, That the LGU may impose, by way of an ordinance, a cap on the increase in real property taxes for the succeeding years

1. Granting Tax Amnesty on real property and special levies on real property

A real property tax amnesty is granted on penalties, surcharges and interests from all unpaid real property taxes, including the Special Education Fund, Idle Land Tax, and other Special Levy Taxes, that were incurred prior to the effectivity of the Act or on July 5, 2024. Provided, that the real property tax amnesty can only be granted within two (2) years after the effectivity of the Act or until July 5, 2026.

This relief may be availed of by a delinquent real property owner with the option of one-time payment or installment of the delinquent real property taxes within two (2) years from the effectivity of the Act or until July 5, 2026.

The amnesty shall not extend to the following real properties:

1. Delinquent real properties which have been disposed of at a public auction to satisfy the real property tax delinquencies
2. Real properties with tax delinquencies which are being paid pursuant to a compromise agreement; and
3. Real properties subject of pending cases in court for real property tax delinquencies.