BIR Ruling

October 10, 1972 San Jose, Cristi, Enriquez and San Jose Mariana's Building 707 T. M. Kalaw cor Churruca Sts., Ermita Manila Attention: Atty . Rolando S . Santos Gentlemen : This refers to your letters dated May 13, 1972 and August 10, 1972 requesting opinion as to whether or not income derived from the sale abroad of shares of stocks in a domestic corporation is subject to Philippine income tax. It is represented that both seller and buyer are non-resident aliens. cdtech In reply, I have the honor to inform you that income derived from the sale of intangible personal property, like shares of stock, without the Philippines shall be treated as derived entirely from sources within the country in which sold. (Sec. 37(e), Tax Code). Accordingly, the sale of shares of stock owned by a non-resident alien, if perfected and consummated abroad, is not subject to the Philippine income tax. (Collector of Internal Revenue vs. Anglo California National Bank G. R. No. L-12476, January 29, 1960). acd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue