Question & AnswerQ&A (Republic Act No. 2351)
The main purpose of Republic Act No. 2351 is to amend Republic Act No. 901 to subject the income of new and necessary industries to full payment of income tax, regulate tax exemption on importations by such industries, provide penalties for violation or misuse of exemptions, and address other related matters.
Any person, partnership, company, or corporation engaging in a new and necessary industry subsequent to the approval of the Act is entitled to tax exemptions.
Exemptions are as follows: full exemption until December 31, 1958; 90% exemption during 1959; 75% in 1960; 50% in 1961; 10% in 1962; after which full tax is applied.
Yes, income received from July 1, 1959, shall be subject to the full tax provided in Title II of the National Internal Revenue Code.
Machinery, spare parts, and raw materials of tax-exempt industries are exempt from taxes except for special import tax and new taxes, subject to investigation and approval by the Secretary of Finance, Secretary of Commerce and Industry, and the National Economic Council Chairman.
Companies or persons engaged in the processing of oil, gasoline, lubricants, and other similar fuels and by-products are excluded from tax exemptions.
No, the total number of years of exemption under both Republic Act No. 35 and this Act shall not exceed ten years.
Penalties include imprisonment of not less than five years but not exceeding ten years, fines from eight thousand to two hundred thousand pesos, and forfeiture of exemption privileges.
Yes, officials or employees who connive, abet, or tolerate violations shall suffer penalties including imprisonment, fines, and perpetual disqualification from holding public office.
Officials who consented to the offense or who knew but failed to object will be held liable as persons responsible.
The grantee shall be considered the importer of such goods and will be subject to all taxes imposed on those importations.
No, no provision of this Act shall be interpreted to condone any previous acts in violation of existing laws, rules, or regulations.