A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Republic Acts :
|REPUBLIC ACT NO. 901 - AN ACT TO
REVISE REPUBLIC ACT NUMBERED THIRTY-FIVE, ENTITLED "AN ACT AUTHORIZING
THE EXEMPTION OF NEW AND NECESSARY INDUSTRIES FROM THE PAYMENT OF THE
INTERNAL REVENUE TAXES"
| Section 1. Any
person, partnership, company or corporation who or which, subsequent to
the approval of this Act, shall engage in a new and necessary industry
shall be entitled to exemption until December thirty-one, nineteen
hundred and fifty-eight from payment of all taxes directly payable by
such person, partnership, company or corporation in respect to said
industry and to a diminishing exemption during the following four years
as follows: ninety per centum of all said taxes during the period from
January first to December thirty-one, nineteen hundred and fifty-nine;
seventy-five per centum of all said taxes during the period from
January first to December thirty-one, nineteen hundred and sixty; fifty
per centum of all said taxes during the period from January first to
December thirty-one, nineteen hundred and sixty-one; and ten per centum
of all said taxes during the period from January first to December
thirty-one, nineteen hundred and sixty-two; after which such person,
partnership, company, or corporation shall be liable in full to all
taxes: Provided, however, That a grantee of tax exemption, whether
under Republic Act Numbered Thirty-five or this Act, shall be subject
to the full income tax after it shall have enjoyed tax exemption for
six years: Provided, further, That the tax exemption provided for in
this Act shall not include any company or person engaged in the
processing of oil, gasoline, lubricants and other similar fuels and
by-products: Provided, still further, That those who or which were
declared engaged in a new and necessary industry under the provisions
of Republic Act Numbered Thirty-five and still enjoying exemption
thereunder from all internal revenue taxes of a period of four years,
shall automatically be entitled to exemption under this Act, but in no
case shall the total number of years of their exemption, both under
Republic Act Numbered Thirty-five and this Act, be for more than ten
years. A grantee of tax exemption under Republic Act Numbered
Thirty-five whose exemption has expired prior to the approval of this
Act shall, upon application filed within three months from the approval
of this Act and if found to be still qualified under provisions of the
law and regulations pursuant to which its exemption was granted, be
entitled to tax exemption under this Act for a period of six years from
the approval hereof.
Sec. 2. For the purposes of this Act, a "new" industry is one not existing or operating on a commercial scale prior to January first, nineteen hundred and forty-five. Where several applications for exemption are filed in connection with the same kind of industry, the Secretary of Finance shall approve them in the order in which they have been filed until the total output or production of those already granted exemption for that particular kind of industry is sufficient to meet local demand or consumption: Provided, That the limitation shall not apply to products intended for export.
Sec. 3. For the purposes of this Act, a
"necessary" industry is one complying with the following requirements:
Sec. 4. The benefits of exemption of new and necessary industries from the payment of all taxes under this Act shall, upon the approval of the application for exemption by the Secretary of Finance, retroact as of the date of the filing of the application for exemption.
Sec. 5. All applications for exemption from the payment of all taxes under the provisions of this Act shall be filed with the Secretary of Finance. In order to determine whether the industry complies with the requirements of this Act, the Secretary of Finance shall avail of the facilities of the Department of Commerce and Industry, the Central Bank and the Office of the Economic Coordination.
Sec. 6. Every application for exemption shall
contain the following statements:
Sec. 7. Any industry granted tax exemption under the provisions of this Act shall, during the period of exemption, report to the Secretary of Finance at the end of every fiscal year a complete list and a correct valuation of all real and personal property of its industrial plant or factory; shall file a separate income tax return; shall submit periodically to the proper tax collecting agency applications for certificates of tax exemption in such form to be prescribed by the Secretary of Finance covering taxes which, if not for the exemption granted, would be due and payable; shall keep separately the accounting records relative to the industry declared tax exempt; shall keep such records and submit such sworn statements as may be prescribed from time to time by the Secretary of Finance.
Sec. 8. The Secretary of Finance may suspend the privilege of tax exemption if the grantee fails to comply with any of the obligations imposed by this Act.
Sec. 9. Upon receipt of the application by the Secretary of Finance, the date and time of receipt thereof shall be noted and if it appears that the industry or factory is exemptable under this Act and regulations, a certificate of exemption may be issued.
Section 10. The following fees shall be collected for
the qualification and issuance of certificates of exemption:
Section 11. The Secretary of Finance shall promulgate the necessary rules and regulations for this proper enforcement and to carry out the intents and purposes of this Act, and shall determine the scope and extent of the privileges granted hereunder.
Section 12. All existing laws or parts thereof, executive orders and administrative regulations contrary to the provisions of this Act are hereby repealed.
Section 13. This Act shall take effect upon its
Approved: June 20, 1953