What Are Zonal Values and Why Are They Important?

Zonal values are the official government-determined property values set by the Bureau of Internal Revenue (BIR) in the Philippines. They serve as the minimum taxable value for real estate transactions and play a crucial role in property sales, inheritance, donations, and taxation.

Why Do Zonal Values Matter?

• Tax Computation: Determines capital gains tax, documentary stamp tax, estate tax, and transfer fees.
• Property Valuation: Helps assess property prices for buyers and sellers.
• Legal Reference: Required for BIR processing of real estate transactions.
• Loan & Mortgage Applications: Some banks use zonal values as a reference.
• Investment Insights: Investors use zonal values to estimate property appreciation.

How to Find the Zonal Value of a Property in the Philippines

The BIR maintains an online database of zonal values, updated periodically. You can access the official zonal values at BIR Zonal Values.

Step-by-Step Guide to Checking Zonal Values Online

1. Go to the BIR Website
2. Select the Region or Revenue District Office (RDO).
3. Pick the Specific Location (Barangay/Subdivision).
4. Check the Property Type (Residential, Commercial, Industrial).
5. View and Download the Latest Zonal Values (PDF format).

How to Compute the Zonal Value of a Property

Formula for Zonal Value Computation:

Zonal Value = Lot Area (sqm) × Zonal Rate per sqm

Example Calculation:

• Property Location: Makati, Barangay Bel-Air
• Lot Area: 200 sqm
• Zonal Rate: ₱100,000 per sqm

Zonal Value = 200 × 100,000 = ₱20,000,000

Legal & Tax Implications of Zonal Values

1. Capital Gains Tax (CGT) Computation

CGT = 6% of the highest value (Zonal Value vs. Selling Price)

2. Documentary Stamp Tax (DST) Computation

DST = 1.5% × Highest Value

3. Estate Tax Computation

Estate tax is based on the zonal value or market value, whichever is higher.

Metro Manila Zonal Values: Key Highlights (2024 Update)

• Makati CBD: ₱150,000 – ₱400,000 per sqm
• Bonifacio Global City (BGC): ₱250,000 – ₱450,000 per sqm
• Quezon City (Commonwealth Area): ₱50,000 – ₱100,000 per sqm
• Pasig (Ortigas Center): ₱120,000 – ₱300,000 per sqm
• Cebu City (IT Park): ₱80,000 – ₱200,000 per sqm

Related Guides on BuySellLease.ph

• How to Pay Capital Gains Tax in the Philippines
• Understanding Real Estate Appraisal in the Philippines
• The Ultimate Guide to Selling Property in the Philippines