Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 57)
The purpose of Presidential Decree No. 57 is to amend Presidential Decree No. 27 to further accelerate the emancipation of tenants from the bondage of the soil by providing exemptions for landowners from certain taxes and encouraging the participation of financial institutions to support tenant-purchasers.
Landowners are exempt from the capital gains tax on the proceeds of amortizations paid by the tenant-purchasers and from income tax due on the accruing interests paid as an addition to the total cost of the land.
Rural banks and other financial institutions are required to actively participate in providing immediate sources of funds to augment loans or credits available to tenants and/or farmers cooperatives to support land ownership under the supervised credit program.
The Agricultural Guarantee Fund, constituted under Section 12 of Republic Act No. 6390, provides guarantee coverage to participating financial institutions under the same terms and conditions as those applied to the rural banking system, supporting loans to tenants or farmers.
Existing agricultural guarantee loan funds, wholly or partly funded by government agencies, shall be integrated into the Agricultural Guarantee Fund and governed by the rules promulgated by the Agricultural Guarantee Fund Board.
November 19, 1972, is the date when Presidential Decree No. 57 was signed into law by President Ferdinand E. Marcos, and when it took effect immediately.
President Ferdinand E. Marcos signed Presidential Decree No. 57.
Yes, Presidential Decree No. 57 amends or modifies all acts, orders, rules, and regulations inconsistent with its provisions accordingly.
Presidential Decree No. 57 is an amendment to Presidential Decree No. 27, which originally decreed the emancipation of tenants by transferring ownership of the land they till to them.