Amending Sections 24(B) And 53(B) (2) Of The National Internal Revenue Code, As Amended, By Imposing A Tax Of Fifteen Per Cent (15%) On Interest On Foreign Loans
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Amending Sections 24(B) And 53(B) (2) Of The National Internal Revenue Code, As Amended, By Imposing A Tax Of Fifteen Per Cent (15%) On Interest On Foreign Loans
Presidential Decree No. 131
February 19, 1973
Case Overview and Summary
Summary of Presidential Decree No. 131Imposition of 15% Tax on Interest on Foreign Loans
- Imposes a tax of fifteen percent (15%) on interest on foreign loans earned beginning from January 1, 1973. [Sections 24(b)(1) and 53(b)(2)]
- The tax is imposed to attract loans from foreign countries for economic development purposes.
- The Commissioner of Internal Revenue, upon approval by the Secretary of Finance, shall promulgate the implementing regulations on these amendments.
Rationale and Context
- It is imperative to adopt measures responsive to the requirements of a developing economy, foremost of which is the speedy restructuring of the social, economic and political institutions of the country.
- The economic development of the country needs funding from domestic and foreign sources.
- In order to attract loans from foreign countries, an appropriate tax on their income should be levied on interest earned and remitted abroad.
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Executive Issuances
Presidential Decrees
tax
foreign loans
interest
economic development
restructuring
domestic funding
foreign funding
income tax
interest income
remittance abroad
implementing regulations
Commissioner of Internal Revenue
Secretary of Finance
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Amending Sections 24(B) And 53(B) (2) Of The National Internal Revenue Code, As Amended, By Imposing A Tax Of Fifteen Per Cent (15%) On Interest On Foreign Loans
Presidential Decree No. 131
•February 19, 1973
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 131 February 19, 1973
AMENDING SECTIONS 24(b) AND 53(b) (2) OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, BY IMPOSING A TAX OF FIFTEEN PER CENT (15%) ON INTEREST ON FOREIGN LOANS
WHEREAS, it is imperative to adopt measures responsive to the requirements of a developing economy, foremost of which is the speedy restructuring of the social, economic and political institutions of the country.
WHEREAS, the economic development of this country needs funding from domestic and foreign sources;
WHEREAS, in order to attract loans from foreign countries, an appropriate tax on their income should be levied on interest earned and remitted abroad;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, do hereby decree and order that Sections 24 (b) (1) and 53 (b) (2) of the National Internal Revenue Code,...
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