RR No. 23-2020 — Implements Section 6 of RA No. 11494 (Bayanihan to Recover as One Act) on the repeal of tax on the Initial Public Offering (IPO) of shares of stocks provided under Section 127 (B) of the NIRC of 1997, as amended (Published in Malaya Business Insight on October 2, 2020)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

September 14, 2020

REVENUE REGULATIONS NO. 23- 2020

SUBJECT: Implementing Section 6 of Republic Act No. 11494, otherwise known as the "Bayanihan to Recover as One Act" on the Repeal of Tax on the Initial Public Offering (IPO) of Shares of Stocks Provided Under Section 127 (B) of the National Internal Revenue Code (NIRC) of 1997, As Amended

To: All Internal Revenue Officers and Others Concerned

to Recover as One Act". implement Section 6 of Republic Act (R.A.) No. 11494, otherwise known as the "Bayanihan Internal Revenue Code (NIRC), as amended, these Regulations are hereby promulgated to SECTION 1. Scope. - Pursuant to the provisions of Section 244 of the National

of stocks sold, bartered, exchanged or other disposition through Initial Public Offering (IPO) provided under Section 127 (B) of the NIRC of 1997, as amended, is repealed. Thus, every sale, barter, exchange or other disposition through IPO of shares of stock in closely held corporations shall no longer be subject to the tax imposed under Section 127(B) upon the effectivity of RA No. 11494. SECTION 2. Repeal of Section 127(B) of the NIRC, As Amended. Tax on shares

revenue issuances or parts thereof, which are inconsistent with these Regulations are hereby repealed or modified accordingly. SECTION 3. Repealing Clause. All revenue rules and regulations and other

SECTION 4. Effectivity. -- These Regulations shall take effect immediately.

shall be provided with three (3) certified copies of this Revenue Regulations. The Office of the National Administrative Registrar (ONAR) of the U.P. Law Center

Recommending Approval: CARLOS G. DOMIN Secretary of Finance SEP 2 8 2020

HIREAUOF INTERN CRNALCOMMUMCE Commissioner of Internal Revenue GRT SEP 3 0 2020 CAESAR R. DULAY waeai 036504 MUREAUOF INTERNALREVENUE RECORDS MGT.DIVISION GG NntYiN 3:00 P.M1 SEP. 3 O 2020 Wm.