RR No. 9-2018 — Prescribes the rules and regulations implementing the increase in the Stock Transfer Tax pursuant to RA No. 10963 (TRAIN Law) (Published in Manila Bulletin on February 28, 2018)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE IECORUS MTDIN i ICEFERRAL FTENE FEB 2 5 2018 4:30 P.m

Quezon City RECEIVED

REVENUE REGULATIONS NO. G- 2018

SUBJECT: Rules and Regulations Implementing the Increase in the Stock Transfer Tax Under Republic Act No. 10963, Otherwise Known as the "Tax Reform

for Acceleration and Inclusion (Train) Law

TO :All Revenue Officials, Employees, and Others Concerned

SEC. 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".

SEC. 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 iocal 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%).

SEC. 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rules and regulations or parts thereof which are inconsistent with the provisions of these regulations, are hereby repealed.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.

SEC. 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

payment procedures shall be followed while BIR Form No. 2552 is being updated: SEC. 5. TRANSITORY PROVISIONS. - The following work around filing and

B. A.eFPS Filers: 2 1 File l/2 of 1% online using existing BIR form in the File and pay 1/2 of 1% online using existing BIR Form File and pay the deficiency tax of 1/10 of 1% using eBIRForms Filers : BIR Form No. 0605 No. 2552 ST Percentage ST Percentage ST Percentage Tax - Stocks Tax -- Stocks Tax Type: Deficiency Tax MC 031 PT 200 PT 200 ATC:

C. File the deficiency tax of 1/10 of 1% using BIR Form No. 0605, and pay via the same options above. Manual Filers: eBiRForms Package, and pay b.Manually via OTC of AABs under the jurisdiction a. Online via GCASH,LBEPS. or BDPTO of the RDO where taxpayer is registered ST Percentage Tax -- Stocks- Tax - Stocks Deficiency Tax MC 03

2 Fill-in applicable BIR Form No. 2552 (pre-printed or File and pay manually via OTC of AABs under the downloaded from BIR website) using the new tax rate of 6/10 of 1% . jurisdiction of the RDO where taxpayer is registered. ST Percentage Tax -- Stocks PT 200

SEC. 6. EFFECTIVITY. -- These regulations shall take effect immediately

CARLOS G. DOMINGU TE

D Recommending Approval: auax Secretary of Finance FEB 13 2018

Commissioner of Internal Revenue CAESAR R. DULAY 0129 35 IICRS MGTDF.E.N RECEIVED -CFTETRNALI FEB 2 6 2018 4:30 AM. UJss D