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PRESIDENTIAL DECREE NO. 745
PRESIDENTIAL DECREE NO. 745 -
LIBERALIZING THE FINANCING AND CREDIT TERMS FOR LOW COST HOUSING
PROJECTS OF DOMESTIC CORPORATIONS AND PARTNERSHIPS
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WHEREAS,
the Philippine Constitution provides that the State shall
establish, maintain and ensure adequate social services in the
field of housing to guarantee the enjoyment of the people of a
decent standard living; chanroblesvirtualawlibrary
WHEREAS, the housing problem of the country has grown into a
critical magnitude requiring the immediate and concrete
institution of measures which can meet the needs of Filipino
families for decent dwellings;chanroblesvirtualawlibrary
WHEREAS, the need to resolve the housing problem therefore calls
for a joint venture between the government and the private sector;chanroblesvirtualawlibrary
WHEREAS, it is incumbent upon the Government to harness and
promote housing ventures in the terms of capital expenditures,
land, expertise and financing including the provision for
incentives and facilities to broaden the private sector
participation in housing investment; chanroblesvirtualawlibrary
WHEREAS, there are domestic corporations and partnership which
are willing or already have plans to provide housing
accommodations for their employees and workers but are stymied by
financial difficulties particularly by the inability of their
employees and workers to pay the amortization or rental rates (in
the case of company housing) even at subsidized rates;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 and order the following:cralaw:red
Section 1. The GSIS and the SSS shall
undertake the necessary measures to liberalize financing and
credit terms for low cost housing that may be proposed by
domestic corporations and partnership with at least three hundred
employees or workers, organized and existing under Philippine
laws, operating for profit, exclusively for their employees and
workers under any or all of the following schemes:cralaw:red
(a) Low interest rates.
(b) Lengthening of repayment period. chanroblesvirtualawlibrary
(c) Adoption of graduated amortization scheme
in such a way that smaller amortizations are paid during initial
period of repayment; and
(d) Government subsidy of a portion of the
interest payment.
Section 2. Domestic corporations or partnerships
as defined above which invest a portion of their funds in
housing for their employees and workers shall be allowed a fairly
reasonable margin of profit if lots and dwelling units are to be
sold to the employees and the workers on easy installment terms;
or if the dwelling units be leased to the employees and workers
on a monthly rental basis.
Section 3. Pursuant to the above incentives,
such domestic corporations and partnerships shall enjoy tax
exemptions on:cralaw:red
(a) Real estate taxes on the improvements
which will be used exclusively for housing their employees and
workers; and chanroblesvirtualawlibrary
(b) Taxes on income derived from the
installment sales of houses to employees and workers of the
company or income derived from rentals thereof.
Section 4. All laws, orders and decrees as well as
rules and regulations inconsistent herewith are hereby
repealed and/or modified accordingly.
Section 5. This order shall take effect
immediately. chanroblesvirtualawlibrary
DONE in the City of Manila,
this 15th day of July, in the year of Our Lord, nineteen hundred
and seventy-five.
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