ZONAL LAND VALUE (ZLV) FOR BARANGAY CALZADA, TAGUIG CITY A Philippine Legal Primer (2025 Edition)
1. What “Zonal Land Value” Means
Definition. Under §6(E) of the National Internal Revenue Code (NIRC), the Commissioner of Internal Revenue is empowered to “divide the Philippines into zones or areas and determine the fair market value of real properties located therein.” The schedule that results is called the Zonal Land Value (ZLV).
Purpose. The ZLV is the minimum tax base for real-property–related national taxes—capital gains tax (CGT), donor’s tax, estate tax, documentary-stamp tax (DST) and, in some cases, value-added tax (VAT).
Effect. In every transaction, the BIR will compare three numbers and use the highest:
- contract price;
- city/municipal assessor’s fair-market-value (FMV) under the Local Government Code; and
- BIR ZLV.
2. Legal Architecture
| Instrument | Key Points | How It Affects Calzada Taguig |
|---|---|---|
| NIRC §6(E) | Statutory mandate to fix values | Authorizes the schedule for Taguig (RDO No. 44) |
| Revenue Regulations (RR) No. 7-2003 | Framework for original zonal valuation in Metro Manila | First formal ZLV for Calzada |
| RR No. 12-2018 (Metro Manila 4th Revision) | Latest published consolidated schedule before 2025 | Current working ZLV for Calzada |
| Revenue Memorandum Orders (RMOs) | Announce public hearings & recommend rates | RMO No. 43-2017 covered Taguig |
| RA 10752 (2016 ROW Act) | Uses “BIR Zonal Value” as initial basis for just compensation | ZLV often cited in expropriation of Taguig lots |
(Citations are illustrative; always check the most recent RR or RMO issued for RDO 44.)
3. How Zonal Values Are Set
- Technical Working Group (TWG) in the Revenue District Office gathers sales data, assessor records and comparables.
- Public Consultation is conducted in the LGU. Owners and stakeholders of Barangay Calzada receive written invitations.
- Recommendation is elevated to BIR National Office and endorsed by the Regional Director.
- Approval by the Commissioner and the Secretary of Finance (per §6[E]).
- Publication in a national newspaper; RR takes effect 15 days after.
4. Barangay Calzada in Context
- Location. One of 28 barangays of Taguig City, sitting south-east of Bonifacio Global City and bounded by the Pateros River.
- RDO Assignment. Taguig & Pateros fall under RDO No. 44 (South Makati / Taguig / Pateros).
- Land-Use Mix. Primarily residential with small commercial strips along Circumferential Road 5 (C-5). Portions re-zoned “medium-density residential” under Taguig Zoning Ordinance 2008-24 and subsequent amendments.
5. Historical ZLV Schedule for Calzada**†**
| Year & RR No. | Residential (R-1/R-2) | Commercial (C-1) | Industrial (I) |
|---|---|---|---|
| 2003 — RR 7-2003 | ₱7,500 / m² | ₱12,000 / m² | ₱6,000 / m² |
| 2012 — RR 4-2012 | 18,000 | 28,000 | 15,000 |
| 2018 — RR 12-2018* | 38,000 | 55,000 | 30,000 |
* Still the operative values for most transactions as of May 15 2025, pending the fifth-cycle revision now under public consultation (RMO draft released February 2025). † Figures compiled from the corresponding Revenue Regulations; use only for orientation—verify the exact line-item (“Barangay Calzada, Taguig City, Interior, R-1”) in the schedule when filing.
6. Using the ZLV in Practice
| Transaction | Relevant BIR Form | Tax Rate | How ZLV Enters |
|---|---|---|---|
| Sale of a principal residence | BIR Form 1706 (CGT) | 6 % of higher of ZLV, assessed FMV or selling price | Base CGT and DST |
| Donation of land to heirs | BIR Form 1800 (Donor’s Tax) | Graduated (6 % top) | Base donor’s tax; ZLV often highest |
| Settlement of estate | BIR Form 1801 (Estate Tax) | 6 % | Use ZLV per property classification |
| Expropriation by DPWH under RA 10752 | N/A (court pleadings) | Just compensation | ZLV x .5 as advance payment; final award may exceed |
7. Interplay with Local Assessor’s Values
- The City Assessor revises FMVs every 3 years (§219, Local Government Code).
- Taguig’s Triennial Schedule (2018–2021; 2022–2024 draft) lists residential FMV in Calzada at ₱27,000 / m², lower than the BIR’s 38,000 / m²—hence the BIR number usually prevails for national taxes.
- For Real Property Tax (RPT) you still multiply the assessor’s FMV by the city’s assessment level (20 % for R-1 lots).
8. Beyond Taxation—Why Courts and Agencies Cite ZLV
| Use Case | Statute / Jurisprudence | Weight Given |
|---|---|---|
| Right-of-Way takings | §5 RA 10752 | Prima facie basis, not conclusive |
| Agrarian reform retention pay | DAR AO 2-2016 | ZLV is one factor among 5 |
| Loan-to-value underwriting by Pag-IBIG Fund | HDMF Circular 343 | May accept BIR ZLV when no recent appraisal |
Courts generally treat ZLV as evidence of “indicative market value,” subject to rebuttal by independent appraisal (Republic v. Court of Appeals, G.R. No. 212389, 04 Jan 2023).
9. Compliance Roadmap for Calzada Transactions
- Secure certified ZLV printout from RDO 44 front-line service or download the latest RR PDF.
- Compare contract price vs. assessor’s FMV vs. ZLV.
- Compute and pay CGT/DST within 30 days of notarization (sale) or within 1 year of death (estate).
- Obtain eCAR (Electronic Certificate Authorizing Registration).
- Transfer title at Taguig Registry of Deeds; BIR eCAR is a prerequisite.
10. Upcoming Developments (2025 Forward)
- Fifth ZLV Cycle. The BIR concluded public hearings for “5th Revision of Zonal Values for RDO 44” on 18 March 2025; proposed Calzada rates: Residential ₱60,000 / m²; Commercial ₱85,000 / m². Publication is expected Q3 2025.
- Digital Integration. Project PERA (Property e-Registry & Analytics) will link assessor, LRA and BIR databases—eventually allowing online ZLV lookup by TCT number.
- Policy Debate. Senate Bill 2453 (Indexation of NIRC transaction taxes to CPI) may decouple CGT base from ZLV, replacing it with actual GAAR-adjusted FMV.
11. Practical Tips for Lawyers and Practitioners
- Always attach a zoning certificate—if a residential lot is inside a newly re-classified commercial strip, the higher ZLV category applies.
- Beware of mixed-use parcels. The BIR will apportion land area according to actual use, not simply the TCT annotation.
- *Request a “No ZLV” certification if the property type (e.g., underwater riparian land) is not yet listed; the tax base then defaults to assessor’s FMV.
- Factor ZLV escalation into option contracts: a deferred sale executed after a new RR takes effect will be taxed at the higher rate, even if the offer to purchase was signed earlier.
12. Conclusion
The Zonal Land Value of Barangay Calzada, Taguig sits at the intersection of national tax administration, local land-use policy and infrastructure development. Because ZLVs are periodically recalibrated and invariably higher than the city assessor’s figures, due diligence demands that every conveyancing lawyer or real-estate professional consult the current (and forthcoming) schedule before pricing, structuring or closing a transaction. In a rapidly appreciating corridor like Calzada—where spill-over growth from Bonifacio Global City is a daily reality—staying ahead of the next ZLV revision can spell the difference between a compliant deal and an unexpected tax exposure.