1.) PRESIDENTIAL DECREE No.
198 May 25, 1973 corporations, shall pay income taxes, customs duties and
Section 45. Exemption from Taxes. - A district shall (1) be
exempt from paying income taxes, and (2) shall be exempt
from the payment of (a) all National Government, local
government and municipal taxes and fees, including any
franchise, filing, recordation, license or permit fees or taxes
and fees, charges or costs involved in any court of
administrative proceeding in which it may be a party and (b)
all duties or imposts on imported machinery, equipment
and materials required for its operations.
2.) PRESIDENTIAL DECREE No. 464 (Real Property Tax
Code) June 1, 1974
Section 40. Exemptions from Real Property Tax. The
exemption shall be as follows:
(a) Real property owned by the Republic of the
Philippines or any of its political subdivisions and
any government-owned corporation so exempt by
its charter: Provided; however, That this exemption
shall not apply to real property of the abovenamed
entities the beneficial use of which has been
granted, for consideration or otherwise, to a
taxable person.
3.) PRESIDENTIAL DECREE No. 776 August 24, 1975
Section 1. Any and all tax exemption benefits and privileges
validly acquired, exercised and granted to individuals,
associations, corporations and entities, and all laws,
decrees, orders or ordinances giving rise thereto, may now
be modified by the Fiscal Incentives Review Board except
those embraced and expressly provided hereunder, to wit:
1. Constitutional provisions
2. International comity or treaty
3. National Internal Revenue Code as of its
amendment by PD 69
4. Tariff and Customs Code as of its amendment by
PD 34
5. Local Tax Code as of its amendment by PD 426
6. Statutory prescription bearing on
(a) Export Processing Zone Authority
(b) BOI Registered industries
(c) Multi-national corporations
(d) Service contracts on oil explorations
4.) PRESIDENTIAL DECREE No. 1177 July 30, 1977
Section 23. Tax and Duty Exemptions. All units of
government, including government-owned or controlled
other taxes and fees as are imposed under revenue laws:
provided, that organizations otherwise exempted by law
from the payment of such taxes/duties may ask for a
subsidy from the General Fund in the exact amount of
taxes/duties due: provided, further, that a procedure shall
be established by the Secretary of Finance and the
Commissioner of the Budget, whereby such subsidiaries
shall automatically be considered as both revenue and
expenditure of the General fund.
5.) PRESIDENTIAL DECREE NO. 1931 June 11, 1984
6.) PRESIDENTIAL DECREE NO. 1955 October 14, 1984
Section 1.chanroblesnad The provisions of special or
general law to the contrary notwithstanding, all exemptions
from the payment of duties, taxes, fees, imposts and other
charges heretofore granted in favor of government-owned
or controlled corporations including their subsidiaries, are
hereby withdraw.
7.) EXECUTIVE ORDER NO. 93 December 17, 1986
Sec. 1. The provisions of any general or special law to the
contrary notwithstanding, all tax and duty incentives
granted to government and private entities are hereby
withdrawn, except:
a) those covered by the non-impairment clause of
the Constitution;
b) those conferred by effective international
agreements to which the Government of the
Republic of the Philippines is a signatory;
c) those enjoyed by enterprises registered with:
(i) the Board of Investments pursuant to
Presidential Decree No. 1789, as
amended;
(ii) the Export Processing Zone Authority,
pursuant to Presidential Decree No. 66, as
amended;
(iii) the Philippine Veterans Investment
Development Corporation Industrial
Authority pursuant to Presidential Decree
No. 538, as amended;
d) those enjoyed by the copper mining industry
pursuant to the provisions of Letter of Instruction
No. 1416;
e) those conferred under the four basic codes
namely:
(i) the Tariff and Customs Code, as
amended;
 (ii) the National Internal Revenue Code, as
amended;
(iii) the Local Tax Code, as amended;
(iv) the Real Property Tax Code, as
amended;
f) those approved by the President upon the
recommendation of the Fiscal Incentives Review
Board.
8.) REPUBLIC ACT NO. 7109 AUGUST 14, 1991
Section 1. Exemption from taxes. – A water district created
pursuant to Presidential Decree No. 198, as amended, shall
be exempted from the payment of (1) income taxes, except
taxes on interest income from deposits and on investments
that have no direct relation with water service operations;
(2) franchise taxes; and (3) duties and taxes on imported
machinery, equipment and materials required for its
operations: provided, that such machinery, equipment and
materials are not domestically manufactured at comparable
and competitive prices and quality.
