BIR Ruling No. 474-2017

REPUBLIC OF THE PHILIPPINES

A BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City UILIPPIN IDeM Bureau of Internal Revenue Ruling

Executivc Order (EO) as amended No. 323: Proclamation No. 50. series of 1986. Date: Cctc'eer ^ 7-17 Person to Contact: Chief. L.aw Division Tel. Nos. 926-55-36 / 927-09-63

Denartment of Finance. 104 Gamboa Street. Legaspi Village. Makati City PRIVATIZATION AND) MANAGEMENT OFFICE

Attention: MA LOURDES B. RECENTE Chief Privatization Officer

Gentlemen:

that the National Government (NG). through the Privatization and Management Oftice (PMO) (formcrly thc Assct Privatization Trust). is exempted from paying the stock transaction tax incident to the proposed block sale ot' listed shares of' stocks through the Philippine Stock Exchange (PSE) This refers to your letter dated February 08. 2017. requesting for an opinion or ruling

Background:

virtue of Executive Order (EO) No. 323 dated Decernber 06.'2000 /'onstinuing un Inter- Office (PMO) umder the Depurtment of Finance tor the Continaing Privatization of Agency Privatication Couneil (PC) and Creating a Privatization omd Mumagement Goverment Assets and C'orporutions/- took over the powers. duties. and functions of the Asset Certoin Government Corporutions and'or the Assets thereof. amd Creuting the Con?mittee on Privatization and the Asset Privut icutiom Truest. Privatization T'rust under Proclamation No. 50. 'series of 1986. otherwise known as "Proclaining and Launehing u Progran for the Expeditious Disposition und Privatizution of The PMO. a government agency organized under the Department of Finance (DOF) bv

transferred assets for privatization and disposition. The PMO intends to undertake the disposition of said listing shares of stock by way of a block sale' through the PSE under the disposition program of the government corporations, assets. and idle properties of the NG. provided that any and all sales and other modes of privatization or disposition is approved hy the Privatization Council. The PMO is currently holding listed shares of stocks as one of its PSE's Revised Trading Rules dated June 08. 2010. Hence. this requcst. Pursuant to FO No. 323. the PMO is cmpowered to implement the actual marketing/

states that: In reply. please be informed that Seetion 34 of Proclamation No. 50. series of 1986.

: Defined in the Revised Trading Rules of the PSt: as "pre-arranged transaction which is executed through the facilities of the Eixchange.

PRUATIZATION AND MANAGEMENT OFFICE o?

T

corporations and assets held hy rit. shall be exempt from all taxes. fees. acquired the said assets hy foreclosure, the non-poyment ot sinmilar taxes. fees. charges. imposts. und ussessments shall not he a bar to the consolidation of title in the foreclosing institutions and the subsequent passing of title to the Trust or the corporutions held by the Trust. provisions of am law to the contrary notwithstandting. the Trust as well us the charpes,_ imposts_und assessments arising from or occasioned by the passing of title over such corporations or assets from the government institutions to the Trust and/or from the Trust to a private acquisitor or huver inposed by the National Government or any subdivision thereof including hut not limited to stock transfer taxes, capital gains taxes. documentury stumps. registration fees and the like: Provided. that in case the said government instilutions "SEC. 34. Exemption from Taxes. Fees. md Other (harges. - ... The

or hindered hy the existence of any liens by wan of taxes. charges or other that the proceeds from such sale or transfer shall be subject to a ux lien and first he applied to satisf' such obligations secured by' said liens. " (Emphasis and underscoring supplied) assessments in favor of the governnent at the time of sale or transfer: Provided. The sale or tramsfer of such corporations or assets shull not be enjoined

over such corporations or assets from the government institutions to the Trust and/or fron the Management Officc) as well as the corporations and assets held hy it. shall be exempt from all taxes. fees, charges. imposts. and assessments arising from or occasioned by the passing of title Trust to a private acquisitor or buyer imposed by the NG or any subdivision thereof. Under the above quoted provision, the Asset Privatization I'rust (now Privatization and

Sale" through the PSE is exempt from payment of stock transaction tax. Accordingly. the disposition by the PMO of its listed shares of stocks by way of "block

if upon investigation, it will be disclosed that the facts are different. then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented. However.

Very truly your's.

EX-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 009.668

PAGE 2OF2