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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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