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 political institutions of the country;
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, as amended, be further amended
by imposing a tax of fifteen percent (15%) on interest on foreign loans
earned beginning from January 1, 1973.
The Commissioner of Internal Revenue, upon approval by the
Secretary of Finance, shall promulgate the implementing regulations on
these amendments.
This Decree shall be effective immediately.
Done in the City of Manila, this 19th day of February, in the year of
Our Lord, nineteen hundred and seventy-three.
(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.) ALEJANDRO MELCHOR
Executive Secretary