BIR Ruling

February 28, 1972 Miss Virginia de Jesus 1614 Apt. "B" M. Adriatico Malate, Manila M a d a m : This refers to your letter dated February 18, 1972 requesting information as to whether or not your aunt, Madam Consuelo Orozco who purchases for investment shares of stock from the Stock Market through a licensed stock broker and later on sells the same in the Stock Market again through a licensed stock broker is liable to the dealer in securities fixed and percentage taxes. In reply, I have the honor to inform you that under Section 194(r) of the Tax Code, "dealer in securities" includes all persons who for their own account are engaged in the sale of stock, bonds, exchange, bullion, coined money, bank notes, promissory notes, or other securities. It appearing that your aunt sells her shares of stock thru licensed brokers and is not engaged in the business of buying and selling shares of stock but merely buy such shares for investment and later sells them thru brokers, she is not subject to the dealer in securities fixed and percentage taxes prescribed in Section 182(A)(3)(z) and Section 195-A, respectively of the Tax Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue