Question & AnswerQ&A (BIR REGULATIONS NO. 5-95)
The amendments are promulgated pursuant to Section 245 in relation to Section 4 of the National Internal Revenue Code (NIRC), as amended by Republic Act No. 7717.
The tax rate imposed is three-eights of one percent (3/8 of 1%) on the gross selling price or gross value in money of the shares of stock sold.
After one year, the tax rate is one-half of one percent (1/2 of 1%) on the gross selling price or gross value in money of the shares of stock sold.
The stockbroker who effected the sale is responsible for collecting the tax from the seller upon issuance of the confirmation of sale.
The stockbroker must remit the tax within five (5) banking days from the date of collection to the RDO where the Philippine Stock Exchange is located.
The stockbroker must submit a true and complete return every Monday for all transactions effected the preceding week, declaring under penalty of perjury all taxes collected and turned over to the RDO.
The secretary reconciles the stockbrokers' weekly reports and transmits a consolidated return of all transactions to the RDO on the first and sixteenth day of each month.
The corporate issuer in the primary offering is responsible for filing the return and paying the tax to the RDO where the Philippine Stock Exchange is located.
The tax return must be accompanied by a copy of the instrument of sale.
They take effect fifteen (15) days after publication in any newspaper of general circulation in the Philippines.
These regulations amend and/or repeal pertinent provisions of Revenue Regulations No. 3-95.