Law Summary
Existing Tax Exemptions Under Republic Act No. 3538
- Republic Act No. 3538 grants tax exemptions to specific charitable organizations including the Ford Foundation, Rockefeller Foundation, Agricultural Development Council, Inc., and Foster Parents Plan, Inc.
- These exemptions cover gifts, franchise, specific percentage, real property taxes.
- Foreign personnel employed by these organizations are exempted from paying income taxes.
Status of the American Kor-Asian Foundation, Inc.
- The American Kor-Asian Foundation, Inc. is recognized as a charitable organization under Section 27(E) of Presidential Decree No. 69, entitling it to tax exemptions similar to other foundations.
Policy on Non-Filipino Personnel Tax Exemption
- It is declared a policy that non-Filipino personnel working for foreign charitable corporations or associations should be exempt from income tax on their salaries and stipends.
- This exemption applies specifically to remuneration paid in U.S. dollars.
Specific Tax Exemption Provision (Section 1)
- Non-Filipino citizens employed by the American Kor-Asian Foundation, Inc. are exempted from income tax on salaries and stipends paid in dollars.
- This applies regardless of any law to the contrary.
Effectivity of the Decree (Section 2)
- The decree takes effect immediately upon promulgation.
Legal Authority
- The decree is issued under the constitutional powers vested in the President of the Philippines.
- Signed by President Ferdinand E. Marcos and authenticated by his Presidential Executive Assistant.