Only the Earnings of the AFP-RSBS "Shall Not be Subject to Any Tax Whatsoever"
BIR Ruling No. 118-80 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Aug 26, 1980
Full text
August 26, 1980 BIR RULING NO. 118-80 Anselmo Trinidad and Company, Inc. Cortes-Ochoa Building 184 Dasmarias, Manila Attention: Miss Gregoria R . Legaspi Operations Manager Gentlemen : In reply to your letter dated January 11, 1980, please be informed that only the earnings of the AFP Retirement and Separation Benefits System (AFP-RSBS) "shall not be subject to any tax whatsoever." (Section 2(c) of Presidential Decree No. 361). In view thereof, and considering that the stock transaction tax of 1/2 of 1% is not a tax on the earnings derived from the sale of stocks but an excise tax imposed on the privilege to sell shares of stocks, the gross selling price that AFP-RSBS realized from the sale of shares of stock acquired and sold after November 5, 1970 shall be subject to the said stock transaction tax prescribed by Section 210(a) of the Tax Code of 1977, as amended. cdta Very truly yours, TOMAS C. TOLEDO Acting Commissioner
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