BIR Ruling [UN-187-95]

May 16, 1995 BIR RULING [UN-187-95] Philippine Stock Exchange, Inc. Phil. Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Attention: Atty . Maricel Pascual-Lopez Head, Compliance & Surveillance Dept . Gentlemen : In reply to your letter of the 2nd instant, please be informed that on sales of shares of stock listed and traded through the local stock exchange, a tax at the rate of: (1) three-eights of one percent (3/8 of 1%) for a period of one (1) year from May 28, 1994; and (2) one half of one percent (1/2 of 1%) thereafter shall be imposed on the gross selling price or gross value in money of the shares of stock sold, bartered, exchanged or otherwise disposed through the facilities of a local stock exchange. (Sec. 5 Revenue Regulations No. 3-95 implementing R.A. No. 7717). Thus, beginning May 27, 1995 sales of shares of stock listed and traded through the local stock exchange shall be subject to a tax of 1/2 of 1% based on the gross selling price or gross value in money of the shares of stock sold, bartered, exchanged or otherwise disposed through the facilities of a local stock exchange (BIR Ruling No. 050-95 dated March 7, 1995). The tax shall be paid by the seller or transferor. aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)