Amendment to P.D. No. 16
Presidential Decree No. 16-A, issued on October 5, 1972, amends the provisions of Presidential Decree No. 16 concerning capital gains taxation. It specifies that individual taxpayers will not recognize gains or losses from the sale of capital assets if the proceeds are reinvested in preferred productive enterprises or certain government securities within six months. However, these investments must not be disposed of for three years; otherwise, taxes on the original gains will become due immediately. The decree also revokes any inconsistent regulations from the previous law.
Law Information
- Reference Number
- Presidential Decree No. 16-A
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Presidential Decrees
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
October 5, 1972
PRESIDENTIAL DECREE NO. 16-A
AMENDING PRESIDENTIAL DECREE NO. 16 DATED OCTOBER 5, 1972, ENTITLED, "AMENDING SECTION 34(b) OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, EXEMPTING CAPITAL GAINS, EXCEPT SHARES OF STOCKS OR CORPORATIONS UNDER SECTION 4 OF REPUBLIC ACT NO. 6141, UNDER CERTAIN CONDITIONS"
Paragraph five of Presidential Decree No. 16 dated October 5, 1972, is hereby amended to read as follows: aisa dc
"Sec. 34(b). In the case of a taxpayer, other than a corporation, no gain or loss will be recognized on the portion of the gains realized that corresponds to the portion of the proceeds of the sale, disposition or transfer of capital assets, except shares of stocks of corporation covered in Section 4 of Republic Act No. 6141, invested in capital stocks of preferred productive enterprises or in the purchase of new issues of government bonds, securities, debentures and notes other than treasury bills, within six (6) months from the date the gains were realized: Provided, That the shares of stocks or government instruments representing the investments are not disposed of transferred, assigned or conveyed for a period of three (3) years from the date the investment was made, otherwise all the taxes due on the gains realized from the original transfer, sale or disposition of the capital assets shall immediately become due and payable."
Presidential Decree No. 16 dated October 5, 1972 and regulations part thereof inconsistent herewith are hereby revoked or amended accordingly.
DONE in the City of Manila, this 5th day of October, in the year of Our Lord, Nineteen Hundred and Seventy-Two.
Cite This Law
Amendment to P.D. No. 16, Presidential Decree No. 16-A, Oct 5, 1972 (Philippines)
Amendment to P.D. No. 16, Presidential Decree No. 16-A (Phil. 1972)
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