Presidential Decree No. 439 (PD 439) — Providing for Tax Holidays for Overseas Filipinos as Contemplated in Letter of Instruction Numbers 105 and 163
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. 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.
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.
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.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