Section 2. Additional Exemption Under the Real Property
Tax Code. – All lands, buildings, and other real property,
including equipment attached thereto, that are used for
water supply generation and distribution shall be exempted
from real property taxes: provided, that the land or building
is not used for office or any other commercial purposes.
Section 3. Period and Conditions of Exemptions. – The tax
exemption privileges provided for in Sections 1 and 2 to all
water districts shall be enjoyed only for a period of five (5)
years from the effectivity of this Act: provided, that the
water districts shall adopt internal control reforms that
would bring about their economic and financial viability:
provided, further, that, for a water district to be entitled to
the tax exemption, its appropriation for personal services,
as well as for travel, transportation or representation
expenses and purchase of motor vehicles, shall not be
increased by more than twenty-five percent (25%) a year
during the period of exemption.
9.) LOCAL GOVERNMENT CODE OF 1991
Section 133. Common Limitations on the Taxing Powers of
Local Government Units. - Unless otherwise provided
herein, the exercise of the taxing powers of provinces,
cities, municipalities, and barangays shall not extend to the
levy of the following:
(o) Taxes, fees or charges of any kind on the
National Government, its agencies and
instrumentalities, and local government units.
Section 234. Exemptions from Real Property Tax. - The
following are exempted from payment of the real property
tax:
(a) Real property owned by the Republic of the
Philippines or any of its political subdivisions
except when the beneficial use thereof has been
granted, for consideration or otherwise, to a
taxable person;
10.) NATIONAL INTERNAL REVENUE CODE (1997)
SEC. 27. Rates of Income tax on Domestic Corporations. -
(A) In General. - Except as otherwise provided in this Code,
an income tax of thirty-five percent (35%) is hereby
imposed upon the taxable income derived during each
taxable year from all sources within and without the
Philippines by every corporation, as defined in Section 22(B)
of this Code and taxable under this Title as a corporation,
organized in, or existing under the laws of the Philippines:
Provided, That effective January 1, 2009, the rate of income
tax shall be thirty percent (30%).
(C) Government-owned or -Controlled Corporations,
Agencies or Instrumentalities. [18] - The provisions of
existing special or general laws to the contrary
notwithstanding, all corporations, agencies, or
instrumentalities owned or controlled by the Government,
except the Government Service Insurance System (GSIS),
the Social Security System (SSS), the Philippine Health
Insurance Corporation (PHIC), the local water districts
(LWDs), [19] and the Philippine Charity Sweepstakes Office
(PCSO) and the Philippine Amusement and Gaming
Corporation (PAGCOR), shall pay such rate of tax upon their
taxable income as are imposed by this Section upon
corporations or associations engaged in s similar business,
industry, or activity.
11. ) REPUBLIC ACT NO. 10026 MARCH 11, 2010
(AMENDING SECTION 27(C) OF THE NIRC
"Section 289-A. Support for Local Water Districts. - The
amount that would have been paid as income tax and saved
by the local water district by virtue of its exemption to the
income taxes shall be used by the local water district
concerned for capital equipment expenditure in order to
expand water services coverage and improve water quality
in order to provide safe and clean water in the provinces,
cities, and municipalities: Provided,That, the water district
shall adopt internal control reforms that would bring about
their economic and financial viability: Provided,
further, That the water district shall not increase by more
than twenty percent (20%) a year its appropriation for
personal services, as well as for travel, transportation or
representation expenses and purchase of motor vehicles.
"All unpaid taxes or any portion thereof due from a local
water district for the period starting August 13, 1996 until
the effectivity date of this Act are hereby condoned by the
Government subject to the following conditions: (1) that
the Bureau of Internal Revenue, after careful review of the
financial statements of a water district applying for
condonation of taxes due, establishes its financial
incapacity, after providing for its maintenance and
operating expenses, debt servicing and reserve fund, to
meet such obligations for the period stated herein; and (2)
that the water district availing of such condonation shall
submit to Congress of the Philippines a program of internal
reforms, duly certified by the local water utilities
administration, that would bring about its economic and
financial viability.

"All water districts, through the Local Water Utilities

Administration, shall furnish the Committee on Ways and
Means of the Senate and House of Representatives,
respectively, on an annual basis, with statistical data and
financial statements regarding their operations and other
information as may be required, for purposes of monitoring
compliance with the provisions of this Act and reviewing