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RULE 3.
GUIDELINES IN THE AVAILMENT OF INCOME TAX EXEMPTION
Sec. 1. Exemption from Income Tax A duly registered BMBE shall be
exempt from income tax on income arising purely from its operations as such
BMBE: Provided, That this income tax exemption shall not apply to the
following:
(a) Interest, including those from any currency bank deposit and yield or
any other monetary benefit from deposit substitutes and from trust
funds and similar arrangements;
(b) Royalties;
(c) Prizes and other winnings;
(d) Cash and/or property dividends;
(e) Capital gains from the sale of shares of stock not traded through the
stock exchange;
(f)
Capital gains from the sale or other disposition of real property;
(g) The share of an individual in the net income after tax of an association,
a joint account, or a joint venture or consortium;
(h) The share of an individual in the distributable net income after tax of a
taxable partnership of which he is a partner;
(i)
Income from the practice of profession received directly from the clients
or from the professional partnership of which the individual is a partner;
(j)
Compensation; and
(k) All other forms of passive income and income from revenues not
effectively connected with or arising from operations of the BMBEs
as such.
Sec. 2. Determination of the Value of Assets of the BMBE for Income
Tax Exemption Purposes For the purpose of exemption from income tax, the
total assets of the BMBE, which shall not exceed Three Million Pesos
(P3,000,000.00), shall include all kinds of properties, both personal properties
and real properties (but excluding land on which the particular business entity's
office, plant and equipment are situated) that are owned and used/to be used
or even if not owned but used /to be used, by the BMBE and/or its affiliates for