RR No. 6-2013: Amends certain provision of RR No. 6-2008 entitled “Consolidated Regulations Prescribing the Rules on the Taxation of Sale, Barter, Exchange or Other Disposition of Shares of Stock Held as Capital Assets”

Summary

RR No. 6-2013 amends Section 7 of RR No. 6-2008, which covers the taxation of shares of stock held as capital assets, by changing the definition of fair market value of unlisted shares.

Key points

1. Value of unlisted shares. For shares not listed and traded in a local stock exchange, the value at the time of sale is the fair market value. The Adjusted Net Asset Method is used, with all assets and liabilities adjusted to fair market values.
2. Indicated value of equity. The adjusted assets minus the adjusted liabilities give the indicated value of the equity.
3. Appraised value of real property. The appraised value of real property at the time of sale is the highest of three amounts: the value set by the Commissioner, the value in the schedule fixed by the Provincial and City Assessors, or the value set by an Independent Appraiser.

Who is affected

• Sellers of shares of stock not traded through a local stock exchange

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