BIR Ruling

December 15, 1970 The President Manila Stock Exchange Manila S i r : In reply to your letter dated November 25, 1970, I have the honor to inform you that, as finally approved, the Regulation provide as follows: The official receipt (Sec. 7(d), Regulations) shall indicate the name, address and Taxpayer Account Number (TAN) of the seller or transferor, kind and number of shares (common or preferred), selling price or market value and amount of tax. cd The information returns (Sec. 9 Regulations) to be filed by the stockbroker, stock exchange, stock transfer agent or secretary of the corporation need not indicate the name and address of the customer. The inventory or listing of certificates of stock issued and outstanding before November 5, 1970 (Sec. 10, Regulations) shall indicate the complete name or identity of the stockholders or beneficial owners in the case of street certificates. Stock dividends issued on or after November 5, 1970 are, when sold, subject to the 2% stock transaction tax, and, therefore, the gain to be derived therefrom shall be exempt from income tax. Stock subscriptions acquired before November 5, 1970 even if fully paid only after said date, when sold thereafter, shall not be subject to the 2% stock transaction tax, and, therefore, the gain to be derived therefrom shall be subject to income tax. The 2% stock transaction tax is due and payable on stock transactions effected on or after November 5, 1970 (Sec. 2 Regulations). Very truly yours, CESAR VIRATA Secretary