Publishing Presidential Decree No. 1955

October 12, 1984 REVENUE MEMORANDUM CIRCULAR NO. 25-84 SUBJECT : Publishing Presidential Decree No. 1955 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is published hereunder the full text of Presidential Decree No. 1955. "PRESIDENTIAL DECREE NO. 1955 "WITHDRAWING, SUBJECT TO CERTAIN CONDITIONS, THE DUTY AND TAX PRIVILEGES GRANTED TO PRIVATE BUSINESS ENTERPRISES AND/OR PERSONS ENGAGED IN ANY ECONOMIC ACTIVITY, AND FOR OTHER PURPOSES "WHEREAS, the current economic crisis amounts to a grave emergency which affects the stability of the nation and requires immediate action; "WHEREAS, the issuance of this decree is an essential and necessary component of the national economic recovery program formulated to meet and overcome the emergency; "WHEREAS, Section 20 of the Batas Pambansa Blg. 391, otherwise known as the Investment Incentives Policy Act of 1983, authorizes the President to restructure/rationalize all existing incentives systems/legislations to align them with overall economic development objectives and make them more responsive and meaningful to changing circumstances; cd "NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree: "Sec. 1. The provisions of any special or general law to the contrary notwithstanding, all exemptions from or any preferential treatment in the payment of duties, taxes, fees, imposts and other charges heretofore granted to private business enterprises and/or persons engaged in any economic activity, are hereby withdrawn, except those enjoyed by the following: "(a) Those registered by the Board of Investments under Presidential Decree No. 1789, as amended by Batas Pambansa Blg. 391, and those registered by the Export Processing Zone Authority under Presidential Decree No. 66, as amended by Presidential Decree Nos. 1449, 1776, 1776-A and 1786; "(b) The copper mining industry in accordance with the provisions of LOI 1416; "(c) Those governed by international agreements to which the Philippines is a signatory; "(d) Those covered by the non-impairment clause of the Constitution; and "(e) Those that will be approved by the President of the Philippines upon the recommendation of the Minister of Finance. "Sec. 2. The Ministry of Finance shall promulgate the necessary rules and regulations to effectively implement the provisions of this Decree. "Sec. 3. All other laws, decrees, executive orders, administrative orders, rules, regulations or parts thereof which are inconsistent with this Decree are hereby repealed, amended or modified accordingly. "Sec. 4. This Decree shall take effect on October 15, 1984. "DONE in the City of Manila, this 10th day of October, in the year of Our Lord, nineteen hundred and eighty-four. acd (SGD.) FERDINAND E. MARCOS President of the Philippines" Features of PD 1955 : The Presidential Decree withdraws all exemptions from or any preferential treatment in the payment of duties, taxes, fees, imposts and other charges heretofore granted to private business enterprises and/or persons engaged in any economic activities. The withdrawal of the tax exemptions and/or preferential tax treatment does not apply to the following: (a) Those registered by the Board of Investments under Presidential Decree No. 1789, as amended by Batas Pambansa Blg. 391, and those registered by the Export Processing Zone Authority under Presidential Decree No. 66, as amended by Presidential Decree Nos. 1449, 1776, 1776-A and 1786; (b) The copper mining industry in accordance with the provisions of LOI 1416; (c) Those covered by international agreements to which the Philippines is a signatory; (d) Those covered by the non-impairment clause of the Constitution; and cd (e) Those that will be approved by the President of the Philippines upon the recommendation of the Minister of Finance. aisa dc Beginning October 15, 1984, all persons heretofore enjoying exemptions from or any preferential treatment in the payment of internal revenue taxes shall be liable to pay the full amount of taxes imposed under the National Internal Revenue Code. All items of gross income, gross receipts, sales, output, etc., as well as importations of any article, which are subject to the income, percentage and miscellaneous taxes imposed under the Code, derived, received or realized on or after October 15, 1984 shall be reported or declared for tax purposes in accordance with the appropriate provisions of the Tax Code. All internal revenue officers and others concerned are enjoined to be guided accordingly, and to give this Circular as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner