Tax notes: CAR required on transfer of shares not traded in exchange-A A +A
Monday, September 17, 2012
THE recently issued Revenue Memorandum Circular (RMC) No. 37-2012 clarifies Section 11 of Revenue Regulations (RR) No. 06-2008 or the “Consolidated Regulations Prescribing the Rules on Taxation of Sale, Barter, Exchange or Other Disposition of Shares of Stock Held as Capital Assets.”
RMC No. 37-2012 states that in order to transfer ownership of shares of stock not traded in the stock exchange, a Certificate Authorizing Registration (CAR) is necessary before any transfer be made to the books of a corporation. The receipt evidencing payment of the tax is also required to be filed with and recorded by the secretary of the corporation pursuant to Section 11 of RR No. 06-2008. (Source: Punongbayan & Araullo)
Published in the Sun.Star Cebu newspaper on September 18, 2012.