Section 17Sec./Art. 17

Section 127 of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:

"Section 127. Tax on Sale or Exchange of Shares of Stock Listed and Traded through a Local or Foreign Stock Exchange. -

(A) Tax on Sale or Exchange of Shares of Stock Listed and Traded through a Local Stock Exchange. - There shall be levied, assessed and collected on every sale, exchange, or other disposition of shares of stock and other securities listed and traded through a local stock exchange, other than the sale by a dealer in securities, in lieu of capital gain tax, a tax at the rate of one-tenths of one percent (1/10 of 1%) of the gross selling price or gross value in money of the shares of stock sold, exchanged, or otherwise disposed which shall be paid by the seller or transferor.

Any gain realized from the sale, exchange, or disposition of listed shares of stock by a dealer in securities licensed by the appropriate govenrment regulatory agencies to buy and sell securities, for the individual's own account in the ordinary course of business, shall be considered ordinary income.

(B) Tax on Sale or Exchange of Shares of Stock Listed and Traded Through a Foreign Stock Exchange. - There shall be levied, assessed, and collected on every sale, exchange, or other disposition of shares of stock of a domestic corporation listed and traded through a foreign stock exchange, other than the sale by a dealer in securities, in lieu of capital gains tax, a tax at the rate of one-tenths of one percent (1/10 of 1%) of the gross selling price or gross value in money of the shares of stock sold, exchanged or otherwise disposed which shall be paid by the seller or transferor.

(C) Return on Sale of Shares of Stock and Other Securities Listed and Traded in a Local or Foreign Stock Exchange. - It shall be the duty of every stock who effected the sale subject to the tax imposed herein to collect the tax and remit the same to the Bureau of Internal Revenue within five (5) banking days from the date of collection thereof and to submit on Mondays of each week to the secretary of the stock exchange, of which the taxpayer is a member, a true and complete return which shall contain a declaration of all the transactions effected through the taxpayer during the preceding week and of taxes collected by the said taxpayer and turned over to the Bureau of Internal Revenue: Provided, That for return on sales of shares of stock of a domestic corporation listed and traded in both local and foreign stock exchanges, the collection and remittance of the above tax shall be in accordance with the rules promulgated by the Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue: Provided, further, That the remittance of the said tax shall be made within a period not exceeding ten (10) banking days.

(D) Common Provisions. - x x x."