PRESIDENTIAL DECREE No. 698

AUTHORIZING THE EXEMPTION FROM PAYMENT OF GIFT TAXES AND RECOGNIZING AS DEDUCTIBLE BUSINESS EXPENSE ITEM IRREVOCABLE DONATIONS TO THE NATIONAL DEVELOPMENT COMPANY OF AMERICAN-OWNED PRIVATE LANDS ACQUIRED UNDER THE LAUREL-LANGLEY AGREEMENT

I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree that:

Section 1. The provisions of any existing law to the contrary notwithstanding, irrevocable donations to the National Development Company of American-owned private lands acquired under the Laurel-Langley Agreement shall be exempt from all kinds of gift taxes.

Section 2. Abovementioned donations shall likewise be recognized as a deductible business expense item for income tax purposes, provided that the donor shall expressly indicate in the donation proposal the period not exceeding four (4) years, including the year of donation, over which the expense deductions shall be taken in equal increments.

Section 3. Incentives provided under this Decree shall be available only to donors who submit formal donation proposals to the National Development Company before May 27, 1975.

This Decree shall take effect immediately.

DONE in the City of Manila, this 9th day of May, in the year of Our Lord, nineteen hundred and seventy-five.