Revising the Rates of Capital Gains Tax on Certain Sales of Shares of Stock
Batas Pambansa Blg. 221, enacted on March 25, 1982, revises the capital gains tax rates on the sale of shares of stock in the Philippines. It establishes a tiered taxation system where net capital gains up to P100,000 are taxed at 10%, and those exceeding this amount are taxed at 20%. Additionally, sales of shares listed and traded on a local stock exchange are taxed at a reduced rate of 0.25% of the gross selling price. The act mandates that the taxes be collected and remitted according to regulations set by the Minister of Finance and becomes effective upon its approval and subsequent publication.
Law Information
- Reference Number
- Batas Pambansa Blg. 221
- Date Enacted
- Category
- Statutes
- Subcategory
- Mga Batas Pambansa
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
March 25, 1982
BATAS PAMBANSA BLG. 221
AN ACT REVISING THE RATES OF CAPITAL GAINS TAX ON CERTAIN SALES OF SHARES OF STOCK AND THE MANNER OF ASSESSING AND COLLECTING THE SAME, FURTHER AMENDING FOR THE PURPOSE THE NATIONAL INTERNAL REVENUE CODE OF 1977, AS AMENDED
SECTION 1.Paragraph (g), Section 34 of the National Internal Revenue Code of 1977, as amended, is further amended to read as follows: acd
"(g)The provisions of paragraph (b) of this Section to the contrary notwithstanding, net capital gains realized during each taxable year by individuals or corporations from sale or exchange of shares of stock shall be taxed as follows:
| Not over P100,000 | 10% |
| Over P100,000 | 20% |
Provided, however, That sale of shares of stock listed and traded through a local stock exchange shall be taxed at one-fourth of one percent of the gross selling price of the share or shares of stock sold.
"The taxes herein imposed shall be collected, paid and remitted in a manner provided for by regulations to be promulgated by the Minister of Finance, within thirty days from the approval of this Act, upon the recommendation of the Commissioner of Internal Revenue and/or the Chairman of the Securities and Exchange Commission. Such rules and regulations shall take effect fifteen days following its publication in a newspaper of general circulation in the Philippines."
SECTION 2.This Act shall take effect upon its approval. cd
Approved: March 25, 1982
Published in the Official Gazette, Vol. 79 No. 4 Page 521 on January 24, 1983.
Cite This Law
Revising the Rates of Capital Gains Tax on Certain Sales of Shares of Stock, Batas Pambansa Blg. 221, Mar 25, 1982 (Philippines)
Revising the Rates of Capital Gains Tax on Certain Sales of Shares of Stock, Batas Pambansa Blg. 221 (Phil. 1982)
Browse More Statutes
Explore other laws in the Statutes category.
View All StatutesNeed Help Understanding This Law?
Ask our AI assistant to explain provisions, implications, or related laws.
Ask AI About This Law