Chapter 6 – Capital Gains Tax

Problems :

1. Ado Nahan sold his shares of stocks with SMB Corp. for P4,000,000. The shares were
purchased by Ado Nahan for P 2,360,000 and Ado Nahan paid the Commission expense of
P100,000 and documentary stamps tax of P 40,000. How much is the tax on the sale if the
sale was made through the Philippine Stock Exchange?

P 24,000 computed as follows:

Selling Price x .006 = Stock Transaction Tax

P4,000,000 x .006 = P24,000

2. Ado Nahan sold his shares of stocks with SMB Corp. for P4,000,000. The shares were
purchased by Ado Nahan for P 2,360,000 and Ado Nahan paid the Selling expenses of
P100,000 and documentary stamps tax of P 40,000. How much is the tax on the sale if the
sale was made directly to the buyer?

You should determine the GAIN

P225,000 computed as follows:

Selling price . . P4,000,000

Less: Costs & Exps . 2,500,000
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Net Capital Gain . P1,500,000

x rate . . . 15%
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Capital Gains Tax P225,000

vvvvvvvvv

Computation of Cost and expenses:

Purchase price. P2,360,000

Selling Exp. 100,000
Doc. Stamps tax 40,000
--------------------

Total . P2,500,000
3. Yu Taan sold his land located in Panglao for P12,000,000. The BIR Zonal value of the land
is P15,000,000 and fair value in the Tax Declaration of the land is P5,000,000. The land was
acquired by Yu Taan before for P8,000,000. How much is the capital gains tax due?

P900,000 computed as follows:

P15,000,000 x 6% = P900,000

You should determine the highest between :

The selling price, P12,000,000

The fair market value, P5,000,000

The zonal value, P15,000,000

The highest will be the basis of the CGT