BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Oct 13, 1972
Full text
October 13, 1972 J. V. Pagaspas Memorial Ward, Inc. Tanauan, Batangas Attention: Mr . Salvador C . Laurena, M . D . President & Chairman of the Board Gentlemen : This refers to your letters dated May 24 and July 6, 1972, requesting that the proposed sale of some of your shares of stocks which were donated by various mining companies be exempted from the 2% stock transaction tax on the ground that corporation is a charitable and non-profit corporation. In reply, I have the honor to inform you that your request cannot be granted. Under Section 195-B of the Tax Code, as inserted by Republic Act No. 6141, only donations of shares of stocks among others, to charitable organizations, are exempt from the 2% stock transaction tax. It is, clear therefore that the law does not exempt from the said tax sales of such donated certificates of stock by the charitable institution. acd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue
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