Collection of Tax on Sales of Shares of Stock Listed and Traded Through a Local Stock Exchange

April 18, 1988 BIR RULING NO. 141-88 24 (a) (2) (B) 000-00 141-88 Gentlemen : This refers to your letter dated November 25, 1987 requesting clarification as to the applicability of Section 7(b)(1) of Revenue Regulations No. 2-82 partly reading as follows: "Section 7(b)(1) Tax on sales of shares of stock listed and traded through a local stock exchange . It shall be the duty of every stockbroker to turn over the sums collected by him as tax to the Bureau of Internal Revenue within five banking days from the date of collection thereof; . . ." In reply, please be informed that under the above-quoted provision, the sums collected by every stockbroker as tax on sales of shares of stock listed and traded through a local stock exchange must be turned over by said stockbroker to this Office within five (5) banking days reckoned from the date of its collection , and not on the date of the transaction (sale), a procedure which you are presently following. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner