Publishing Presidential Decree No. 1116, Indefinitely Suspending the Effectivity of P.D. No. 779, Which Imposes "A Schedular Capital Gains Tax on Stock Transactions"

August 8, 1977 REVENUE MEMORANDUM CIRCULAR NO. 21-77 SUBJECT : Publishing Presidential Decree No. 1116, Indefinitely Suspending the Effectivity of P.D. No. 779, Which Imposes "A Schedular Capital Gains Tax on Stock Transactions" TO : All Internal Revenue Officers concerned For the information and guidance of all concerned, quoted hereunder are pertinent portion of Presidential Decree No. 1116 indefinitely suspending the effectivity of Presidential Decree No. 779 which imposes a schedular gains tax on stock. "SECTION 1. The effectivity of P.D. No. 779 imposing a schedular income tax on capital gains arising from stock transactions is hereby suspended indefinitely. "SECTION 2. Effectivity . This Decree shall take effect retroactively from January 1, 1976." FEATURES OF THE AMENDMENT The imposition of the schedular income tax on capital gains arising from stock transaction is suspended indefinitely. Accordingly, stock transaction involving stocks acquired on or after November 5, 1970 and sold thereafter shall still be subject only to the percentage tax of 1/4 of 1% imposed by R.A. 6141, as amended by P.D. 10. All internal revenue officers and others concerned are hereby enjoined to give this Revenue Memorandum Circular as wide publicity as possible. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8