BIR Ruling

August 5, 1976 Mr. Claudio P. Lopez 498 J. Rizal St. Makati, Rizal S i r : This refers to your letter dated January 21, 1976 requesting a ruling on whether donation of shares of stock is subject to the stock transaction tax or to the donor's tax. aisa dc It is represented that the shares of stock donated were original issues to the donor in 1973 and were donated to his children in 1975. In reply, please be informed that the transfer of the aforesaid shares of stock by donation to the donor's children is subject to the 1/4 of 1% stock transaction tax prescribed in Section 195-B of the Tax Code, as amended. Moreover, the donation is subject to the donor's tax prescribed in Section 108 in relation to Section 109 both of the Tax Code. acd Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."