Amending Section 30 Of The Tax Code To Allow Accelerated Deduction Under Certain Conditions Of Exploration And Development Expenditures
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Amending Section 30 Of The Tax Code To Allow Accelerated Deduction Under Certain Conditions Of Exploration And Development Expenditures
Presidential Decree No. 1353
January 1, 1978
Case Overview and Summary
Summary of Presidential Decree No. 1353Amending Section 30 of the Tax Code to Allow Accelerated Deduction Under Certain Conditions of Exploration and Development Expenditures
- Allows taxpayers engaged in mining operations to deduct exploration and development expenditures in computing taxable income, subject to certain conditions:
• Taxpayers can deduct exploration and development expenditures accumulated as cost or adjusted basis for cost depletion as of January 1, 1978, as well as expenditures paid or incurred during the taxable year. (Section 1)
• The total amount deductible for exploration and development expenditures shall not exceed 25% of the net income from mining operations computed without any tax incentives under existing laws. (Section 1)
• The election to deduct exploration and development expenditures is irrevocable and binding in succeeding taxable years. (Section 1)
• The deduction does not apply to expenditures for the acquisition or improvement of property subject to depreciation allowances under Section 30(f)(1) of the Tax Code. (Section 1)
• The deduction does not apply to amounts paid or incurred for the exploration and development of oil and gas. (Section 1)
- Definitions:
• "Exploration expenditures" means expenditures paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral, and paid or incurred before the beginning of the development stage of the mine or deposit. (Section 1)
• "Development expenditures" means expenditures paid or incurred during the development stage of the mine or other natural deposits. (Section 1)
• The development stage of a mine or other natural deposit begins when minerals are shown to exist in sufficient commercial quantity and quality, and ends upon commencement of actual commercial extraction. (Section 1)
- Effectivity: This Decree shall take effect on January 1, 1978. (Section 2)
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Executive Issuances
Presidential Decrees
mining
exploration expenditures
development expenditures
tax deduction
net income from mining operations
tax incentives
depreciation allowances
oil and gas
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minerals
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commercial extraction
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Amending Section 30 Of The Tax Code To Allow Accelerated Deduction Under Certain Conditions Of Exploration And Development Expenditures
Presidential Decree No. 1353
•January 1, 1978
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1353
AMENDING SECTION 30 OF THE TAX CODE TO ALLOW ACCELERATED DEDUCTION UNDER CERTAIN CONDITIONS OF EXPLORATION AND DEVELOPMENT EXPENDITURES
WHEREAS, it is vital to the national development program to encourage the mining industry to pursue continuous exploration and development of our natural resources;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree:
Section 1. >Section 30(g) of the National Internal Revenue Code is hereby amended by adding a new subparagraph to read as follows:
"(3) Election to deduct exploration and development expenditures. In computing taxable income, the taxpayer may, at his option, deduct exploration and development expenditures accumulated as cost or adjusted basis for cost depletion as of January 1, 1978, as well as exploration and development expenditures paid or incurred during the taxable year: Provided, That the total amount deductible for exploration and development expenditures shall not exceed twenty-five percent (25%) of the net income from mining operations computed...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
mining
exploration expenditures
development expenditures
tax deduction
net income from mining operations
tax incentives
depreciation allowances
oil and gas
ore
minerals
development stage
commercial extraction
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1353
AMENDING SECTION 30 OF THE TAX CODE TO ALLOW ACCELERATED DEDUCTION UNDER CERTAIN CONDITIONS OF EXPLORATION AND DEVELOPMENT EXPENDITURES
WHEREAS, it is vital to the national development program to encourage the mining industry to pursue continuous exploration and development of our natural resources;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree:
Section 1. >Section 30(g) of the National Internal Revenue Code is hereby amended by adding a new subparagraph to read as follows:
"(3) Election to deduct exploration and development expenditures. In computing taxable income, the taxpayer may, at his option, deduct exploration and development expenditures accumulated as cost or adjusted basis for cost depletion as of January 1, 1978, as well as exploration and development expenditures paid or incurred during the taxable year: Provided, That the total amount deductible for exploration and development expenditures shall not exceed twenty-five percent (25%) of the net income from mining operations computed...
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