HQ05 - Capital Gains Taxation

8/17/2019 HQ05 - Capital Gains Taxation

1/10

Northern CPAR: Taxation – Capital Gains Taxation

NORTHERN CPA REVIEW4th Floor Pelizloy Centrum, Lower Session Road, Baguio City, Philippines

Mobile Numbers SM!R" #$%$4&$'()& * +LB- #$%(%'%&%#4-.mail !ddress n/par0yahoo1/om

REX B. BANGGAWAN, CPA, MBA

TAXATION

CAPITAL GAINS TAXATION "he assets o2 the business are /lassi3ed as'1 Ordinary assets – in/ludes

a1 sto/ in trade o2 the ta5payer, or other property o2 a ind whi/h would properly bein/luded in an in6entory o2 the ta5payer i2 on hand at the end o2 the ta5able year

b1 properties held by the ta5payer primarily 2or sale to /ustomers in the ordinary/ourse o2 trade or business7

/1 properties used in trade or business o2 a /hara/ter whi/h is sub8e/t to allowan/e2or depreciation7 and

d1 real properties used in trade or business-5amples in6entories, property, plant and e9uipment

%1 Capital assets – any other assets that does not 2all under the de3nition o2 ordinaryassets-5amples in6estment properties, notes re/ei6ables and in6estment in e9uity or debtse/urities :2or a non.se/urity dealer ta5payer;

+ains arising 2rom sale o2 ordinary assets are /alled o2 '? o2 selling pri/e1

2. +ains under similar /onditions by security brokers or dealers

(hen to )*e the C+it* Gins T# et-rns'1 Per transaction basis @ithin A# days a2ter ea/h transa/tions%1 Annual basis

a1 For indi6iduals n or be2ore !pril ') o2 the 2ollowing yearb1 For /orporations n or be2ore the ')th day o2 the 2ourth month 2ollowing the

/lose o2 the ta5able year

(hen to +/ the $+it* gins t#'1 L#!p s#! pon date o2 3ling the return with the Bureau :within A# days 2rom

date o2 sale;%1 Install!ent ta5 on installments is due within A# days 2rom re/eipts o2 ea/h

installments

o$-entr/ St+ T#

1

Driven for real excellence! TAX by Rex B. Banggaan, CPA, MBA TAX – 6th Batch – HQ05

mailto:[email protected]:[email protected]


2/10

Northern CPAR: Taxation – Capital Gains Taxation

• Par $al#e stoc"% P#1()DP%## or 2ra/tional part o2 the par 6alue o2 due bill,/erti3/ate o2 obligation or stock

• No&par stoc"% %)? o2 the do/umentary stamp ta5 paid on the original issue o2 saidsto/1 :"he do/umentary sto/ on original issue o2 non.par sto/ is based on a/tual/onsideration 2or the issuan/e Se/1 '(4 NERC;

• Li!it% nly one ta5 shall be /olle/ted on ea/h sale or trans2er o2 sto/ orse/urities 2rom one person to another regardless o2 whether or not a /erti3/ate o2 sto/ is issued or obligation is issued, indorsed, or deli6ered in pursuan/e o2 su/h

sale or trans2er1• 'eadline% o/umentary stamp ta5 return shall be 3led within 10 days after the

close of the onth when the ta5able do/ument was made, signed, issued, a//eptedor trans2erred, and the ta5 thereon shall be paid at the same time the return ispaid1

B. Sale, exchange or other disposition o real property in the Philippinesclassi(ed as capital assetRe9uisites

a1 "he real property is lo/ated in the Philippines1b1 "he property is /lassi3ed as /apital asset1/1 "he ta5payer is an indi6idual or a domesti/ /orporation1d1 "he ta5payer is other than a 2oreign /orporation1

T# te n& T# Bsis' 2" # 3the higher of Gross Se**ing Pri$e or Fir 4r5et 6*-e7

"he air !ar"et $al#e 2or purposes o2 the /apital gains ta5 is whi/he6er is higher o2'1 )onal $al#e as pres/ribed by the Commissioner o2 Enternal Re6enue%1 Assessed $al#e as determined by the Pro6in/ial or City !ssessorGs Hi/e

Gross selling price "he amount o2 any money re/ei6ed plus the 2air maret 6alue o2 any property re/ei6ed1 Enterest on the selling pri/e shall be treated separately as !ther

"ncoe ta5able under regular in/ome ta5ation1

E#$ess 4ortgge Ass-e&

"he e5/ess o2 the mortgage assumed o6er the /ost o2 the property is in/luded both ininitial payment and selling sin/e it is a /onstru/ti6e re/eipt o2 in/ome7 in other words,it represents


3/10

Northern CPAR: Taxation – Capital Gains Taxationb1 the buyer is the go6ernment, its politi/al subdi6isions or agen/ies or +CCs

T# E#e+tion'"he sale may be e5empted 2rom the payment o2 /apital gains ta5 pro6ided the 2ollowing/onditions are met1. "he seller is an indi6idual /itizen or resident alien1

2. "he real property sold is his principal residence. Principal #esidence – the pla/e where an indi6idual person resides /omprising o2 thehouse and the lot to where it ere/ts7 in /ase the interest on the land /omponent is held

by other persons, only the dwelling house is /onsidered prin/ipal residen/e1"he residential address indi/ated in the latest in/ome ta5 return immediately be2orethe date o2 sale is /on/lusi6e presumed to be the true residen/e1 "he BarangayCaptain Certi3/ation or Building !dministrator Certi3/ation in the /ase o2 /ondominium residen/es is no longer honored1

$. "he 2ull pro/eed o2 the sale is utilized in a/9uiring another residen/e1 %. ! new residen/e must be a/9uired or /onstru/ted within '& /alendar months 2rom the

date o2 sale1&. "he BER is duly noti3ed by the ta5payer o2 his intention to a6ail o2 the ta5 e5emption

within A# days 2rom the date o2 sale through a pres/ribed return1'. "he /apital gains ta5 thereon is held in es/row in 2a6or o2 the go6ernment1

(. "he e5emption /an only be a6ailed on/e e6ery '# years1). "he histori/al /ost or ad8usted basis o2 the real property :prin/ipal residen/e; sold

shall be /arried o6er to the new prin/ipal residen/e built or a/9uired

Should there be any portion o2 the pro/eeds o2 sale not utilized 2or the re/onstru/tiono2 a new residen/e, the same shall be ta5able1 "he ta5 on the unutilized portion shallbe determined as 2ollows

T# Bsis of Ne; Prin$i+* esi&en$e'*ax +asis re2ers to the /ost or ad8usted /ost o2 a property 2or ta5 purposes and hen/e theamount dedu/tible 2or ta5 purposes in determining gain or losses in disposal o2 therelated property i2 the related transa/tion is ta5able under the progressi6e system o2 ta5ation1 +enerally, when a property is a/9uired by pur/hase, the /ost is the ta5 basis1

! ta5 basis redu/tion may result i2 the pro/eeds o2 the disposition o2 a prin/ipal residen/eis not 2ully utilized in the a/9uisition or /onstru/tion o2 a repla/ement1 Liewise a ta5basis in/rease results when additional e5penditures were in/urred by the ta5payer inse/uring a repla/ement prin/ipal residen/e1

Less thn f-** -ti*i


4/10

Northern CPAR: Taxation – Capital Gains TaxationRealty

e6eloperSe/urityealer

Mer/handiser

Ja/ant lotHi/e suppliesomesti/ sto/sBonds

!//ountsDnotes re/ei6ablesHi/e building

Hi/e e9uipmentsLand where the oHi/e building standsPersonal /ar o2 the businessproprietor.ta5payerPersonal house and lot o2 theproprietor.ta5payer

ewelry o2 the proprietor.ta5payer

ILL POBLE4S' CAPITAL GAINS ON T- 'ISPOSAL O. 'O/STIC STOC0S

A. Trns$tion* C+it* Gins T# For ea/h o2 the 2ollowing s/enarios, /ompute the /apital gains ta5

I**-strti%e CsesC+it*

Gins T# '1 !ndy sold domesti/ sto/s through the PS- at a gain o2 P4##,###2. !ndy, a se/urity dealer, sold domesti/ sto/s through the PS- at a gain

o2 P4##,###A1 !ndy, a se/urity dealer, sold domesti/ sto/s dire/tly to a buyer at a

gain o2 P4##,###41 !ndy, a realty dealer, sold domesti/ /ommon sto/ to -F, En/1 at a

gain o2 PA##,###1)1 !BC, En/1 sold domesti/ sto/s though the PS- at a gain o2 P4##,###I1 !BC, En/1 issued its shares o2 sto/ at PA##,### in e5/ess o2 its par

6alue1

(1 !BC, En/1 e5/hanged the shares o2 -F, En/1 it a/9uire 2or P',###,###2or a lot 6alued at P',4##,###1

