Transfer of Ownership of Shares of Stock Subject to 2% Stock Transaction Tax

April 14, 1972 BIR RULING NO. 013-72 Transfer of ownership of shares of stock subject to 2% stock transaction tax . Gentlemen: This refers to your letter dated February 8, 1972 requesting information as to whether or not the distribution of property dividends to various stockholders of ABC University out of the ABC Bank shares in the name of the University, acquired after November 5, 1970, is subject to the 2% stock transaction tax. In reply, I have the honor to inform you that under Section 195-B of the Tax Code, the 2% stock transaction tax is imposed on every sale, exchange, transfer or similar transaction intended to convey ownership of, or title to, any share or shares of stock. In the instant case, the transaction will clearly result in the transfer of ownership of ABC Bank shares, from ABC University to its stockholders. Accordingly, said transaction is subject to the 2% tax imposed in said section of the Tax Code. Very truly yours (SGD.) MISAEL P. VERA Commissioner of Internal Revenue