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PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
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REPUBLIC ACTS
AN ACT AMENDING CERTAIN PROVISIONS
OF REPUBLIC ACT NO. 7471, ENTITLED "AN
ACT TO PROMOTE THE DEVELOPMENT OF PHILIPPINE OVERSEAS SHIPPING" AND
FOR OTHER PURPOSES. |
Section 1. Section 3(a) of Republic Act No. 7471 is hereby amended as follows: "Sec.
3. Definitions. As used in this Act: "(a)
Philippine overseas shipping means the operation of a Philippine
shipping enterprise in the overseas trade of any type of Philippine
registered ship for any kind of shipping operation, which shall
include, but shall not be limited to the transport of goods and/or
passengers, and the purchase of ships for operation and the sale of
ships after operation, except when the ship is operated solely between
ports in the Philippines." Sec. 2. Sec. 7 of the same Act is reinstated with amendments, to read as follows;
"Sec.
7. Exemption from Income Tax. - a Philippine shipping enterprise shall
be exempt from payment, of income tax on income derived from Philippine
overseas shipping for a period of ten (10) years from the date of
approval of this Act. Provided, that: "(a)
The entire net income, after deducting not more than fifteen percent
(15%) thereof for distribution of profits or declaration of dividends,
which would otherwise be taxable under the provisions of Title II of
the National Internal Revenue Code, is reinvested for the construction,
purchase, or acquisition of vessels and related equipment and/or in the
improvement or modernization of its vessels and related equipment in
accordance with the regulation; and "Any amount not so invested or withdrawn prior to the expiration of the period stipulated herein shall be subject to the corresponding income tax, including penalties, surcharges and interests." Sec. 3. Sec. 12 of the same Act is hereby likewise amended to read as follows:
Sec. 5. Effectivity. - This act shall take effect after fifteen (15)
days following its publication in at least two (2) newspapers of
general circulation. Approved: July 27, 2004 |
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