Internal Revenue Tax Case of Mr. Vicente Goquiolay & Co., Inc.

November 21, 1960 BIR RULING NO. 495-60 4th Indorsement Respectfully returned to the Revenue Operations Executive (Assessment) the internal revenue tax case of Mr. Vicente Goquiolay & Co., Inc. with the following information: Section 213 of the National Internal Revenue Code imposes a documentary stamp tax on sales, agreements to sell, memoranda of sales, deliveries or transfer of bonds, due bills, certificates of stock. The tax can be imposed at any stage of the transfer of the certificate of stock. It may be imposed on the agreement to sell, on the actual sale or transfer or on the memorandum of sale. However, the law requires that only one tax shall be collected on each sale or transfer of certificate of stock. In other words, if the agreement to sell certificates of stock has been taxed, no documentary stamp tax is due on the actual sale and vice versa . If, however, the agreement to sell as well as the actual sale or transfer have not been taxed, the parties can be required to execute a memorandum of sale and the documentary stamp tax prescribed in Section 213 imposed thereon. If, as alleged by the taxpayer, the documentary stamp tax has been paid by their transfer agent, no additional documentary stamp tax is due from the taxpayer for the same transaction. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue