Tax Consequences of the Receipt by an NGO Enjoying Tax-Free Status Intending to Sell Its Shares at the Stock Markets

October 22, 1992 BIR RULING NO. 298-92 25 (b) (5) (C) (ii) 000-00 298-92 Ambassador Bienvenido A. Tan, Jr. 3B Cordova Condominium Valero corner Sedeo, Salcedo Village Makati, Metro Manila S i r : This refers to your letter dated August 17, 1992 stating that your client is an NGO enjoying tax-free status as a resident of the United States of America; that recently, your client is a beneficiary of certain Class-B shares of companies doing business in the Philippines (Benguet Consolidated and PLDT) and registered with the Manila Stock markets; and that your client intends to sell its shares at the said stock markets and remit the proceeds of the sale thereof to its home office in the United States to be used in the work of the foundation. Based on the foregoing representations, you now request in effect a ruling if there are any other tax consequences for the above transaction outside the of 1% tax based on the gross selling price of the share or shares of stock. In reply, please be informed that aside from the capital gains tax of of 1% imposed under Section 25(b)(5)(c)(ii) of the Tax Code, as amended, your client is not subject to any other tax from the aforementioned sale transaction. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue