b.Installment sale - capital gains tax return shall be filed and the tax paid within 30 days following the receipt of such installment payment by the seller. The date shown in the instrument of sale shall be presumed to be the date of actual receipt unless the contrary is shown by the seller.8.EXCEPTION FROM THE TAX- Requisites:a.Seller is a natural person (individual);b.Real property sold is his principal residence;c.Proceeds of the sale is fully utilized in acquiring or constructing a new principal residence within 18 calendar months from the date of sale. Otherwise, any unused portion shall be subject to the capital gains tax, as follows:Gross selling price orFMV at date of sale,whichever is higherd.The BIR is duly notified of the taxpayer’s intention to avail of the tax exemption within 30 days from the date of sale through a prescribed return;e.The tax exemption can only be availed of once every 10 years; andf.The historical cost or adjusted basis of the real property (principal residence) sold shall be carried over to the new principal residence built or acquired.b.Sale or exchange of shares of stock in a domestic corporation considered capital asset:1. Persons liable to the tax:a.Individual taxpayers – citizen or alien b.Corporate taxpayers – domestic or foreignc.Other taxpayers such as estate, trust, trust funds and pension, among others2. Persons exempted:a.Gain derived by dealers in securitiesb.Shares sold or disposed of through the Philippine Stock Exchange (now a percentage tax)3. Rates of tax:a. Sales outside of the Philippine Stock Exchange (not traded) – on net capital gain:Not over P100,000–5%Over 100,000–10%b. Sales through the Philippine Stock Exchange (listed and traded) – 1/2 of 1% imposed on the gross selling price (now classified as percentage tax)4. Computations:a. Selling price:1. FMV of the shares, transferred or exchanged.2. Traded through the Philippine Stock Exchange – FMV is the actual selling price.3. Not traded, but listed – FMV is the highest closing price on the date of sale. Where no sale was made, it is the highest closing price on the date nearest.x=Taxable portionUnutilized amountGross selling price
TAXATION Page 4 of 84. If not listed – FMV is the book value nearest.b. Cost or basis:1. If can be identified – actual purchase price (specific identification method)2. If cannot be identified – FIFO method3. If books are maintained – moving average4. In all cases – it has to have a cost (for stock dividend)c. Nature:1. Non–deductibility of wash sales.2. Capital losses may be deducted from the capital gains for the same taxable year only. Net capital loss carryover is not allowed. 3. No holding period for both capital gains and capital losses.5. Filing of return and payment of the tax:a.Sold outside the Philippine Stock Exchange – capital gains tax return is filed and payment of the tax is made within 30 days after each sale transaction and a final consolidated return of all
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- Spring '13
- Cost Accounting, Taxation in the United States