Presidential Decree No. 745 (PD 745) — Liberalizing the Financing and Credit Terms for Low Cost Housing Projects of Domestic Corporations and Partnerships.
WHEREAS, the Philippine Constitution provides the State
shall establish, maintain and ensure adequate social services in the
field of housing to guarantee the enjoyment of the people of a decent
standard of living;
WHEREAS, the housing problem of the country has grown into a
critical magnitude requiring the immediate and concrete institution of
measures which can meet the needs of Filipino families for decent
dwellings;
WHEREAS, the need to resolve the housing problem therefore
calls for a joint venture between the government and the private sector;
WHEREAS, it is incumbent upon the Government to harness and
promote housing ventures in terms of capital expenditures, land,
expertise and financing including the provision for incentives and
facilities to broaden the private sector participation in housing
investment;
WHEREAS, there are domestic corporations and partnerships
which are willing or already have plans to provide housing
accommodations for their employees and workers but are stymied by
financial difficulties particularly by the inability of their employees
and workers to pay the amortization or rental rates (in the case of
company housing) even at subsidized rates;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution do
hereby decree and order the following:
SECTION 1. The GSIS and the SSS shall undertake the
necessary measures to liberalize financing and credit terms for low cost
housing that may be proposed by domestic corporations and partnerships
with at least three hundred employees or workers, organized and existing
under Philippine laws, operating for profit, exclusively for their
employees and workers under any or all of the following schemes:
Low interest rates.
Lengthening of repayment period.
Adoption of a graduated amortization scheme in
such a way that smaller amortizations are paid during initial period
of repayment; and
Government subsidy of a portion of the interest payment.
SEC. 2. Domestic corporations or partnerships as defined
above which invest a portion of their funds in housing for their
employees and workers shall be allowed a fairly reasonable margin of
profit if lots and dwelling units are to be sold to the employees and
the workers on easy installment terms; or if the dwelling units be
leased to the employees and workers on a monthly rental basis.
SEC. 3. Pursuant to the above incentives, such domestic
corporations and partnerships shall enjoy tax exemptions on:
Real estate taxes on the improvements which will
he used exclusively for housing their employees workers;
and
Taxes on income derived from the installment sales
of houses to employees and workers of the company or
income derived from rentals thereof.
SEC. 4. All laws, orders and decrees as well as rules and
regulations inconsistent herewith are hereby repealed and/or modified
accordingly.
SEC. 5. This order shall take effect
immediately.
Done in the City of Manila, this 15th day of July, 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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
