Law Summary
Tax Rate on Sales of Listed Shares
- A tax imposed on the sale, barter, exchange, or disposal of shares of stock listed and traded through the Philippine Stock Exchange (PSE).
- Tax rates:
- Three-eighths of one percent (3/8 of 1%) on the gross selling price or gross value in money of shares for one year starting May 28, 1994.
- Thereafter, a rate of one-half of one percent (1/2 of 1%) applies.
Collection and Remittance of Tax on Sales through Local Stock Exchange
- Stockbrokers effecting sales have a duty to:
- Collect the tax from the seller upon issuance of confirmation of sale.
- Issue an official receipt for the tax collected.
- Remit the collected tax to the Revenue District Officers (RDO) where the PSE is located within five banking days from collection.
- Stockbrokers must submit a true and complete weekly return every Monday to the local stock exchange secretary summarizing transactions and taxes collected.
- The local stock exchange secretary reconciling weekly reports must transmit consolidated returns twice monthly (1st and 16th) to the concerned RDO, summarizing all transactions effected through the exchange.
Tax on Shares Sold or Exchanged through Initial/Primary Public Offering
- The corporate issuer conducting the primary public offering must:
- File a tax return and pay the corresponding tax to the RDO where the PSE is located within 30 days from the date of listing.
- Attach a copy of the sale instrument to the return.
Repealing Clause
- These regulations amend and/or repeal relevant provisions of Revenue Regulations No. 3-95.
Effectivity
- The regulations become effective fifteen days after publication in a newspaper of general circulation in the Philippines.