AUTHORIZING THE EXEMPTION FROM PAYMENT OF GIFT TAXES AND RECOGNIZING AS DEDUCTIBLE BUSINESS EXPENSE ITEM IRREVOCABLE DONATIONS TO THE NATIONAL DEVELOPMENT COMPANY OF AMERICAN-OWNED PRIVATE LANDS ACQUIRED UNDER THE LAUREL-LANGLEY AGREEMENT.

• Number: Presidential Decree No. 698
• Sections: 3

Section 1

SECTION 1. The provisions of any existing law to the

contrary notwithstanding, irrevocable donations to the National

Development Company of American-owned private lands acquired under the

Laurel-Langley Agreement shall be exempt from all kinds of gift taxes.

Section 2

SEC. 2. Above mentioned donations shall likewise be

recognized as a deductible business expense item for income tax

purposes, provided that the donor shall expressly indicate in the

donation proposal the period not exceeding four (4) years, including the

year of donation, over which the expense deductions shall be taken in

equal increments.

Section 3

SEC. 3. Incentives provided under this Decree shall be

available only to donors who submit formal donation proposals to

the National Development Company before May 27, 1975.

This Decree shall take effect immediately.

Done in the City of Manila, this 9th day of May, in the year

of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary