Indefinitely Suspending the Effectivity of Presidential Decree No. 779 Which Imposes a Schedular Capital Gains Tax on Stock Transactions
Presidential Decree No. 1116, issued on April 15, 1977, indefinitely suspends the effectivity of Presidential Decree No. 779, which had imposed a schedular capital gains tax on stock transactions. The suspension is aimed at encouraging trading in shares of stock to promote economic development, as the previously imposed tax was seen as a potential deterrent. The decree is effective retroactively from January 1, 1976. This action reflects the government's intention to enhance capital generation through increased stock market activity.
Law Information
- Reference Number
- Presidential Decree No. 1116
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Presidential Decrees
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
April 15, 1977
PRESIDENTIAL DECREE NO. 1116
INDEFINITELY SUSPENDING THE EFFECTIVITY OF PRESIDENTIAL DECREE NO. 779 WHICH IMPOSES A SCHEDULAR CAPITAL GAINS TAX ON STOCK TRANSACTIONS
WHEREAS, it is necessary to encourage transactions in shares of stock in order to generate more capital for economic development;
WHEREAS, the imposition of the schedular capital gains tax as provided by P.D. No. 779 which amended Section 34 of the National Internal Revenue Code, might adversely affect trading in shares of stock. cd i
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 as follows:
SECTION 1. The effectivity of P.D. No. 779 imposing a schedular income tax on capital gains arising from stock transactions is hereby suspended indefinitely.
SECTION 2. Effectivity.— This Decree shall take effect retroactively from January 1, 1976.
DONE in the City of Manila, this 15th day of April, in the year of Our Lord, Nineteen Hundred and Seventy-Seven.
Published in the Official Gazette, Vol. 73 No. 24 Page 5130 on June 13, 1977.
Cite This Law
Indefinitely Suspending the Effectivity of Presidential Decree No. 779 Which Imposes a Schedular Capital Gains Tax on Stock Transactions, Presidential Decree No. 1116, Apr 15, 1977 (Philippines)
Indefinitely Suspending the Effectivity of Presidential Decree No. 779 Which Imposes a Schedular Capital Gains Tax on Stock Transactions, Presidential Decree No. 1116 (Phil. 1977)
Related Laws
- Amendments to Section 34 of, and Insertion of Subsection 34(g) to, NIRCPresidential Decree No. 779 • Aug 25, 1975 • Presidential Issuances
- Limiting the Substantiation Requirements in Determining the Capital Gains on Stock TransactionsLetter of Instructions No. 1133 • May 21, 1981 • Presidential Issuances
- Reducing the Percentage Tax on Stock TransactionsPresidential Decree No. 10 • Oct 3, 1972 • Presidential Issuances
- Amending P.D. No. 27 Re: Exemption of Landowner from Capital Gains TaxPresidential Decree No. 57 • Nov 19, 1972 • Presidential Issuances
- Amendments to Section 34 (B) of NIRC, As Amended Re: Exemption of Capital GainsPresidential Decree No. 16 • Oct 5, 1972 • Presidential Issuances
- Levying a Surtax on Extraordinary Gains Realized by Oil Companies from Petroleum ProductsPresidential Decree No. 1867-A • Jul 1, 1983 • Presidential Issuances
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