&1 !ndy sold his in6estment in domesti/ sto/s to the issuing Company, !BC, En/1 "he transa/tions realized a gain o2 PA##,###1

$1 !ndy sold domesti/ bonds through the P- at a gain o2 P'##,###1'#1!ndy sold domesti/ bonds dire/tly to buyer at a gain o2 P4##,###''1!ndy sold his interest in a partnership 2or P4##,###1 Ois interest had a

ta5 basis o2 PA##,### at the date o2 sale1'%1!BC, En/1 a/9uired -F sto/ rights 2or P%##,###1 !BC subse9uently

disposed this rights 2or P4##,###1'A1!ndy pur/hased a sto/ option 2rom -F, En/1 Subse9uently, !ndy sold

this options at a gain o2 P)#,###1

'41!ndy pur/hased domesti/ /ommon sto/ 2or P'##,### and sold thesame 2or P',###1 !t the date o2 sale the sto/ has a 2air maret

6alue o2 P%'#,###1')1!ndy pur/hased ordinary shares 2or P%##,### 2rom -F, En/1, a

resident /orporation operating in the Philippines1 !2ter % years, it soldthe same dire/tly to buyer 2or PA##,### when the 2air maret 6aluewas P%,###1

B. Ann-*i


5/10

Northern CPAR: Taxation – Capital Gains Taxation# buyer

AD'4D$ omesti/ pre2erredsto/s

A##,### %)#,###

"hrough PS-

4D%%D$ Resident /orp1sto/s

',### '%#,###

ire/tly tobuyer

ID'&D$ omesti/ sto/ options

')#,### '%#,###

ire/tly tobuyer

&D')D$ Resident /orp1

bonds

%##,### %4#,##

#

ire/tly to

buyer$D%D$ omesti/ /ommonsto/s

A##,### A%#,###

"hrough PS-

$D%4D$ omesti/ pre2erredsto/s

%,### A##,###

ire/tly tobuyer

'#D%&D$ omesti/ sto/ rights

'##,### '%#,###

ire/tly tobuyer

'%D''D$

omesti/ pre2erredsto/s

4##,### A,###

ire/tly tobuyer

!ssume all /apital gains or losses are long.term and that the ta5payer has otherregular in/ome o2 PA##,###1

e=-ire&' Compute the 2ollowing'1 Capital gains ta5 payable at year.end %1 "otal per/entage ta5 paid A1 "otal regular in/ome o2 the ta5payer

C. S+e$i* Cses'1 !BC, En/1, a domesti/ non.se/urity dealer, had the 2ollowing transa/tions in6ol6ing

the se/urities o2 non.listed domesti/ /orporations during %#'#

ate Pur/hase

Sale Pri/e Se/urity Capital +ains"a5

%D4D$ '#,### . P'#

+SM /ommonsto/s

ADID$ ',### . ',### PL" bonds4D)D$ . '#,### %' +SM /ommonsto/s

4D')D$ . I## ','## PL" bonds'#D%&D

$'#,### . 'I +SM /ommon

sto/s''D')D

$. 4## $ PL" bonds

''D%AD$

. '#,### '% +SM /ommonsto/s

'%D)D$ )## . $)# PL" bonds'%D'4D

$

&,### . 'A +SM /ommon

sto/s !BC, En/1 had PA##,### operating in/ome1 +SM and PL" are both domesti//orporations1

e=-ire&' Compute the 2ollowing'1 Capital gains ta5 per transa/tions where appli/able%1 !nnual /apital gains ta5 payable or :re2undable; A1 %#'# ta5able in/ome o2 the ta5payer 41 "a5 basis o2 the +SM /ommon sto/s )1 "a5 basis o2 the PL" bonds

%1 !ndy e5/hanged his -F, En/1 shares whi/h he pre6iously a/9uired at P%##,### 2orthe shares o2 !BC, En/1 6alued at PA##,### in pursuant to a merger agreementbetween -F, En/1 and !BC, En/1 Compute the /apital gains ta51

A1 n uly ', %#'#, !ndy sold his domesti/ sto/s with aggregate par 6alue o2P%)#,### and a/9uisition /ost o2 PA##,### to Betty 2or P)##,###1 Betty made adownpayment o2 P)#,### and signed a note 2or the balan/e payable in $ semi.annual installments starting e/ember A', %#'#1

5



6/10

Northern CPAR: Taxation – Capital Gains Taxatione=-ire&''1 Compute the %#'# /apital gains ta5 %1 Compute the do/umentary stamp ta5 on the sale

