A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1353
PRESIDENTIAL DECREE NO. 1353 -
AMENDING Section 30 OF THE TAX CODE TO ALLOW ACCELERATED DEDUCTION
UNDER CERTAIN CONDITIONS OF EXPLORATION AND DEVELOPMENT EXPENDITURES
|
chanroblesvirtualawlibrary
WHEREAS, it
is vital to the national development program to encourage the mining
industry to pursue continuous exploration and development of our
natural resources: chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree:cralaw:red
Section 1. Section 30(g) of the National Internal
Revenue Code is hereby amended by adding a new subparagraph to read as
follows:cralaw:red
"(3) Election to deduct exploration and development
expenditures. — In computing taxable income, the taxpayer may, at his
option, deduct exploration and development expenditures accumulated as
cost or adjusted basis for cost depletion as of January 1, 1978, as
well as exploration and development expenditures paid or incurred
during the taxable year: Provided, That the total amount deductible for
exploration and development expenditures shall not exceed twenty-five
percent (25%) of the net income from mining operations computed without
the benefit of any tax incentives under existing laws. This
subparagraph shall not apply to expenditures for the acquisition or
improvement of property of a character which is subject to the
allowances for depreciation under Section 30(f) (1) of this Code but
the allowance for depreciation thereon shall be treated as expenditures.
"The election by the taxpayer to deduct the exploration and development
expenditures is irrevocable and shall be binding in succeeding taxable
years.
"In no case shall this paragraph apply with respect to amounts paid or
incurred for the exploration and development of oil and gas. The term
"exploration expenditures" means expenditures paid or incurred for the
purpose of ascertaining the existence, location, extent, or quality of
any deposit of ore or other mineral, and paid or incurred before the
beginning of the development stage of the mine or deposit. The term
"development expenditures" means expenditures paid or incurred during
the development stage of the mine or other natural deposits. The
development stage of a mine or other natural deposit shall begin at the
time or other minerals are shown to exist in sufficient commercial
quantity and quality and shall end upon commencement of actual
commercial extraction."
Section 2. Effectivity. — This Decree shall take
effect on January 1, 1978.
DONE in the City of Manila,
this 21st day of April, in the year of Our Lord, nineteen hundred and
seventy-eight.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|