(Revenue Regulations No. 23-2020 published on October 02, 2020)
This Tax Alert is issued to inform all concerned on the implementing rules and regulations of the repeal of the tax on Initial Public Offering (IPO) of shares of stocks under the Bayanihan to Recover as One Act (Republic Act No. 11494) or the Bayanihan II.
Section 6 of Bayanihan II repealed Section 127 (B) of the Tax Code, as amended. Hence, every sale, barter, exchange or other disposition of shares of stocks in closely held corporations through IPO shall no longer be subject to tax imposed by said section upon effectivity of the Bayanihan II on September 15, 2020.
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