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DZPARTff tT O3WR NO. March 21, 1974 :UBJ,CT:

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Rules and regulations implementing Presidential Decree No. 391, dated February 16, 1974, entitled "Granting a.descending rate of discount on the real property tax on lands beginning with the calendar year 1974" All Provincial and City Treasurers and Assessors

For the proper and effective implementation of Presidential Decree No. 391, the following guidelines are hereby prescribed for strict compliance: 1. If the basic and additional real property tax or any quarterly installment thereof is paid in full within the prescribed period of payment, the taxpayer shall be granted a discount on the tax due as follows: 2O on the tax due and payable during the year 1974; 1% on the tax due and payable during the year 1975; 1O',; on the tax due and payable during the year 1976; and 5+ on the tax due and payable during the year 1977. Such discounts shall be properly reflected on the official receipts issued to taxpayers in acknowledgment of the realty taxes paid. The official receipt issued should indicate the correct amount of the tax due, the tax discount and the net amount paid. 2. The tax discount shall apply only to taxes due on lands and not on buildings, structures, machineries, fruit trees, and other improvements, and may be availed of only if the land has no tax delinquency in either or both the basic tax or the additional one percent tax levied under Republic Act No. 5447. 3. The tax discount shall not be granted to taxpayers who offer to pay only the current year tax on the land but refuse to pay the delinquent taxes thereon, or vice versa. Likewise, if the basic tax on the land is paid promptly but the taxpayer is deI/

linquent in the payment of the additional one percent realty tax thereon, or vice versa, no discount shall be allowed considering that the basic tax an well as the additional one percent realty tax shall be considered as one tax only; 4. The computation of the tax discount shall be based on the amount of the tax due and payable during the years 1974, 1975, 1976 and 1977 at the rates of twenty percent, fifteen percent, ten percent and five percent, respectively. The amount of the discounted tax after applying the corresponding allowable rate of discount shall in no case be lower than the tax due and payable on the land in 1973. 5. Taxpayers who have paid the annual tax or quarterly inetalleente on the land, whether based on the assessment obtain. ins in 1973 or those made pursuant to Presidential Decree Fig. 76, on or before the promulgation of Presidential Decree No. 391 shall be entitled to tax credits corresponding to the applicable rate of discount and which should be applied to future taxes on the same property. 6. Taxpayers who shall have paid the annual tax or quarterly installments on the land based on the assessment subsisting in 1973 for reason that they have not yet received the corresponding assessment notice thereon shall likewise be granted tax credit upon payment of the deficiency tax on the land to the amount of the allowable rate of tax discount, provided, however, that the difference of the tax on the land shall be paid within the quarter next following the date of their receipt of the corresponding notice of assessment thereof end provided, further, that the discounted tax shall not be lower than the tax due and payable on the land in 1973. The tax credit shall likewise be applied to future taxes on the same property. 7. Taxpayers entitled to tax credits shall be duly advised in writing of the existence of such tax credits. The notice shall contain, among other things, the amount of the tax credit,to which the taxpayer is entitled to and the quarterly application of such tax credit to his tax obligation; and 8. Discounts granted taxpayers shall be summarized monthly and entered in their respective books of accounts as a negative entry under a provisional revenue account classification denominated as "Realty Tax Discount", account symbol Ca-4(d) for the basic tax and DDA-4(d) for the special education tax (share of the Local School Board) for purposes of control and statistics. Provincial, city and municipal treasurers are hereby directed

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to post in public and other conspicuous places in their respective localities copies of thin Department Order for the information and guidance of the general public.

Provincial Treasurers are hereby directed to transmit the contents hereof to all municipal treasurers under their respective jurisdictions.

CESAR VIRATA Secretary/) -L

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FALAZ A Nahila PRESIDENTIAL DECREE NO. 321 GRANTING A DESCENDING RATE OF DISCOUNT ON THE REAL PROPERTY TAX ON SB-GAEENDAR YEAR 19Z t ; 3 'k + ' t'ANOS` BEC?IttNINE WHEREAS, with the application of the assessment levels fixed under Presidential Decree No. 76 on the different classes of lands

against the current and fair market values thereoflas determined by the local assessors, equity in the assessed valuation of lands has been attained; WHEREAS, as a result thereof, assessed valuation of lands has increased proportionately and equitably depending on the nature and use of the,property;

WHEREAS, increased assessment means increased real property taxes and, therefore, it is indicated that an equitable formula be adopted to afford real property owners to adjust their financial resources such that they would be in a position to!pay their real property taxes on time; NOW,'THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of the Arced Forces of the Philippines and pursuant to Proclamation No. 1081 dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby decree, order and make as part of the law of the land the following provisions:

1. If the basic and additional real property tax or any quarterly installment thereof is paid in full within the prescribed period of payment, the taxpayer shall be granted a discount on the tax due as follows 2C on the tax due and payable during the year 1974; 15% on the tax due and payable during the year 1975;

I 10% on the tax due and payable during the year 1976; and 5% on the tax due and payable during the year 1977. 2. The tax discount herein authorized shall apply only to lands and not to improvements, provided that:, only lands'without acv delinquency shall be granted the sane.: 3. In no case, however, shall the discounted tax be lower than the tax corresponding to the next preceding tax year.

The Secretary of Finance' shall formulate thelrules and regu-' lations for the proper implementation of this Decree. All laws, rules and regulations inconsistent. with this Decree are hereby repealed. Done in to City of Manila this 16th day of February in the year of out Lord, nineteet hundred and seventyafour. I (SGD.) FERDINAND1E. MARCOS President Republic of the Philippines