ILL POBLE4S' CAPTIAL GAINS TAX ON T- 'ISPOSAL O. *AL P*OP*T+

A. S$o+e of the 2" C+it* Gins T#

I**-strti%e Cses'C+it*

Gins T# '1 !BC, En/1 disposed a 6a/ant lot /osting P%,###,### at a gain o2

P',###,###1 "he lot has a 2air 6alue o2 P%,)##,### at the date o2disposal1

2. !BC, En/1 disposed its old oHi/e building with a /arrying amount o2P%,###,### at a gain o2 P',###,###1 "he lot has a 2air 6alue o2P%,)##,### at the date o2 disposal1

A1 -F, En/1, resident 2oreign /orporation, disposed its head9uarter with/arrying amount o2 P%,###,### at a gain o2 P',###,###1 "hehead9uarter has a 2air 6alue o2 P4,###,### at the date o2 disposal1

4. !ndy sold his old residen/e 2or P4,###,### to 3nan/e his business1 Oisold residen/e has an appraisal 6alue o2 P),###,###, assessed 6alue o2

PA,###,### and zonal 6alue o2 P4,)##,###15. !ndy, a dealer o2 personal property, sold a 6a/ant lot in Baguio City at

a gain o2 P4##,###1 "he lot /ost him PI##,### and has an assessed 6alue and zonal 6alue o2 P#,### and P',%##,###, respe/ti6ely1

I1 !ndy wishes to e5pand business1 Oe sold his warehouse /onsisting o2a lot and building 2or P),###,###1 "he lot and building has assessed

6alue o2 P4,###,### and zonal 6alue o2 P4,)##,###1(1 !ndy sold one o2 his house and lot in apan at a gain o2 P%,###,###1

"his property has an appraised 6alue o2 P),###,### and werea/9uired at PA,###,###1

&1 !BC Realty Corporation sold an unde6eloped lot in Pangasinan1 "helot /ost P%,###,### and were sold at its /urrent 2air 6alue o2

PA,###,###1B. S+e$i* Cses

1. S$o+e of E#e+tionEn2ormation 2or the property disposed o2Qonal 6alue P

A,###,### !ssessed 6alue %,)##,### !ppraised 6alue A,)##,###Cost %,###,###

For ea/h o2 the 2ollowing independent, indi/ate the /apital gains ta5I**-strti%e Cses' CGT

1. !ndy sold his prin/ipal residen/e 2or P4,###,###1 Oe immediatelyrepur/hased a new residen/e 2or P4,%##,###1

2. !ndy sold his prin/ipal residen/e 2or P%,)##,###1 Oe immediatelyrepur/hased a new residen/e 2or P%,###,###1

A1 !ndy sold his prin/ipal residen/e 2or P%,)##,###1 Oe immediatelyrepur/hased a new residential lot 2or P%,###,###1

41 !ndy sold one o2 his residential property 2or P4,###,###1 Oeimmediately repur/hased a new residen/e 2or P4,%##,###1

5. !ndy sold his residen/e lot 2or P4,###,###1 Oe immediatelyrepur/hased a new residen/e 2or P4,%##,###1

I1 -F, En/1 sold a 6a/ant lot 2or P4,###,###1 @ithin '& months, itused the pro/eeds to pur/hased residential houses 2or its dire/tors

and oHi/ers17. !ndyGs house and lot was one o2 the se6eral properties to be

e5propriated by the go6ernment to build on an airport1 "hego6ernment paid !ndy PA,###,###1 !ndy leases his residen/e sin/ethen1 !ndy opted to be sub8e/ted to /apital gains ta51

8. !ndyGs house and lot was 2ore/losed a2ter his 2ailure to pay the

6



7/10

Northern CPAR: Taxation – Capital Gains TaxationP%,###,### mortgage on the property1 "he ban paid him P)##,###2or a2ter the au/tion sale1

>. (ith ortgge !ndy sold his house and lot with 2air 6alue o2 P%,)##,### 2or PA,###,### on uly ',%#'#1 "he house and lot, whi/h was sub8e/t to P%,###,### mortgage was a/9uired2or P',)##,### in %##)1 "he buyer assumed the mortgage on the property andsigned a note payable 2or the balan/e payable in ) semi.annual installments1Re9uired Compute the 2ollowing

'1 Enitial payment %1 Contra/t pri/e A1 Capital gains ta5 in %#'#

?. Inst**entMs1 Shiela Longboan sold her residential house under the 2ollowing terms

