Amendment to P.D. No. 1158, the National Internal Revenue Code of 1977

June 11, 1978 PRESIDENTIAL DECREE NO. 1540 AMENDING SECTION 24 (b) (1) OF THE NATIONALINTERNALREVENUECODE, FOR THE IMPOSITION OF A SPECIAL RATE OF WITHHOLDING TAX FOR RENTAL, LEASE OR CHARTER PAYMENTS FOR FOREIGN OWNED VESSELS UNDER CHARTER OR LEASED TO PHILIPPINE NATIONALS WHEREAS, it is declared national policy to encourage the acquisition of vessels by Philippine nationals for coastwise and international traffic; WHEREAS, chartering of foreign-owned ships is one of the means of acquisition with the least impact on foreign exchange and domestic capital; casia WHEREAS, it is necessary to adjust the withholding tax on the consideration for the lease and charter payable to foreign entities at a reasonable level from 35% to 45%. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following as part of the law of the land. SECTION 1. Section 24(b) (1) of the National Internal Revenue Code is hereby further amended by the insertion of a subsection which read as follows: aisa dc "Subsection (b) (1) (a) Rentals, lease and charter fees payable to non-resident owned of vessels chartered by Philippine nationals as the term is defined under section 3(c) of Presidential Decree No.474, and which charter or lease has been duly approved by the Maritime Industry Authority, shall be subject to 4.5% final tax, the return and payment of which shall be in accordance with sections 53 and 54 of the NationalInternalRevenueCode." SECTION 2. This Decree shall take effect immediately. DONE in the City of Manila, this 11th day of June, in the year of Our Lord, Nineteen Hundred and Seventy-Eight. Published in the Official Gazette, Vol. 75 No. 3 Page 442 on January 15, 1979.