A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Presidential Decrees :
M a n i l a
PRESIDENTIAL DECREE No. 779
AMENDING Sec. 34 AND INSERTING SUB-Sec. 34 (g) OF THE NATIONAL INTERNAL REVENUE CODE; AS AMENDED, BY IMPOSING A CAPITAL GAINS TAX ON STOCK TRANSACTIONS AND EXTENDING THE DEADLINE OF THE STOCK TRANSACTION TAX TO DECEMBER 31, 1975, UNDER REPUBLIC ACT NUMBERED SIX THOUSAND ONE HUNDRED FORTY-ONE, AS AMENDED BY PRESIDENTIAL DECREE NUMBER TEN
WHEREAS, it is imperative to adopt measures responsive to the requirements of a developing economy foremost of which is the financing of economic development programs;
WHEREAS, to encourage more capital investment, persons investing in shares of stock should be subjected to a lesser rate of capital gains tax.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby order and decree as follows:
Section 1. The five-year period prescribed in Republic Act Six Thousand One hundred and Forty-One during which any capital gain arising from a stock transaction on which the tax therein imposed has been paid shall not be taken into account in computing net capital gain or loss under Sec. 34 of the National Internal Revenue Code, shall be extended up to December 31, 1975: Provided, However, That the 1/4 of 1% stock transaction tax shall continue to be collected after the aforesaid date.
Sec. 2. Beginning January 1, 1976, capital gains arising from stock transaction shall be subject to tax under a new subsection in Sec. 34 of the National Internal Revenue Code, which shall read as follows:
"Sec. 34. (g) Gains from sale, barter, or exchange of shares of stock derived from sources within the Philippines shall be taxed under the following schedules:
|Not over P10,000.00||10%|
|Over P10,000 but not over P15,000||12%|
|Over P15,000 but not over P20,000||14%|
|Over P20,000 but not over P35,000||17%|
|Over P35,000 but not over P50,000||20%|
Provided, however, That non-resident investors buying and/or selling shares of stock of Philippine corporations listed in the dollar or any acceptable foreign currency board of any stock exchange shall be subject only to the 1/4 of 1% stock transaction tax."
Sec. 3. The Secretary of Finance shall issue rules and regulations for the proper implementation of this Decree.
Sec. 4. Effectivity. Sec. 2 of this Decree shall take effect on January 1, 1976.
Done in the City of Manila, this 25th day of August, in the Year of Our Lord Nineteen Hundred and Seventy-Five.