Question & AnswerQ&A (Republic Act No. 9648)
The main purpose of Republic Act No. 9648 is to exempt from documentary stamp tax any sale, barter, or exchange of shares of stock listed and traded through the local stock exchange.
Section 199 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9243, is further amended by Republic Act No. 9648.
Sale, barter, or exchange of shares of stock listed and traded through the local stock exchange are exempt from documentary stamp tax under this Act.
The Secretary of Finance is tasked with promulgating and publishing the necessary rules and regulations for the effective enforcement of the provisions of this Act.
This Act took effect on March 20, 2009, or immediately upon the expiration of the five-year exemption from documentary stamp tax under Republic Act No. 9243, whichever is later.
The Separability Clause ensures that if any provision of the Act is declared unconstitutional or invalid, the remaining provisions will continue to be valid and enforceable.
They are repealed, amended, or modified accordingly to be consistent with this Act.
No, it only applies to shares of stock that are listed and traded through the local stock exchange.
Despite the provisions of Section 173 to the contrary, the sale, barter, or exchange of shares of stock listed and traded through the local stock exchange are exempted from documentary stamp tax as provided in this Act.
The Act was finally passed by the House of Representatives and Senate on May 26, 2009, and May 25, 2009, respectively, and approved by President Gloria Macapagal-Arroyo on June 30, 2009.