PROVIDING FOR TAX HOLIDAYS FOR OVERSEAS FILIPINOS AS CONTEMPLATED IN LETTER OF INSTRUCTION NUMBERS 105 AND 163

• Number: Presidential Decree No. 439
• Sections: 5

Preamble

WHEREAS, the Homecoming Program for Overseas Filipinos under

Letter of Instruction No. 105, issued 31 July 1973, otherwise known as

the Balikbayan Program has been an overwhelming success and in

compliance with numerous requests and petitions for extension, the same

has been extended to 31 August 1974 to enable more of our overseas

countrymen and their families or their descendants to visit or settle in

their motherland; and

WHEREAS, it is desirable to grand additional incentives to

the temporary tax holiday benefits under Letter of Instruction Nos. 105

and 163;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution,

do hereby order and decree:

Section 1

SECTION 1. Provisions of Section 105 of the Tariff and

Customs Code, as amended, to the contrary notwithstanding, professional

instruments and implements, tools of trade, occupation or employment,

wearing apparel, domestic animals, and personal and household effects

belonging to persons coming to settle in the Philippines or Filipinos

and/or their families and descendants who are now residents or citizens

of other countries, such parties hereinafter referred to as Overseas

Filipinos, in quantities and of class suitable to the profession, rank

or position of the person importing them, for their own use and not for

barter or sale, accompanying such persons, or arriving within a

reasonable time, in the discretion of the Collector of Customs, before

or after the arrival of their owner, which arrival shall not be later

than August 31, 1974, upon the production of evidence satisfactory to

the Collector of Customs that such persons are actually coming to settle

in the Philippines, that change of residence was bona fide and that the

privilege of free entry was never granted to them before or that such

person qualifies under the provisions of Letter of Instruction Nos. 105

and 163m and that the articles are brought from their former place of

abode, shall be exempt from the payment of customs duties and taxes: Provided,

That vehicles, vessels, aircraft, machineries and other similar

articles for use in manufacture, shall not be classified hereunder.

Section 2

SEC. 2. Provisions of Sections 184, 184-A, 185-B, 186,

186-A, and 186-B of the National Internal Revenue Code, as amended, to

the contrary notwithstanding, Overseas Filipinos as herein defined who

are coming to settle permanently in the Philippines may purchase locally

manufactured vehicles, household appliances, professional instruments

and other tools of trade, occupation or employment, free of internal

revenue taxes: Provided, That

Such items are purchased from authorized dealers and are brand

new;

In the case of vehicles, that the same are registered

under the Progressive Car Manufacturing Program;

In the case of household appliances, professional instruments

and other tools of trade, occupation or employment, that the same are

locally manufactured and/or assembled;

That the purchases are made locally and in United States

currency;

That the purchases are made within a period of six (6) months

from date of arrival.

Section 3

SEC. 3. The Secretary of Finance, the Commissioner of

Customs, the Commissioner of Internal Revenue, and the Central Band of

the Philippines shall issue the rules and regulations to implement this

Decree.

Section 4

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of April, in the

year or Our Lord, nineteen hundred and seventy-four.

(Sgd.) FERDINAND E.

MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO

MELCHOR

Executive Secretary