Re: Tax implication on sale of shares of stocks

Under the NIRC as amended by the TRAIN LAW, the sale of shares of stock
not sold in the stock exchange is subject to capital gains tax.

Rates of certain passive income of Individual Citizen and Individual

Resident Alien as amended by the Train Law states that:
(C)Capital Gains from Shares of Stock not Traded in the Stock Exchange.
– The provisions of Section 39(B) notwithstanding, a final tax at the rate
of fifteen percent (15%) is hereby imposed upon the net capital gains
realized during the taxable year from the sale, barter, exchange or other
disposition of shares of stock in a domestic corporation, except shares
sold, or disposed of through the stock exchange.1

The rate is the same for domestic corporations

Capital Gains from Shares of Stock not Traded in the Stock Exchange. – A
final tax at the rate of fifteen percent (15%) shall be imposed on the net
capital gains realized during the taxable year from the sale, exchange or
other disposition of shares of stock in a domestic corporation, except
shares sold or disposed of through the stock exchange2

1
Sec.5 TRAIN LAW
2
Sec.7 TRAIN LAW