Clarification and Effectivity of Corporate Development Tax of 10%

April 2, 1981 BIR RULING NO. 065-81 24-e 000-00 065-81 Phil. Insulation Co., Inc. Room 605, Metropolitan Bank Bldg. Ayala Avenue, Makati Attention: Mr . Alfredo Limsico President Gentlemen : This refers to your letter dated February 25, 1981, requesting clarification on the effectivity of Section 24(c) of the Tax Code, as amended by Section 6 of Presidential Decree No. 1773 prescribing additional corporate development tax of 10%. In reply, I have the honor to inform you that the aforecited provision took effect on January 16, 1981, the date of approval of Presidential Decree No. 1773. Accordingly, the increased rate of 10% corporate development tax provided for in Section 6 thereof, amending Section 24(e) of the Tax Code, shall be effective and made applicable to net income of a domestic corporation or resident foreign corporation subject to said tax for the taxable year ending after January 16, 1981. cdta Very truly yours, RUBEN B. ANCHETA Acting Commissioner