Levying A Surtax On Extraordinary Gains Realized By Oil Companies On Petroleum Products
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Levying A Surtax On Extraordinary Gains Realized By Oil Companies On Petroleum Products
Presidential Decree No. 1709
August 1, 1979
Case Overview and Summary
Summary of Presidential Decree No. 1709Surtax on Extraordinary Gains of Oil Companies
- Imposes a 20% surtax on extraordinary gains realized by oil companies from authorized price and tax increases on petroleum products (Section 1)
- Surtax is in addition to regular income tax and not deductible for income tax purposes (Section 1)
Computation of Extraordinary Gains
- Extraordinary gain is the difference between old and new posted wholesale prices, multiplied by units of petroleum products on hand (Section 2)
- Includes gains from price increases and upward revision of specific tax rates (Section 2)
- Gain is deemed realized in the quarter when price increases occurred (Section 2)
Payment of Surtax
- Surtax must be paid within 30 days of the Decree's promulgation (Section 3)
- Oil companies can use receivables from Crude Equalization Fund as credits to offset surtax liability (Section 3)
- Tax return must be filed with relevant tax office where company's books are kept (Section 3)
- Installment payments may be allowed per rules and regulations (Section 3)
Penalties
- Failure to pay tax, file return, and other violations are subject to surcharges, interests, and penalties under the Tax Code (Section 4)
Investment of Remaining Gains
- Oil companies must prepare a program to invest remaining gains in projects to increase refining, storage, and distribution capacity (Section 5)
Rules and Regulations
- Minister of Finance, upon recommendation of Commissioner of Internal Revenue and consultation with Minister of Energy, shall issue rules and regulations (Section 6)
Repealing Clause and Effectivity
- Inconsistent laws, decrees, orders are repealed or modified (Section 7)
- Decree applies to extraordinary gains realized beginning August 1, 1979 (Section 8)
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Levying A Surtax On Extraordinary Gains Realized By Oil Companies On Petroleum Products
Presidential Decree No. 1709
•August 1, 1979
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1709
LEVYING A SURTAX ON EXTRAORDINARY GAINS REALIZED BY OIL COMPANIES ON PETROLEUM PRODUCTS
WHEREAS, the grant of immediate price increase on the whole range of refined or blended petroleum products, oil companies derived extraordinary gains from the sale at higher prices of finished products processed from crude oil and other base stocks acquired at lower prices;
WHEREAS, a part of such extraordinary gains should be remitted to the Government for the benefit of a greater number of our people and the balance of such gains be devoted by the oil companies in projects designated to improve the capacity and efficiency of their facilities;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:
Section 1. Surtax on Extraordinary Gains; Rate of Surtax. In addition to the income tax imposed under the Title II of National Internal Revenue Code, there is hereby imposed a surtax of twenty (20%)...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
surtax
extraordinary gains
oil companies
petroleum products
price increases
tax increases
computation
payment
tax return
penalties
investment
refining capacity
storage capacity
distribution capacity
rules and regulations
repealing clause
effectivity date
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1709
LEVYING A SURTAX ON EXTRAORDINARY GAINS REALIZED BY OIL COMPANIES ON PETROLEUM PRODUCTS
WHEREAS, the grant of immediate price increase on the whole range of refined or blended petroleum products, oil companies derived extraordinary gains from the sale at higher prices of finished products processed from crude oil and other base stocks acquired at lower prices;
WHEREAS, a part of such extraordinary gains should be remitted to the Government for the benefit of a greater number of our people and the balance of such gains be devoted by the oil companies in projects designated to improve the capacity and efficiency of their facilities;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:
Section 1. Surtax on Extraordinary Gains; Rate of Surtax. In addition to the income tax imposed under the Title II of National Internal Revenue Code, there is hereby imposed a surtax of twenty (20%)...
Login to see full content