Cash re/ei6ed, anuary '#, %##I P'##,###

!mount re/ei6ed, une '#, %##I '##,###Enstallment due, une '#, %##( I##,###

!dditional En2ormation Cost o2 the land P

')#,### Mortgage assumed by the buyer %##,### Mortgage on the land e5e/uted by thebuyer in

2a6or o2 the seller to guaranteepayment

I##,###

e=-ire&' Compute the 2ollowing'1 Selling pri/e

a1 P ()#,### b1 P #,### /1 P &)#,### d1 P',###,###

%1 Contra/t pri/ea1 P ()#,### b1 P #,### /1 P &)#,### d1 P',###,###

A1 Enitial paymentsa1 P '##,### b1 P %##,### /1 P %)#,### d1 P ')#,###

41 Capital gains ta5 in %##Ia1 P'),### b1 P'(,I4( /1 P%%,AAA d1 P I#,###

)1 o/umentary stamp ta5a1 P'%,### b1 P'%,()# /1 P'4,A%) d1 P'),###

CPA EXA4 ILL POBLE4S''1 "he term


8/10

Northern CPAR: Taxation – Capital Gains Taxation%#,###

Enstallment due, /tober '#,%##$

A#,###

Enstallment due, /tober '#,%#'#

(),###

Enstallment due, /tober '#,%#''

(),###

Oow mu/h was the /apital gains ta5 due in %##$

a1 P )##1## b1 P 4)#1## /1 PI%)1## d1 P()#1##I1 Oow mu/h was the do/umental stamp ta5 due

a1 P I##1)# b1 P )%)1%) /1 P )I%1)# d1 P I'%1)#

(1 "o 2a/ilitate the disposal o2 his shares, Freddie sold his shares 2or PAI#,### at '#?dis/ount 2rom its 2air 6alue1 -6en at dis/ounted pri/e, Freddie reports a gain o2P'I#,###1 Compute the /apital gains ta5 on the transa/tion1a1 P %',### b1 P '',### /1 P 'I,### d1 P '),###

&1 @hi/h o2 the 2ollowing is not a re9uisite o2 installment payment o2 /apital gains ta5 ininstallment in6ol6ing the sale o2 personal propertya1 ownpayment must not e5/eed %)? /1 "he item sold is not in6entoriable

b1 Selling pri/e must e5/eed P',### d1 Enitial payment must not e5/eed%)?

$1 !bdul Rhamanam !hmin, a non.resident alien disposed his sto/ in6estments in adomesti/ /orporations to uan dela Cruz, a non.resident /itizen, at a gain o2 PA##,###1@hi/h statement is /orre/ta1 "he sale is not sub8e/t to /apital gains ta5 sin/e the property in6ol6ed is a personal

property is deemed lo/ated abroad1b1 "he sale is not sub8e/t to /apital gains ta5 as uan dela Cruz, the buyer, is a non.

resident indi6idual1/1 "he sale is sub8e/t to /apital gains ta5 e6en i2 the sale o//urred outside the

Philippines1d1 None o2 these1

'#1Meio !/ebo is a sto/ broer and holds '#,### ordinary sto/ o2 San MiguelCorporation, a domesti/ /orporation, a/9uired at P'## per share1 Ois 6aluation 2orSan Miguel Corporation indi/ates that San MiguelGs sto/s will de/line in the near2uture1 E2 Meio sells his sto/ in6estment dire/tly to a buyer, Qeus Millan, at P'') pershare, how mu/h is the /apital gains ta5 payable on the transa/tiona1 P),### b1 P'#,### /1 P),()# d1 P #

''1Mr1 !/ebo, a non.se/urity broer or dealer, made the 2ollowing dispositions dire/tly tobuyer

ate omesti/ se/urities +ainD:Loss;%D4D& !ba/us ordinary shares P

')#,###.)D&D& PL" bonds ')#,###.(D')D& +lobe pre2erred shares : ,#

##;$D%#D& +lobe /ommon shares )#,###.''D')D& Metroban ordinary

shares,###.

