Further Amending Certain Provisions Of Republic Act Numbered Sixty-Four Hundred And Twenty-Six, As Amended By Presidential Decree Numbered One Thousand Thirty-Five.

Case Overview and Summary

Summary of Presidential Decree No. 1246

Amendments to Republic Act No. 6426 and Presidential Decree No. 1035

• Tax Exemptions (Section 1):
- All foreign currency deposits made under Republic Act No. 6426, as amended by Presidential Decree No. 1035, and foreign currency deposits authorized under Presidential Decree No. 1034, including interest and all other income or earnings, are exempted from any and all taxes.
- This exemption applies irrespective of whether the deposits are made by residents or non-residents.
- For non-residents, the exemption applies irrespective of whether or not they are engaged in trade or business in the Philippines.

• Confidentiality of Foreign Currency Deposits (Section 2):
- All foreign currency deposits authorized under Republic Act No. 6426, as amended by Presidential Decree No. 1035, and foreign currency deposits authorized under Presidential Decree No. 1034, are declared absolutely confidential.
- Except with the written permission of the depositors, these deposits shall not be examined, inquired into, or looked into by any person, government official, bureau, office, judicial or administrative body, or private entity.
- These deposits are exempt from attachment, garnishment, or any other order or process of any court, legislative body, government agency, or administrative body.

• Vested Rights and Amendatory Enactments (Section 3):
- If a new enactment or regulation decreases the rights granted under this Decree, it shall not apply to foreign currency deposits already made or existing at the time of issuance.
- The new enactment or regulation shall only apply to foreign currency deposits made after its issuance.