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1707-A Annual Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange

This BIR return is filed by every natural or juridical person, resident or non-resident, who is not exempt under existing laws for sale, barter, exchange or other disposition of shares of stock in a domestic corporation, classified as capital assets, not traded through the local stock exchange.

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DLN:
BIR Form No.

Capital Gains
Tax Return

Republika ng Pilipinas
Kagawaran ng Pananalapi
Kawanihan ng Rentas Internas

1707
July, 1999 (

For Onerous Transfer of Shares of Stock Not
Traded Through the Local Stock Exchange

ENCS )

Fill in all applicable spaces. Mark all appropriate boxes with an “X”.
1

Date of Transaction

2 Amended Return?

( MM / DD / YYYY )

Yes

Part I
5 TIN
Seller
Seller's Name
9
11

3 No. of Sheets Attached
No

4 ATC
Code

Background Information
6 RDO
7 TIN
Code
Buyer
10 Buyer's Name

Registered Address

II

0 3 0

IC 1 1 0

Individual
Corporation

8 RDO
Code

12 Registered Address
13 Zip Code

14 Zip Code

15

Are you availing of tax relief under an International Tax Treaty or Special Law?
Yes
No
Description of Transaction
16
Cash Sale
Installment Sale
Foreclosure Sale
Details of Installment Sale:
17
17A Selling Price/Fair Market Value

If yes, specify
Others

(specify)

17B Cost and Expenses
17C Mortgage Assumed
17D No. of installments
17E Amount of Installment for this Payment Period
17F Date of Collection of Installment for this Payment Period (MM/DD/YYYY)
17G Total Collection (Downpayment and Installments) during the Year of Sale
PART II
Compu tation of Tax
18

18

Taxable Base - For Cash Sale/ Foreclosure Sale (Schedule 1)

19

Less: Cost and Other Allowable Expenses (Schedule 2)

19
20

20

Net Capital Gain/(Loss)

21
22

Tax Due on the Entire Transaction (5% on the first 100,000 ; 10% over 100,000)(Cash Sale/Foreclosure Sale); or
Tax Due for this Payment Period
Computation of the Tax Due (If tax is payable under the installment method of computation)

21
22

23

Less: Tax Paid in Return Previously Filed, if this is an Amended Return

23

24

24
25

Tax Payable/(Overpayment)(Item 21 or 22 less Item 23)
Add: Penalties
Surcharge
Interest
25A

26

25B

Compromise
25D

25C

Total Amount Payable/(Overpayment) (Sum of Items 24 & 25D)

Schedule 1

26

Description of Shares of Stock (attach additional sheets, if necessary)
Name of Corporate Stock

Stock Certificate No.

Taxable Base
Selling Price or FMV whichever is higher

No. of Shares

27 Total (To Item 18)
I declare, under the penalties of perjury, that this return has been made in good faith, verified by me, and to the best of my knowledge and belief,
is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof.
28
Part III
Particulars
30 Cash/Bank
Debit Memo
31 Check 31A
32 Tax Debit
Memo
33 Others 33A

29
Taxpayer/Authorized Agent Signature over Printed Name
D e t a i l s of P a y m e n t
Drawee Bank/
Date
Agency
Number
MM
DD
YYYY

Title/Position of Signatory
Amount
30

31B

31C

31D

32A

32B

32C

33B

33C

33D

Machine Validation/Revenue Official Receipt Details (If not filed with the bank)

Stamp of Receiving
Office and Date of
Receipt

BIR FORM 1707 (ENCS)-PAGE 2
Schedule 2

34

Schedule of Cost and Other Allowable Expenses
Particulars

Amount

Total (To Item 19)
BIR Form 1707 - Capital Gains Tax Return
(For Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange)
Guidelines and Instructions
Who shall file
This return 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.

barter, exchange or other disposition of shares of stocks in a
domestic corporation, classified as capital assets, not traded
through the local stock exchange:
Not over P100,000
On any amount in excess of P100,000

5%
10%

Penalties
The term “Capital Asset” shall mean property held by the
taxpayer (whether or not connected with his trade or business),
but does not include stock in trade of the taxpayer or other
property of a kind which would properly be included in the
inventory of the taxpayer if on hand at the close of the taxable
year, or property held primarily for sale to customers in the
ordinary course of trade or business, or property used in the
trade or business of a character which is subject to the
allowance for depreciation, or real property used in trade or
business.

