DEVELLES, JOHN RENZO G.

SBAC-2B *Capital Gain

1)Sale of shares of 15% CGT (net)
Notes in DEALINGS in PROPERTIES domestic corporations
directly to a buyer
2) Sale of shares of a Stock transaction tax
Dealings in property- refers to the disposal of domestic corporations 6/10 of 1% of gross
assets(1)ordinary assets or (2)capital assets through LSE selling price
either through sale or exchanges. 3) Sale of real CGT 6% (SP or FMV or
properties classified as ZV whichever is
Ordinary assets capital assets in the higher) (gross)
1. Stock in trade of the taxpayer or other PH.
property of a kind which would properly TRIVIA: TREATMENT
be included in the inventory of the FOR THE SALE OF
taxpayer if on hand at the close taxable PRINICIPAL RESIDENCE
year. 4)Sale of real Either 6% CGT or basic
2. Property used in trade or business subject properties classified as tax at the opt. of the
to depreciation. capital assets in the taxpayer.
3. Real property held by the taxpayer PH to the gov’t., it’s
primarily for sale to customers in the agencies or GOCCs by
ordinary course of trade or business. an individual taxpayer.
4. Real property used in trade or business of 5)**Other Basic income tax
the taxpayer.

Note: Ordinary assets are for sale in the **Capital Gains subject to Basic Income Tax
ordinary course of business and/or properties RULES:
use in business. 1) Capital asset
2) From sale or exchange
Capital assets
Note: If it is not in the criteria of ordinary assets, 3) net capital loss- can’t be deducted in
it is capital asset. Income Tax Return; net capital gain- add to
Ordinary assets will automatically classified as Income Tax Return.
capital assets if it is not used in business for two
years.(NEED PROOF) 4) Holding period- applicable only to
individual taxpayers, estates, trusts(12 months
APPLICABLE TAXES or less=100% ; more than 12 months=50%)
Ordinary Gain= Basic income tax
5) Net Capital Loss Carry-over - applicable
*CAPITAL GAIN only to individual taxpayers. The net capital loss
CGT? If YES, subject to 6% or 15% CGT carry-over should not be more than the net
taxable income at the time the net capital loss
If NO! was incurred.

Subject to Stock Transaction Tax? Yes, subject to

6/10 of 1% of gross selling price

If NO!

Then it is subject to BASIC INCOME TAX!