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Republic Act
Approved June 20, 1964

Republic Act No. 4146

Republic act no. 4146

Republic Act No. 4146

In plain language

Republic Act No. 4146 amends Section 2 of the Philippine Overseas Shipping Act of 1955 (RA 147) to provide tax exemptions for Philippine citizens and Philippine-registered corporations engaged in overseas shipping and modern boat construction, subject to investment requirements of net profits into vessels and equipment.

  • Tax exemption for overseas shipping income for 10 years plus 5 additional years
  • Eligibility: Philippine citizens or corporations with at least 60% Philippine-owned capital
  • Requirement to reinvest net profits in vessels, equipment, and vessel improvement
taxation
shipping
overseas
income tax
amendment

REPUBLIC ACT No. 4146

AN ACT TO AMEND SECTION TWO OF REPUBLIC ACT NUMBERED FOURTEEN HUNDRED AND SEVEN, ENTITLED "AN ACT TO BE KNOWN AS `THE PHILIPPINE OVERSEAS SHIPPING ACT OF NINETEEN HUNDRED AND FIFTY-FIVE."

Section 1

Section two of Republic Act Numbered Fourteen hundred and seven is amended to read as follows:

"Sec. 2. In pursuance of the above-declared policy any citizen of the Philippines, or any association or corporation organized under the laws of the Philippines, at least sixty per cent of the capital of which is owned by citizens of the Philippines, engaged or which shall engage exclusively in the overseas shipping business, or in the construction of modern boats for overseas service shall be exempt from the payment of income tax on income derived from his or its overseas shipping business for a period of ten years from the date of approval of this Act and for another five years after the expiration of said period, provided that all those who avail themselves of the loan assistance in this Act shall invest all net profits realized during that period in the construction, purchase, or acquisition of additional vessels and equipment and/or in the improvement of its vessels and equipment."

Section 2

This Act shall take effect upon its approval.

Approved: June 20, 1964

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.