Capital Gains Tax Flashcards
What sale of shares of stock is subject to CGT?
Sale of an unlisted domestic stock by a non-dealer of securities
Requirements:
1. Stock of a domestic corporation;
2. Stock should be capital asset (owned by a non-dealer of securities);
3. Not traded in the local stocks exchange (LSE); and
4. Sale resulted to a gain
How to compute for the CGT on the sale of shares of stock subject to CGT?
SP - Cost = Capital gain * 15% = CGT
What sale of real property is subject to CGT?
Sale of a land and/or building located in the Philippines that is classified as a capital asset
Requirements:
1. The land and/or building must be a capital asset;
2. It must be located in the Philippines; and
3. Regardless of whether the transaction resulted to a gain or loss
How to compute for the CGT on the sale of real property subject to CGT?
Higher between the GSP and FMV * 6% = CGT
FMV is the higher between the Zonal Value (BIR) and Assessed Value (Assessor’s Office)
True or False
The sale of shares of stock of a domestic corporation (classified as capital asset) that is not traded in the local stock exchange is subject to 15% CGT.
TRUE
Provided that the sale resulted to a gain
True or False
The sale of shares of stock of a resident foreign corporation (classified as capital asset) that is not traded in the local stock exchange is subject to 15% CGT.
FALSE
Subject to Regular Income Tax (or Basic Tax)
True or False
The sale of shares of stock of a domestic corporation (classified as capital asset) that is traded in the local stock exchange is not subject to 15% CGT.
TRUE
Exempt from income tax; Subject to Stock Transaction Tax
True or False
The sale of shares of stock of a foreign corporation (classified as capital asset) that is traded in the local stock exchange is subject to 15% CGT.
FALSE
Exempt from income tax; Subject to Stock Transaction Tax
The sale of shares of stock of a domestic corporation (classified as ordinary asset) that is not traded in the local stock exchange is subject to 15% CGT.
FALSE
The sale of a real property (classified as capital asset) located in the Philippines is generally subject to 6% CGT.
TRUE
