AMENDING PRESIDENTIAL DECREE NO. 16, DATED OCTOBER 5, 1972, ENTITLED, “AMENDING SECTION 34 (b) OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, EXEMPTING CAPITAL GAINS, EXCEPT…

Paragraph five of Presidential Decree No. 16, dated October 5, 1972,
is hereby amended to read as follows:

“SEC. 34(b) — In the case of a taxpayer, other than a corporation,
no gain or loss will be recognized on the portion of the gains realized
that corresponds to the portion of the proceeds of the sale, disposition
or transfer of capital assets, except shares of stocks of corporation
covered in Section 4 of Republic Act No. 6141, invested in capital
stocks of preferred productive enterprises or in the purchase of new
issues of government bonds, securities, debentures and notes other than
treasury bills, within six (6) months from the date the gains were
realized: Provided, That the shares of stock or government
instruments representing the investments are not disposed of,
transferred, assigned or conveyed for a period of three (3) years from
the date the investment was made, otherwise all the taxes due on the
gains realized from the original transfer, sale or disposition of the
capital assets shall immediately become due and payable.” Presidential
Decree No. 16, dated October 5, 1972, and regulations part thereof
inconsistent herewith are hereby revoked or amended accordingly.

Done in the City of Manila, this 5th day of October, in the year of
Our Lord, nineteen hundred and seventy-two.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ALEJANDRO MELCHOR
		Executive Secretary