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(c) Borrowing and lending of securities executed
under the Securities Borrowing and lending Program of a registered
exchange, or in accordance with regulations prescribed by the
appropriate regulatory authority: Provided, however, That any
borrowing or lending of securities agreement as contemplated hereof
shall be duly covered by a master securities borrowing and lending
agreement acceptable to the appropriate regulatory authority, and
which agreements is duly registered and approved by the Bureau of
Internal Revenue. (BIR).
(d) Loan agreements or promissory notes, the aggregate of which does
not exceed Two hundred fifty thousand pesos (P250,000), or any such
amount as may be determined by he Secretary of Finance, executed by
an individual for his purchase on installment for his personal use
or that of his family and not for business or resale, barter or hire
of a house, lot, motor vehicle, appliance or furniture: Provided,
however, That the amount to be set by the Secretary of Finance shall
be in accordance with a relevant price index but not to exceed ten
percent (10%) of the current amount and shall remain in force at
least for three (3) years.
(e) Sale, barter or exchange of shares of stock listed and traded
through the local stock exchange for a period of five (5) years from
the effectivity of this Act.
(f) Assignment or transfer of any mortgage, lease or policy of
insurance, or the renewal or continuance of any agreement, contract,
charter, or any evidence of obligation or indebtedness, if there is
no change in the maturity date or remaining period of coverage from
that of the original instrument.
(g) Fixed income and other securities traded in the secondary market
or through an exchange.
(h) Derivatives: Provided, That for purposes of this exemption,
repurchase agreements and reverse repurchase agreements shall be
treated similarly as derivatives.
(i) Interbranch or interdepartmental advances within the same legal
entity.
(j) All forebearances arising from sales or service contracts
including credit card and trade receivables: Provided, That the
exemption be limited to those executed by the seller or service
provider itself.
(k) Bank deposit accounts without a fixed term or maturity.
(l) All contracts, deeds, documents and transactions related to the
conduct of business of the Banko Sentral ng Pilipinas.
(m) Transfer of property pursuant to Sec. 40(c)(2) of the National
Internal Revenue Code of 1997, as amended.
(n) Interbank call loans with maturity of not more than seven (7)
days to cover deficiency in reserves against deposit liabilities,
including those between or among banks and quasibanks."
Sec. 10. Implementing Rules and Regulations - The Secretary of
Finance, the Bangko Sentral Governor and the Securities and Exchange
Commission Chairperson shall promulgate and publish the necessary
rules and regulations for the effective enforcement of this Act.
Sec. 11. Separability Clause. - If any provision of this Act is held
unconstitutional or invalid, all other provisions not affected
thereby shall remain valid.
Sec. 12. Repealing Clause. - All laws, decrees, executive orders,
rules and regulations or parts thereof, which are inconsistent with
this Act, are hereby repealed, amended or modified accordingly.
Sec. 13. Effectivity. - This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or in two (2)
newspapers of general circulation.
Approved: February 17, 2004
REPUBLIC ACT NO. 9238
AN ACT AMENDING CERTAIN SECTIONS OF THE NATIONAL INTERNAL REVENUE
CODE OF 1997, AS AMENDED, BY EXCLUDING SEVERAL SERVICES FROM THE
COVERAGE OF THE VALUE-ADDED TAX AND RE-IMPOSING THE GROSS RECEIPTS
TAX ON BANKS AND NON-BANK FINANCIAL INTERMEDIARIES PERFORMING
QUASI-BANKING FUNCTIONS AND OTHER NON-BANK FINANCIAL INTERMEDIARIES
BEGINNING JANUARY 01, 2004.
Section 1. Sec. 108 of the National Internal Revenue Code of 1997,
as amended, is hereby further amended to read as follows:
"(A) Rate and Base of Tax. – There shall be levied, assessed and
collected, a value-added tax equivalent to ten percent (10%) of the
gross receipts, derived from the sale or exchange of services,
including the use or lease of properties.
"The phrase 'sale or exchange of services' means the performance of
all kinds of services in the Philippines for others for a fee,
remuneration or consideration, including those performed or rendered
by construction and service contractors; stock, real estate,
commercial, customs and immigration brokers; lessors of property,
whether personal or real; warehousing services; lessors or
distributors of cinematographic films; persons engaged in milling,
processing, manufacturing or repacking goods for others;
proprietors, operators or keepers of hotels, motels, resthouses,
pension houses, inns, resorts; proprietors or operators of
restaurants, refreshment parlors, cafes and other eating places,
including clubs and caterers; dealers in securities; lending
investors; transportation contractors on their transport of goods or
cargoes, including persons who transport goods or cargoes for hire
and other domestic common carriers by land, air and water relative
to their transport of goods or cargoes; services of franchise
grantees of telephone and telegraph, radio and television
broadcasting and all other franchise grantees except those under
Section 119 of this Code; [services of banks, non-bank financial
intermediaries and finance companies;] and non-life insurance
companies (except their crop insurances), including surety,
fidelity, indemnity and bonding companies; and similar services
regardless of whether or not the performance thereof calls for the
exercise or use of the physical or mental faculties. The phrase
"sale or exchange of services" shall likewise include:
(1) The lease or the use of or the right or privilege to use any
copyright, patent, design or model plan, secret formula or process,
goodwill, trademark, trade brand or other like property or right;
(2) The lease or the use of, or the right to use of any industrial,
commercial or scientific equipment;
(3) The supply of scientific, technical, industrial or commercial
knowledge or information;
(4) The supply of any assistance that is ancillary and subsidiary to
and is furnished as a means of enabling the application or enjoyment
of any such property, or right as is mentioned in subparagraph (2)
or any such knowledge or information as is mentioned in subparagraph
(3);
(5) The supply of services by a nonresident person or his employee
in connection with the use of property or rights belonging to, or
the installation or operation of any brand, machinery or other
apparatus purchased from such non resident person;
(6) The supply of technical advice, assistance or services rendered
in connection with technical management or administration of any
scientific, industrial or commercial undertaking, venture project or
scheme;
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