Descending Discount on Realty Tax for Education

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PRESIDENTIAL DECREE NO. 675: Descending Discount on Realty Tax for Education

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Title Source: Supreme Court: Descending Discount on Realty Tax for Education

Law: Presidential Decree No. 675

Decision Date: Mar 20, 1975

Presidential Decree No. 675 grants educational institutions a descending rate of discount on realty tax, allowing them to restructure their finances and fulfill tax obligations without significantly increasing the cost of education, except for properties in Metropolitan Manila.

Descending Discount Rates for Timely Payment

Taxpayers of educational properties who pay the basic real property tax in full within the prescribed period (as per Section 60 of Presidential Decree No. 464) receive discounts.
The discount rates are:
- 60% discount for tax due in the calendar year 1975.
- 40% discount for tax due in the calendar year 1976.
- 20% discount for tax due in the calendar year 1977.

Rationale and Policy Considerations

The decree acknowledges the financial impact of realty taxes on educational institutions.
It aims to give educational institutions sufficient time to adjust their financial arrangements to meet tax obligations.
Applying a descending rate of discount softens the immediate financial burden and encourages prompt payment.

Administrative Provisions

The Secretary of Finance is tasked to formulate rules and regulations to implement the decree effectively.
This decree took effect on January 1, 1975.

Repeal and Modification of Conflicting Laws

All existing laws, decrees, orders, rules, and regulations inconsistent with this decree are repealed or modified accordingly to ensure conformity with the new tax provisions on properties used exclusively for educational purposes.

END