Further Amending Republic Act No. 3538 By Extending Tax Exemptions To Non-Filipino Personnel Of The American Kor-Asian Foundation Inc.

Case Overview and Summary

Summary of Presidential Decree No. 1129

Extension of Tax Exemptions to Non-Filipino Personnel of the American Kor-Asian Foundation Inc.

- Section 27(E) of Presidential Decree No. 69, as amended, exempts corporations or associations organized and operated exclusively for charitable purposes from tax.
- Republic Act No. 3538, as amended, exempts certain foundations like the Ford Foundation, Rockefeller Foundation, Agricultural Development Council, Inc., and Foster Parents Plan, Inc. from payment of gifts, franchise, specific percentage, real property taxes. It also exempts their foreign personnel from payment of income taxes.
- The American Kor-Asian Foundation, Inc. is exempted from payment of the above-mentioned taxes pursuant to Section 27(E) of Presidential Decree No. 69, as amended.
- As a matter of policy, non-Filipino personnel of foreign corporations or associations organized and operated exclusively for charitable purposes should be exempted from payment of income taxes on their salaries and stipends in dollars received by them for services rendered to said corporations or associations.

Provisions:

- Section 1: Notwithstanding any provision of law to the contrary, non-Filipino citizens serving on the staff of American Kor-Asian Foundation, Inc., an association organized exclusively for charitable purposes, shall be exempted from the payment of income taxes on their salaries and stipends in dollars received by them by reason of services rendered to the American Kor-Asian Foundation, Inc.
- Section 2: This Decree shall take effect immediately.