BIR Form No. 2552 - Percentage Tax Return (For Transaction Involving Shares of Stock Listed and Trade
Through The Local Stock Exchange Or Through Initial and/or Secondary Public Offering)
Guidelines and Instructions
 

Who Shall File (Including Tax Rate and Tax Base)

This return shall be filed in triplicate by the following taxpayers:

1. Every stock broker, who effected a sale, barter, exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange (LSE) other than the sale by a dealer in securities, subject to a tax rate of one-half of one percent (1/2 of 1%) of the gross selling price or gross value in money of the stock sold, bartered or exchanged or otherwise disposed, which tax shall be shouldered by the
seller/transferor.

2. A corporate issuer, engaged in the sale, exchange or other disposition through Initial Public Offering (IPO) of shares of stock in closely-held corporations at the rates provided hereunder based on the gross selling price or gross value in money of the shares of stock sold, bartered, exchanged or otherwise disposed in accordance with the proportion of shares of stock sold, bartered, exchanged or otherwise disposed to the total outstanding shares of stock after the listing in the local stock exchange:
Up to 25% 4%
Over 25% but not over 33 1/3% 2%
Over 33 1/3% 1%

3. A stock broker who effected a sale, exchange or other disposition through secondary public offering of shares of stock in closely-held corporations at the rates provided hereunder based on the gross selling price or gross value in money of the shares of stock sold, bartered, exchanged or otherwise disposed in accordance with the proportion of shares of stock sold, bartered, exchanged or otherwise disposed to the total outstanding shares of stock after the listing in the local stock exchange:
Up to 25% 4%
Over 25% but not over 33 1/3% 2%
Over 33 1/3% 1%

When and Where to File

     This return shall be filed as follows:

a) For tax on sale of shares of stock listed and traded through the
Local Stock Exchange (LSE), within five (5) banking days from
date of collection;

b) For shares of stocks sold or exchanged through primary public
offering, within thirty (30) days from date of listing of shares of
stock in the LSE; and

c) For tax on shares of stock sold or exchanged through secondary
public offering, within five (5) banking days from date of
collection.

The return shall be filed with any Authorized Agent Bank (AAB)
located within the jurisdiction of the Revenue District Office (RDO) where the Local Stock Exchange is located.

Note: A stockbroker or corporate issuer, in addition to BIR Form 2552, is required to submit on Monday of each week to the Secretary of the Stock Exchange, of which he is a member, a true and complete
return which shall contain a declaration of all the transactions effected through him during the preceding week and of taxes collected by him and turned over to the Bureau of Internal Revenue.

When and Where to Pay

Upon filing this return, the total amount payable shall be paid to the
Authorized Agent Bank (AAB) where the return is filed, which bank is
situated within the jurisdiction of the Revenue District Office (RDO) where the Local Stock Exchange is located. 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 stamped mark shall show the name of the bank, branch code, teller's code 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.

 

Definition of Terms

Closely Held Corporation means any corporation at least fifty percent (50%) in value of the outstanding capital stock or at least fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote is owned directly or indirectly by or for not more than twenty (20) individuals.

Penalties

There shall be imposed and collected as part of the tax:
1. 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.


2. 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.


3. 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.


4. Compromise penalty.


Attachments Required

1. Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if
applicable;

2. Proof of exemption for transaction not subject to tax, if applicable;

3. Duly approved Tax Debit Memo, if applicable;

4. For amended return, proof of the payment and the return previously
filed.

Note: All background information must be properly filled up.
- The last 3 digits of the 12-digit TIN refers to the branch code.
- TIN = Taxpayer Identification Number

ENCS