BIR Ruling

July 6, 1970 MEMORANDUM FOR: The Commissioner This refers to the question as to the proper conversion rate of the $ to the P in connection with the stock transaction of Mr. John H. Power. For purposes of Philippine income tax, the acquisition cost to Mr. Power of stocks purchased from the New York Stock Exchange paid in dollars and sold at the Makati Stock Exchange must necessarily be the equivalent peso value thereof at the time of purchase. It is the opinion of this Office, that before the adoption of floating rate, the peso value of the $ should be at P3.90 it being then the official rate; thereafter, it should be at the floating rate. aisadc Respectfully submitted: PRISCILLA R. GONZALES Acting Revenue Operations Head (Legal)