Ever had BIR tell you the value of shares you are transferring is so much higher than you thought?
BIR Revenue Regulation No. 20-2020 re: “Rules on Determining Fair Market Value of Shares of Stock” aims to help ease the confusion when paying taxes relative to transactions dealing with shares (not traded through the local stock exchange) by specifying the formulas to be used depending on the nature of the shares.
Get the most out of that business transaction! Talk to your accountant to understand the formulas provided by BIR, and reach out to your lawyer how best to deal with those shares of stock following the new rules effective by Sept 3, 2020. Good luck!
DISCLAIMER: This post is meant for informational purposes only, and is not intended as a substitute for full legal advice. We therefore take no responsibility for any actions taken or not taken on the basis thereof.