Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 675)
Presidential Decree No. 675 grants a descending rate of discount on the realty tax for properties directly and exclusively used for educational purposes, starting from the calendar year 1975.
All land, buildings, and other improvements directly and exclusively used for educational purposes are covered under this Decree.
No, properties directly and exclusively used for educational purposes shall only pay the basic realty tax and are exempt from the additional one per cent tax to the Special Education Fund.
Yes, properties located within the Metropolitan Manila area are subject to an additional real property tax of one-eighth of one per cent of their assessed value, which goes to the Greater Manila Metropolitan Area Flood Control and Drainage Fund.
A 60% discount for tax due in 1975, 40% discount for tax due in 1976, and 20% discount for tax due in 1977 are granted if the tax is paid in full within the prescribed period.
It must be paid within the prescribed period of payment as provided under Section 60 of Presidential Decree No. 464.
The Secretary of Finance is tasked with formulating the rules and regulations for its proper implementation.
The Decree took effect on January 1, 1975.
All laws, decrees, orders, rules, and regulations inconsistent with this Decree were repealed or modified accordingly.
To allow educational institutions ample time to restructure their finances and meet tax obligations promptly without unduly increasing the cost of education.