BIR Ruling

December 13, 1973 Messrs. Meer, Meer & Meer 9th Floor, PLDT Building Legaspi St., Makati, Rizal Gentlemen : In reply to your letter dated December 10, 1973, I have the honor to inform you that the stock transaction tax is due and payable even if the shares are sold on installment. The tax being more of an excise tax rather than a tax on income, the tax shall be paid in full computed on the basis of entire selling price and not partially on the basis of each installment payment, and this holds true even if some installments are due beyond the period covered by the law. Accordingly, the stock transfer agent or secretary of the corporation, as the case may be, should collect the tax before recording the sale or transfer in the stock and transfer book even if the certificates of stock are not yet issued to the buyer. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5