1.

When and Where to File
The return shall be filed within thirty (30) days after
each sale, barter, exchange or other disposition of shares of stock
not traded through the local stock exchange.
2.
In case of installment sale where the taxpayer is legally
allowed to pay the tax by installment under certain conditions
and requirements, the return shall be filed within thirty (30)
days following the receipt of the first down payment and within
thirty (30) days following each subsequent installment payment.
The return shall be filed by the seller with any
Authorized Agent Bank (AAB) under the jurisdiction of the
Revenue District Office (RDO) where the seller/transferor is
required to register. In places where there are no Authorized
Agent Banks (AABs), the return shall be filed with the Revenue
Collection Officer or Duly Authorized City or Municipal
Treasurer
of the Revenue District Office where the
seller/transferor is required to register.
When and Where to Pay
Upon filing the return, the total amount payable shall be
paid to the Authorized Agent Bank (AAB) where the return is
filed. In places where there are no AABs, payments shall be
made directly to the Revenue Collection Officer or duly
Authorized City or Municipal Treasurer who shall issue
Revenue Official Receipt (BIR Form No. 2524) therefor.
Where the return is filed with an AAB, the lower portion
of the return must be properly machine-validated and stamped
by the Authorized Agent Bank to serve as the receipt of
payment. The machine validation shall reflect the date of
payment, amount paid and transaction code, and the stamp mark
shall show the name of the bank, branch code, teller’s name and
teller’s initial. The AAB shall also issue an official receipt or
bank debit advice or credit document, whichever is applicable,
as additional proof of payment.

Rate and Basis of Tax
A final tax at the rates prescribed below shall be
computed based on the net capital gains realized from the sale,

3.

4.

There shall be imposed and collected as part of the tax:
A surcharge of twenty five percent (25%) for each of the
following violations:
a.
Failure to file any return and pay the amount of tax
or installment due on or before the due date;
b.
Unless otherwise authorized by the Commissioner,
filing a return with a person or office other than
those with whom it is required to be filed;
c.
Failure to pay the full or part of the amount of tax
shown on the return, or the full amount of tax due
for which no return is required to be filed on or
before the due date;
d.
Failure to pay the deficiency tax within the time
prescribed for its payment in the notice of
assessment.
A surcharge of fifty percent (50%) of the tax or of the
deficiency tax, in case any payment has been made on the
basis of such return before the discovery of the falsity or
fraud, for each of the following violations:
a.
Willful neglect to file the return within the period
prescribed by the Code or by rules and regulations;
or
b. In case a false or fraudulent return is willfully made.
Interest at the rate of twenty percent (20%) per annum, or
such higher rate as may be prescribed by rules and
regulations, on any unpaid amount of tax, from the date
prescribed for the payment until the amount is fully paid.
Compromise penalty.

Attachments Required
1.
2.

3.
4.
5.

Copy of the Notarized Deed of Sale or Exchange;
Copy of the Deed of Sale (Acquisition) or proof of
cost/fair market value of the stocks at the time of
acquisition;
Photocopy of proof of the expenses related to sale;
Copy of Audited Financial Statements of issuing
corporation/institution.
Duly approved Tax Debit Memo, if applicable.

The attachments must be submitted upon field or office
audit of the tax case before the Tax Clearance
Certificate/Certificate Authorizing Registration can be released
to the taxpayer.
Note: All background information must be properly filled
up.
§
Box No. 1 refers to the date of transaction of the shares of
stock covered by this return.
§
The last 3 digits of the 12-digit TIN refers to the branch
code.
§ TIN = Taxpayer Identification Number.
§
Onerous Transfer means transfer for value.
ENCS
 
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