Tax Form

BIR Form 1707 - Capital Gains Tax Return (For Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange)

Documentary Requirements

Mandatory Requirements [additional two (2) photocopies of each document]:

1. Taxpayer Identification Number (TIN) of Seller/s and Buyer/s;

2. Duly Notarized Original Deed of Absolute Sale/Document of Transfer;
3. Stock certificate;
4. Proof of acquisition cost (i.e. Deed of Sale: fair market value (FMV) at the time of acquisition);
5. Validated return and Original Official Receipt/Deposit Slip as proof of payment; for no payment return, copy of
Acknowledgment Receipt of return filed thru eBlRForms;
6. Secretary’s Certificate or Board Resolution, approving the sale/transfer of the shares of stocks and indicating the name and
position of the authorized signatory to the Dee of Sale/Assignment, if the seller/transferor is a corporation;
7. Duly Notarized Special Power of Attorney (SPA) for the transacting party if the person signing is not one of the parties to the
Deed of Transfer;

Additional Requirements, if applicable [additional two (2) photocopies of each document]:

 For claiming expenses of sale - Proof of claimed deductions such as official receipt and/or invoices;
 For shares of stocks not listed/not traded - Latest Audited Financial Statement of the issuing corporation with computation
of the book value per share;
 For shares of stocks listed/traded - Price index from the Philippine Stock Exchange (PSE)/latest FMV published in the
newspaper at the time of transaction;
 For club shares - Price published in newspapers on the transaction date or nearest to the transaction date;
 Notarized Original Special Power of Attorney (SPA), if the person transacting/processing the transfer is not a party to the
transaction;
 Certificate of Exemption/BIR Ruling issued by the Commissioner of Internal Revenue or his authorized representative, if tax
exempt;
 Such other documents as may be required by law/rulings/regulations/etc.

Procedures

 Who shall file

The Capital Gains Tax Return (BIR Form No. 1707) shall be filed in triplicate by every natural or juridical person, resident or non-
resident, for sale, barter, exchange or other onerous disposition of shares of stock in a domestic corporation, classified as capital
assets, not traded through the local stock exchange.

Taxpayers who are filing BIR Form No. 1707 are excluded in the mandatory coverage from using the eBIRForms (Section 2 of RR No.
9-2016).

 When and Where to File and Pay

The Capital Gains Tax Return (BIR Form No. 1707) shall be filed and paid within thirty (30) days after each sale, barter, exchange or
other disposition of shares of stock not traded through the local stock exchange with any Authorized Agent Bank (AAB) under the
jurisdiction of the Revenue District Office (RDO) where the seller/transferor is required to register.

When the return is filed with an AAB, taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank teller shall
machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall stamp mark the word
“Received” on the return and also machine validate the return as proof of filing the return and payment of the tax by the taxpayer,
respectively.
The machine validation shall reflect the date of payment, amount paid and transactions code, the name of the bank, branch code,
teller’s code and teller’s initial. Bank debit memo number and date should be indicated in the return for taxpayers paying under the
bank debit system.

Filing and payment may also be made using the electronic filing and payment facilities of the BIR (i.e., EFPS/eBIRForms and G-cash,
credit, debit card/prepaid card)

Tax Rates

 Effective January 1, 2018 to present (Republic Act (RA) No. 10963/TRAIN Law)

A. For Individual - 15 %

B. For Corporation:

B.1 Domestic - 15 %
B.2 Foreign:

B.2.1. Not Over P100,000 - 5.0 %

B.2.2. On any amount excess of P100,000 - 10 %

 Effective January 1, 1998 to December 31, 2017 (RA No. 8424/NIRC of 1997)
o Not over P 100,000 - Five percent (5%)
o On any amount in excess of P 100,000 - Ten percent (10%)

BIR FORM 2000-OT DOCUMENTARY STAMP TAX DECLARATION RETURN (ONE-TIME TRANSACTIONS)

Who Shall File

The return shall be filed in triplicate by the following person making, signing, issuing, accepting or transferring the document or
facility evidencing transaction:

1. Every natural or juridical person, resident or non-resident, for donation, sale, barter, exchange or other onerous disposition of
shares of stock in a domestic corporation, classified as capital asset, not traded in the local stock exchange;

2. Every withholding agent/buyer/seller on the sale, transfer or exchange of real property classified as capital asset. The “sale”
includes pacto de retro sale and other forms of conditional sale; and

3. Every withholding agent/buyer/seller on the sale, transfer or exchange of real property other than capital asset.

4. Every natural or juridical person, resident or non-resident, for donation of real properties.

Whenever one party to the taxable document enjoys exemption from the tax herein imposed, the other party thereto who is not
exempt shall be the one directly liable for the tax.

When and Where to File and Pay

The return shall be filed and the tax paid within five (5) days after the close of the month when the taxable document was made,
signed, issued, accepted or transferred.
The return shall be filed with and the tax paid to the Authorized Agent Bank (AAB) within the territorial jurisdiction of Revenue
District Office (RDO) where the seller/transferor/donor is required to be registered or where the property is located in case of
sale of real property.

When the return is filed with an AAB, taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank teller shall
machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall stamp mark the word
“Received” on the return and also machine validate the return as proof of filing the return and payment of the tax by the taxpayer,
respectively.

The machine validation shall reflect the date of payment, amount paid and transactions code, the name of the bank, branch code,
teller’s code and teller’s initial. Bank debit memo number and date should be indicated in the return for taxpayers paying under the
bank debit system.

Payments may also be made thru the e-payment channels of AABs or online facility, credit/debit/prepaid cards, and mobile
payments.

For transactions covered by one (1) Deed of Sale/Exchange/Donation involving one (1) to three (3) properties, the taxpayer can avail
of the fast lane pursuant to Revenue Memorandum Circular (RMC) No. 43-2018, as amended by RMC No. 107-2018.

Payments amounting to twenty thousand pesos (P 20,000.00) and below shall be paid in cash while payments above twenty
thousand pesos (P 20,000.00) shall be made through Manager’s Check or Cashier’s Check to the Revenue Collection Officer of the
RDO concerned.

Deadlines

The Documentary Stamp Tax return (BIR Form 2000) shall be filed in triplicate (two copies for the BIR and one copy for the taxpayer)
within five (5) days after the close of the month when the taxable document was made signed, issued, accepted or transferred; upon
remittance by Collection Agents of collection from sale of loose stamps. The Documentary Stamp Tax shall be paid upon filing of the
return.

ONETT taxpayers required to use eBIR Forms

(Revenue Regulations No. 9- 2016, December 8, 2016)

This Tax Alert is issued to inform all concerned on the amended list of taxpayers required to use eBIR forms.

The following One-Time Transaction (ONETT) taxpayers who are not eFPS registered are required to use eBIR Forms:
a. Taxpayers who are classified as real estate dealers/developers;
b. Taxpayers who are considered as habitually engaged in the sale of real property; and
c. Regular taxpayers already covered by eBlRForms.

Thus, ONETT taxpayers who are filing the following are not required to use eBlR Forms:

 BIR Form 1706 - Capital gains tax return for onerous transfer of real property classified as capital asset
 BIR Form 1707 - Capital gains tax return for onerous transfer of shares of stock not traded through the local stock exchange
 BIR Form 1800 - Donor's tax return
 BIR Form 1801 - Estate tax return
 BIR Form 2000-OT - DST for one-time transaction (under BIR Form 1706 only - onerous transfer of real property classified
as capital asset)