WHEREAS, it is necessary to further amend the National
Internal Revenue Code, as amended, in order to make it responsive to the
requirements of the developing economy and encourage more capital
investments for large projects;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President 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, and General
Order No. 1, dated September 22, 1972, as amended, do hereby decree and
order as follows:
SECTION 1. Subsection (d) of Section 24 of the National
Internal Revenue Code, as amended by Presidential Decree No. 369, is
hereby further amended to read as follows:
"(d) Rate of tax on certain dividends. — Dividends
received by a domestic or resident foreign corporation from a domestic
corporation liable to tax under this Code shall be subject to tax at
8.75% on the total amount thereof, which shall be collected and paid as
provided in Sections 53 and 54 of this Code."
SEC. 2. All laws, rules and regulations which are
inconsistent herewith are hereby repealed, modified and/or amended
accordingly. SEC. 3. This Decree shall take effect immediately.
Done in the City of Manila, this 1st day of March, in the year of Our
Lord, nineteen hundred and seventy-four.
(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.) ALEJANDRO MELCHOR
Executive Secretary
