BIR Ruling

December 14, 1970 The Peoples Bank & Trust Company Manila Gentlemen : In reply to your letter dated December 4, 1970, I have the honor to inform you as follows: The inventory or listing of certificates of stock issued and outstanding before November 5, 1970 required to be filed by Section 10 of Revenue Regulations No. 2-70 includes all socks issued by both local and foreign based transfer agents of the corporation. cd The deadline for the submission of the inventory shall be the 30th day following the 15th day after the publication of the regulations in the Official Gazette. The date of the Gazette wherein publication was made is deemed the date of publication. The 30th day would, therefore, in effect be the 45th day from the date of the Gazette wherein published. Sales consummated abroad of shares of stock between or among non-residents are not subject to the 2% tax for lack of territorial jurisdiction. Such sales may, therefore, be registered by local transfer agents without requiring payment of the tax. The stock transfer agent or the secretary of the corporation may refuse to register the sale or transfer of shares of stock which are subject to the 2% tax without proof of payment of the tax. The law does not, however, require that the receipts evidencing payment be filed with him and/or retained by him. It is enough that he indicates the receipt number and date thereof in his records. The stock transfer agent or secretary of the corporation may effect transfer of shares of stock on the basis of the brokers' certification that the transaction is exempt from tax because the shares were acquired before the effectivity of Republic Act No. 6141. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue