Rules and Regulations Implementing the Increase in the Stock Transfer Tax under Republic Act No. 10963

February 13, 2018

REVENUE REGULATIONS NO. 09-18

 

SECTION 1. Scope. — Pursuant to the provisions in Section 4 and Section 244 of Republic Act No. 8424 and Section 84 of Republic Act No. 10963, these regulations are hereby promulgated to implement the rate increase in the stock transfer tax provided in Section 39 of Republic Act No. 10963 otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law."

SECTION 2. New Rate of Percentage Tax on Stock Transfers. —

"SEC. 127. Tax on Sale, Barter or Exchange of Shares of Stock Listed and Traded through the Local Stock Exchange or through Initial Public Offering. —

(A) Tax on Sale, Barter or Exchange of Shares of Stock Listed and Traded through the Local Stock Exchange. — There shall be levied, assessed and collected on every sale, barter, exchange, or other disposition of shares of stock listed and traded through the local stock exchange other than the sale by a dealer in securities, a tax at the rate of six-tenths of one percent (6/10 of 1%) of the gross selling price or gross value in money of the shares of stock sold, bartered, exchanged or otherwise disposed which shall be paid by the seller or transferor.

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The percentage tax on the sale, barter or exchange of shares of stock listed and traded through the local stock exchange has been increased from one-half of one percent (1/2 of 1%) to six-tenths of one percent (6/10 of 1%).

SECTION 3. Repealing Clause. — All existing rules and regulations or parts thereof, which are inconsistent with the provisions of these regulations, are hereby repealed, amended or modified accordingly.

SECTION 4. Separability Clause. — If any clause, sentence, provision or section of these Rules shall be held invalid or unconstitutional, the remaining parts thereof shall not be affected thereby.

SECTION 5. Transitory Provisions. — The following work around filing and payment procedures shall be followed while BIR Form No. 2552 is being updated:

	Tax Type:	ATC:
A. eFPS Filers:
1. File and pay 1/2 of 1% online using existing BIR Form No. 2552.	ST Percentage Tax — Stocks	PT 200
2. File and pay the deficiency tax of 1/10 of 1% using BIR Form No. 0605.	ST Percentage Tax — Stocks	MC 031-Deficiency Tax
B. eBIRForms Filers:
1. File 1/2 of 1% online using existing BIR form in the eBIRForms Package, and pay:	ST Percentage Tax — Stocks	PT 200
a. Online via GCASH, LBEPS, or BDPTO.
b. Manually via OTC of AABs under the jurisdiction of the RDO where taxpayer is registered.
2. File the deficiency tax of 1/10 of 1% using BIR Form No. 0605, and pay via the same options above.	ST Percentage Tax — Stocks	MC 031-Deficiency Tax
C. Manual Filers:
1. Fill-in applicable BIR Form No. 2552 (pre-printed or downloaded from BIR website) using the new tax rate of 6/10 of 1%.	ST Percentage Tax — Stocks	PT 200
2. File and pay manually via OTC of AABs under the jurisdiction of the RDO where taxpayer is registered.

SECTION 6. Effectivity. — These regulations shall take effect immediately.

(SGD.) CARLOS G. DOMINGUEZSecretary of Finance

Recommending Approval:

(SGD.) CAESAR R. DULAYCommissioner of Internal Revenue

 

Published in the Manila Bulletin on February 28, 2018.