Compute the amount o2 /apital gains ta5 payable :re2undable; o2 Mr1 !/ebo 2or the year %##&1a1

:P',)##; b1 P'),### /1 P # d1 PA&,###

'%1@hi/h o2 the 2ollowing entities is not e5empt to the 3nal /apital gains ta5 imposed on

the sale, e5/hange and other disposition o2 real propertya1 Bans on their sale real and other assets a/9uired in the Philippinesb1 Resident /orporations on their land not used in business in the Philippines/1 Real estate de6eloper or dealer on their sale o2 /ondo unitsd1 Resident /itizen on his sale o2 one o2 his residen/e under 2ore/losure sale

'A1"he a/tual /apital gain deri6ed by an indi6idual ta5payer may be in/luded to allin/ome sub8e/t to progressi6e in/ome ta5 when

8



9/10

Northern CPAR: Taxation – Capital Gains Taxationa1 Et in6ol6es sales o2 real property to non.residentsb1 Et in6ol6es sales o2 real property to the go6ernment/1 Et in6ol6es sales o2 personal property to non.residentsd1 Et in6ol6es sale o2 domesti/ sto/s dire/tly to ta5payer

'41Ms1 anet Ranillo, a real estate dealer, sold a real property 2or P%##,### on /tober%$, %##( in installment1 "he /ost o2 the property was P')#,###1 "he terms o2 the saleagreed upon by Ms1 Ranillo an the buyer wereownpayment P 4#,###

Balan/e, payable in monthly installmentso2 P'#,###

beginning No6ember %$, %##( until2ully paid

'I#,###

Oow mu/h in/ome will be reported in %##(a1 P'%,)## b1 P'),### /1 P)#,### d1 P(),###

')1Ms1 Lyn Rosales, a real estate dealer, sold a real estate 2or P%,###,### on No6ember%$, %##(1 "he /ost o2 the property was P',)##,###1 "he terms o2 the sale were as2ollowsownpayment P

4##,###

Balan/e, payable in monthly installmentso2 P'##,###

beginning e/ember %$, %##( until2ully paid

',I##,###

Oow mu/h was the in/ome to be reported in %##(a1 P'##,### b1 P''%,### /1 P'%),### d1 P'4#,###

'I1Compute the /apital gains ta5 in the abo6e /ase1a1 P A#,### b1 P 4#,### /1 P'%#,### d1 P #

"he 2ollowing problems relates to numbers '( through %#'(1RaH -s/uela sold his prin/ipal residen/e 2or P),###,###1 Ois prin/ipal residen/e was

a/9uired at P%,###,### and has a 2air maret 6alue o2 PI,###,### at the date o2 sale1

@ithin '& months, RaH re/onstru/ted his new prin/ipal residen/e 2or P4,)##,###1

Compute the /apital gains ta5 to be deposited in es/row1a1 P %(#,### b1 P A##,### /1 PAI#,### d1 P #

'&1"he /ost basis o2 the new residen/e isa1 P',#,### b1 P',)##,### /1 PA,()#,### d1

P4,)##,###

'$1"he amount o2 /apital gains ta5 to be released to RaH isa1 P%4#,### b1 P%(#,### /1 PA##,### d1 PA%4,###

%#1Compute the /ost basis o2 the new residen/e i2 it was a/9uired 2or P),%##,###1a1 P%,###,### b1 P%,%##,### /1 P',(AA,AAA d1

P4,AAA,AAA

%'1@hi/h is not a re9uisite o2 the wash sales rule o2 se/uritiesa1 "he sale or other disposition o2 se/urities resulted to a lossb1 "here was an a/9uisition or /ontra/t or option 2or a/9uisition o2 sto/ or se/urities

within A# days be2ore the sale or a2ter the sale1/1 "he sto/ or se/urities sold were substantially the same as those a/9uired within

the I'.day period1d1 "he seller must be a dealer in se/urities in a short sale transa/tion1

%%1"he 2ollowing are not substantially identi/al se/urities, e5/ept onea1 Common sto/ and pre2erred sto/ b1 Joting and non.6oting /ommon sto/

/1 Bonds with diHerent interest rates or se/ured and unse/ured bondsd1 Similar bonds with diHerent maturity dates

%A1"o whi/h o2 the 2ollowing is the /apital gains ta5 re9uired to be 3led :Sele/t thee5/eption1;a1 !uthorized !gent Ban under the 8urisdi/tion o2 the R where the seller is

re9uired to register

9



10/10

Northern CPAR: Taxation – Capital Gains Taxationb1 Re6enue /olle/tion oHi/er/1 uly authorized City or Muni/ipal "reasurer o2 the R where the seller is

re9uired to registerd1 Hi/e o2 the Commissioner o2 Enternal Re6enue

... -nd o2 Oandouts ...

10


Documents

HQ05 - Capital Gains Taxation