BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Apr 10, 1973
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April 10, 1973 Filipinas Mutual Finance, Inc. Beneficial Life Building Intramuros, Manila S i r : This refers to your letter dated March 26, 1973 wherein you posed the following query: "If a corporation is a dealer in securities, will the gains realized from the sale of shares of stocks subjected to stock transfer tax be still subject to income tax?" In reply, I have the honor to inform you that the gains realized by a dealer in securities from sales of stock are considered ordinary gains, the stock he sells being stocks in trade. And since Republic Act No. 6141 exempts from income tax only capital gains arising from stock transaction, the dealer in securities should return for income taxation the gains realized by him from the sale of stocks and securities. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue
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