Taxpayers recently received some good news on how capital gains tax on the sale of unlisted shares of stocks is now calculated. This came in the form of the Bureau of Internal Revenue’s (BIR) issuance of Revenue Regulations (RR) 20-2020, which revised the valuation rules set by RR 6-2013. However, unlike in the valuation of real property, the Tax Code does not prescribe how the FMV of unlisted shares of stock is determined. This gave the CIR the power to determine how to value shares of stock, especially those not listed on any stock exchange. But certainly, this opens up the possibility that the BV per AFS may not be considered the only proper benchmark in determining the FMV of unlisted shares.

Source: Manila Times August 26, 2020 16:18 UTC