Amending Revenue Regulations No. 7-72, implementing Presidential Decree No. 16 dated October 5, 1972, as amended

November 16, 1972 REVENUE REGULATIONS NO. 07-A-72 SUBJECT : Amending Revenue Regulations No. 7-72, implementing Presidential Decree No. 16 dated October 5, 1972, as amended TO : All Internal Revenue Officers and others concerned Section four of Revenue Regulations No. 7-72 is hereby amended to read as follows: "Sec. 4. Conditions and requisites for exemption . In order to avail of the benefits of exemption on the gains realized that corresponds to the proceeds of the sale, disposition, transfer or exchange of capital assets, the following conditions must be met: A. The proceeds of the transaction must be invested, as initial capital, additional capital contribution or in new issues of capital stocks in any of the preferred areas of productive undertaking, to wit: 1. BOI registered enterprises; 2. NACIDA promoted industries; 3. BTTI sponsored tourist oriented projects; 4. Export oriented industries; 5. Banks: Rural, Private Development, Commercial; 6. Utilities: transport, communication, power; 7. Agricultural cooperatives; 8. Livestock and other agricultural development projects; 9. Foreign equity in domestic/resident corporations; 10. Insurance companies; or utilized in the purchase of new issues of the following instruments: 1. Government bonds; 2. Government securities other than treasury bills: 3. Government debentures; 4. Treasury notes. B. Such investments must be made within six (6) months from the date the gain is realized. The shares of capital stocks or government issues representing the investment are not to be disposed of, transferred, assigned or conveyed within a period of three (3) years from the date of said investment." These regulations shall take effect immediately. cdt CESAR VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue