Definition of personal holding company.
Section 64
SEC. 64. Definition of personal holding company.—(a.) General rule.—For the purpose of this Title, the term "personal holding company" means any corporation, as defined in Section 20 if— (b) Exceptions—The term "personal holding company" does not include a corporation, firm or association exempt from taxation under section 27, a bank duly licensed to do business as such in the Philippines, a life insurance company, or a foreign personal holding company as defined in section 67. (1) Gross income requirement.—At least eighty per centum of its gross income for the taxable year is personal holding company income as defined in Section 65, but if the corporation is a personal holding company with respect to any taxable year beginning after December thirty-first, nineteen hundred and thirty-eight, then, for each subsequent taxable year, the minimum percentage shall be seventy per centum in lieu of eighty, and it shall continue to be considered as a personal holding company until in a taxable year, during the whole of the last half of which, the stock ownership required by paragraph (2) does not exist, or until the expiration of three consecutive taxable years in each of which less than seventy per centum of the gross income is personal holding company income; and (2) Stock ownership requirement.—At any time during the last half of the taxable year more than fifty per centum in value of its outstanding stock is owned, directly or indirectly, by or for not more than five individuals.