Amendment to Philippine Overseas Shipping Act

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Republic Act No. 4146: Amendment to Philippine Overseas Shipping Act

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Title Source: Supreme Court: Amendment to Philippine Overseas Shipping Act

Law: Republic Act No. 4146

Decision Date: Jun 20, 1964

The Amendment to Republic Act No. 1407 provides a ten-year exemption from income tax for Filipino citizens, associations, and corporations engaged in the overseas shipping business, with an additional five-year exemption period, on the condition that all net profits are reinvested in vessels and equipment.

Ownership Requirements

For associations or corporations, at least 60% of the capital must be owned by Filipino citizens.

Tax Exemption Provision

Exempts qualified citizens, associations, or corporations from paying income tax on income derived from the overseas shipping business.
The tax exemption period lasts for ten years from the date of approval of the Act.
An additional tax exemption period of five years follows the initial ten years, making a total potential exemption period of fifteen years.

Conditions for Loan Assistance Beneficiaries

Entities availing themselves of loan assistance under this Act must reinvest all net profits earned during the tax exemption period.
Reinvestment must be directed towards:
- Construction, purchase, or acquisition of additional vessels and equipment.
- Improvement of existing vessels and equipment.

Effective Date

The Act takes effect immediately upon its approval.
The approval date referenced is June 20, 1964.

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