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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

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Summary

RR No. 23-2020 implements Section 6 of RA No. 11494 (Bayanihan to Recover as One Act) on the repeal of the tax on the Initial Public Offering (IPO) of shares of stock under Section 127(B) of the NIRC of 1997, as amended.

Key points

  1. Repeal of the IPO tax. The tax on shares of stock sold, bartered, exchanged or otherwise disposed of through an IPO is repealed. Sales through IPO of shares in closely held corporations are no longer subject to the tax under Section 127(B) once RA No. 11494 takes effect.

Who is affected

  • Closely held corporations selling shares through an IPO

Deadlines and effectivity

  • Applies upon the effectivity of RA No. 11494

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.