M a n i l a

PRESIDENTIAL DECREE No. 732 June 19, 1975


WHEREAS, INTERNATIONAL SCHOOL, INC., is a domestic educational institution established primarily for dependents of foreign diplomatic personnel and other temporary residents, and as such is exempt from the provisions of Sub-section (7) of Article XV, Section 8 of the Constitution of the Philippines;

WHEREAS, in view of the widening diplomatic and commercial relations of the Republic of the Philippines with various countries of the world, it is essential that the continued growth of INTERNATIONAL SCHOOL, INC. be encouraged;

WHEREAS, INTERNATIONAL SCHOOL, INC. owns valuable real properties in Makati, Rizal, exclusively used by it for educational purposes, which it wishes to donate without compensation to the Government of the Republic of the Philippines;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and order the following:

Section 1. The donation by INTERNATIONAL SCHOOL, INC. of all of its existing real properties in Makati, Rizal, except the buildings thereon, to the Government of the Republic of the Philippines on or before May 27, 1975, shall be entitled to all the tax incentives granted under Presidential Decree No. 697, dated May 9, 1975.

Section 2. To enable INTERNATIONAL SCHOOL, INC. to continue carrying out its educational program and improve its standard of instruction, said school shall:

(a) be entitled to use the real properties so donated and to construct and own buildings thereon exclusively for educational purposes without paying any rental for a period of twenty-five (25) years, renewable for another 25 years upon the same terms: Provided, That after the 25-year period or, renewal period or if, for any reason, INTERNATIONAL SCHOOL, INC., ceases to occupy said real properties, all improvements thereon of the permanent nature shall belong to the Government of the Republic of the Philippines;

(b) upon consultation with the Secretary of Education and Culture, shall determine its own curriculum and teach whatever language or languages it may deem proper and determine the amount of fees and assessments which may be reasonably imposed upon its students, to maintain or conform to the school standard of education;

(c) employ its own teaching and management personnel selected by it either locally or abroad, from Philippine or other nationalities, such personnel being exempt from otherwise applicable laws and regulations attending their employment, except laws that have been or will be enacted for the protection of employees; Provided, That such exemption shall not extend to their liability for income taxes;

(d) whenever necessary to carry out its objectives, have the right to obtain leases on real properties, acquire personal properties, tangible or intangible, or any interests in such properties other real, by purchase, lease, barter, donation, gift or otherwise, and dispose of, mortgage or encumber them for the benefit of the school concerned;

(e) establish its own calendar of studies and work schedule to maximize its efficiency and promote education of its students;

(f) maintain standards of education compatible with those obtaining in similar schools of generally recognized standing;

(g) promote international friendship, goodwill and understanding among the members of the foreign community and the citizens of the Philippines; and

(h)not teach anything derogatory to the prestige and well-being of the Philippines and its people, nor those which will subvert its institutions and government.

Section 3. Any provision of law, rule or regulation contrary to, or in conflict with, this Decree is hereby repealed or modified accordingly.

Section 4. The Secretary of Education and Culture is hereby authorized to accept the donation herein mentioned in behalf of the Government of the Republic of the Philippines;

This Decree is hereby made a part of the law of the land and shall take effect on the date hereof.

Done in the City of Manila, this 19th day of June, in the year of Our Lord, nineteen hundred and seventy-five.

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