Incentives to Investors in a Registered Enterprise.
Section 5
SEC. 5. Incentives to Investors in a Registered Enterprise.—An investor, with respect to his investment in a registered enterprise, shall be granted the following incentive benefits: (a)Protection of Patents and Other Proprietary Rights.—The right to be protected from infringement of patents, trademarks, copyright, trade names, and other proprietary rights, where such patents, trade marks, copyright, trade names, and other propriety rights have been registered with the Board and the appropriate agencies of the Government of the Philippines. (b)Capital Gains Tax Exemption.—Exemption from income tax on that portion of the gains realized from the sale, disposition, or transfer of capital assets, as defined in Section thirty-four of the National Internal Revenue Code, that corresponds to the portion of the proceeds of the sale that is invested in new issues of capital stock of a registered enterprise within six months from the date the gains were realized: Provided, (1) that the said sale, disposition or transfer and the investment of the proceeds thereof have been registered with the Board and the Bureau of Internal Revenue; and (2) that the shares of stock representing the investment are not disposed of, transferred, assigned, or conveyed for a period of five years from the date the investment was made. If such shares of stock are disposed of within the said period of five (5) years, all taxes due on the gains realized from the original transfer, sale or disposition of the capital assets shall immediately become due and payable.