pinoytaxation.com » Doc. stamps tax http://pinoytaxation.com E-text book on tax, investments, incentives, and doing businesses in Philippines. Wed, 16 Sep 2009 05:43:03 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 DST exemption on listed shares, made permanent? http://pinoytaxation.com/2009/08/dst-exemption-on-listed-shares-made-permanent/ http://pinoytaxation.com/2009/08/dst-exemption-on-listed-shares-made-permanent/#comments Fri, 14 Aug 2009 02:13:36 +0000 pinoytaxation http://pinoytaxation.com/?p=316 Republic Act No. 9648 was signed into law by President GMA on June 30, 2009 and applies retroactively to March 20, 2009. This made permanent the 5-year exemption introduced by Republic Act No. 9243 that commenced on May 20, 2004 and ended up on May 20, 2009.]]> tax exemption.pinoytaxationYes, you read it right as the Congress has already made the documentary stamp tax (DST) exemption of listed shares permanent under Republic Act No. of . With the advent of the present financial crisis in the country and in the worldwide neighborhood, and for other genuine economic objectives, the Congress had take a great initiative of providing incentives for the local stock exchange, e.g. Philippine Stock Exchange, etc.

Republic Act No. 9648 otherwise known as “An Act Exempting from Documentary Stamp Tax any Sale, Barter, or Exchange of shares of Stock Listed and Traded through the Stock Exchange, further Amending for the Purpose Section 199 of the National Internal Revenue Code of 1997, as amended by republic Act no. 9243” was signed into law by President GMA on June 30, 2009 and applies retroactively to March 20, 2009. This made permanent the 5-year exemption introduced by Republic Act No. 9243 that commenced on May 20, 2004 and ended up on May 20, 2009. Effectively, those who paid DST on secondary trading shall be entitled to refund the same pursuant to PSE Memorandum for the purpose.

How do they benefit from this law? They save P0.75 per P200 par value of shares of stock, or fractional thereof for every secondary sale, barter, or exchange of such listed shares. If someone holding P1,000,000 par value shares sell the same in the stock exchange, then, the tax he saved is P3,750 (P1M/200 multiply by P0.75). Maybe small at its face, but taken as a whole along with other transactions, then, it will surely make a difference and the industry was very much happy with that. Please note that in a trading day, a shares of stock may transfer ownership many times depending on how busy and marketable it is. Every time it transfers hand, DST savings make the parties a big smile in their faces because of this law.

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