Section 4
SEC. 4. Section one hundred and twelve of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "SEC. 112. Exemption of certain gifts.—The following gifts or donations shall be exempt from the tax provided for in this Chapter. "(a) In the case of gifts made by a resident: "(1) Dowries or gifts made on account of marriage and before its celebration or within one year thereafter by parents to each of their legitimate, recognized natural, or adopted children to the extent of the first ten thousand pesos. "(2) Gifts made in favor of persons other than the spouse and the legitimate, recognized natural, or adopted children to the extent of the first one thousand pesos a year, or five per centum of the net income of the donor during the preceding year, whichever is the greater, but in no case shall the amount of exemption allowed under this paragraph exceed five thousand pesos. "(3) Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government. “(b) In the case of gifts made by a nonresident not a citizen of the Philippines: "Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government."