Exemption from the 1/4 of 1% Transaction Tax

December 27, 1979 BIR RULING NO. 139-79 Exemption from the 1/4 of 1% transaction tax This refers to your letter dated June 26, 1973 requesting opinion as to whether the transfer of 2,500 shares at the par and market value of P100.00/share of the Crown Radio Corporation (Philippines) to Attys. Antonio Jose F. Cortes, Luis S. Marquez and Silvestre Pascual is subject to the stock transfer tax imposed by Section 210 of the Tax Code of 1977. It is represented that the deed of transfer was executed on September 30, 1977; and that the shares of stocks so transferred were acquired by the sellers-transferors in 1966 and 1967. In reply thereto, please be informed that the aforesaid transfer of share is not subject to the of 1% transaction tax as the shares were acquired by the sellers thereof before November 5, 1970. However, any gain derived from the sale of the stocks shall be subject to the capital gains tax, pursuant to Section 34 of the Tax Code of 1977.