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PRESIDENTIAL DECREE NO. 779
PRESIDENTIAL DECREE NO. 779
- AMENDING Section 34 AND INSERTING SUB-Section 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
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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; chanroblesvirtualawlibrary
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:cralaw:red
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 Section 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.
Section 2. Beginning January 1, 1976, capital gains
arising from stock transaction shall be subject to tax under a new
subsection in Section 34 of the National Internal Revenue Code, which
shall read as follows:cralaw:red
"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: chanroblesvirtualawlibrary
Rates
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%
Over P50,000 25%
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."
Section 3. The Secretary of Finance shall issue rules
and regulations for the proper implementation of this Decree.
Section 4. Effectivity. — Section 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.
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