44 | P a g e 2010-2015 Taxation Law Bar Examinations A resident Filipino citizen (not a dealer in securities) sold shares of stocks of a domestic…

The question

44 | P a g e 2010-2015 Taxation Law Bar Examinations A resident Filipino citizen (not a dealer in securities) sold shares of stocks of a domestic corporation that are listed and traded in the Philippine Stock Exchange. (2012 Bar Question)

1. A.The sale is exempt from income tax but subject to the ½ of 1% stock transaction tax;
2. B.The sale is subject to income tax computed at the graduated income tax rates of 5% to 32% on net taxable income;
3. C.The sale is subject to the stock transaction tax and income tax;
4. D.The sale is both exempt from the stock transaction tax and income tax.

This question has not been answered yet.