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Mo 38-1980
Mo 38-1980
Mo 38-1980
Ministry of Finance
Manila
April 10, 1980
MINISTRY ORDER NO.
X880
TO
SUBJECT
Section 1. Pursuant to the provisions of Section 6 of Presidential Decree No. 1423, the following rules and regulations governing the
grant of tax exemptions to inventors are hereby promulgated.
Section 2. Definition of Terms.-For Purposes of these regulations,
the following definition of terms are hereby adapted:
"Invention" shall mean any new and useful machine manufac(a)
tured product or substance, process or any improvement thereof that
satisfies the requirement of novelty, utility and operativeness.
As hereinafter used, the word invention shall be construed to include utility models and industrial designs:
(b) "Innovation (Utility Model) shall mean any new model of
implement or tools of any industrial product or part of the same,
which does not possess the quality of invention, but which is of practical utility by reason of its form, configuration, construction or composition.
"Industrial Design" shall mean any new original and ornamen(c)
tal design for an article of manufacture.
(d) "First Sale" shall mean the original sale, barter or exchange
by or for the inventor for nominal or valuable consideration intended to
transfer ownership of or title to the invention, utility model or industrial design, Provided, That such first sale is effected after the effectivity of this Ministry Order, and Provided, Further, That in the case
of inventions granted Letters Patent and registered with the Philippine
Inventors Commission after the promulgation of this Order, such first
sale shall be construed to mean the actual sale, barter or exchange of
the invention made after the grant of the Letters Patent as duly recorded in the books of account of the inventor.
Section 3, Persons entitled to tax exemption.- The following
persons may avail. of the tax exemption under P.D. No. 1423, viz:
(a) Individual. Any Filipino citizen who has an invention duly
patented by the Philippine Patent Office.
(b) Partnership. In the case of a partnership, the inventor or
inventors must be a partner or partners to the partnership and that he
or they must own the majority interest in the partnership capital, provided, however, that at least 60% of the capital of the partnership shall
belong to Filipino citizens.
0
0.
(c)
(b)
ly.
CESAR VIRATA
Minister of Finance