Dealer in Securities
BIR Ruling No. 030-73 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Nov 14, 1973
Full text
November 14, 1973 BIR RULING NO. 030-73 Dealer in securities . For engaging in the purchase and sale of securities, the firm is a dealer in securities. (Sec. 195(r), Tax Code. As such dealer in securities, it is subject to the annual fixed tax of P150.00 and to the 3% tax on its gross income. (Sec. 182(A) (3) (z) and Sec. 195-A, Tax Code). Moreover, the gains realized by it as dealer in securities from sales of stock are considered ordinary gains the stocks it sells being in trade. Accordingly, said gains should be declared for income tax purposes. Since it is subject to the percentage tax under Section 195-A of the Tax Code, the gross selling price of the shares of stock sold by it as dealer in securities is not subject to the stock transaction tax imposed by Section 195-B of the same Code.
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