Filing of return and payment of the tax:
- Sold outside the Philippine Stock Exchange – capital gains tax return is filed and payment of the tax is made within 30 days after each sale transaction and a final consolidated return of all transactions during the taxable year is filed on or before the 15th day of the 4th month following the close of the taxable year.
2. Sold through the Philippine Stock Exchange (now classified as percentage tax) – the stockbroker shall deduct the tax and remit to the BIR within 5 banking days from collection date.
Installment method (applicable only to not traded shares) – it shall be governed by Sec. 49 (Installment Method) of the tax code. The capital gains tax return shall be filed and the tax paid within 30 days after receipt of each installment.
Questions to Ponder:
- Ligaya sold 1,500 shares of her stock investment in a domestic corporation. The par value per share was P85 but were acquired by her at P90. On the date of sale, the shares had a selling price of P120 per share. The capital gains tax on the sale if the shares are not listed and traded in the Philippine Stock Exchange is:
A. P2,250 B. P2,625 C. P14,000 D. P11,375
2. In item No. 1, the documentary stamp tax due on the sale is:
A. P478.50 B. P638.00 C. P675.00 D. P900.00
JONATHAN RUIZ CPA, MIB