Republic Act No. 6488

: The primary purpose of Republic Act No. 1823 is to exempt certain profits and surplus improperly accumulated by corporations from the additional corporate income tax under specific conditions.
: Republic Act No. 1823 amends Subsection (a), Section 25 of the National Internal Revenue Code.
: The additional tax rate imposed is twenty-five percent (25%) of the undistributed portion of accumulated profits or surplus.
: Banks, insurance companies, and personal holding companies are exempt from this additional tax.
: The tax is imposed on corporations formed or availed of to prevent the imposition of tax on their shareholders by allowing profits to accumulate instead of being distributed.
: The additional tax is imposed for each taxable year on the undistributed portion of accumulated profits or surplus.
: Accumulated profits or surplus are exempt if invested in any dollar-producing or dollar-saving industry or in bonds issued by the Central Bank of the Philippines.
: The additional tax is computed, collected, and paid in the same manner and subject to the same provisions, including penalties, as the tax imposed by section 24 of the National Internal Revenue Code.
: Yes, it applies to both domestic and foreign corporations except those specifically exempted.
: It took effect upon its approval on June 22, 1957.