NEED TO DISPOSE OF YOUR PLDT SHARES OF STOCK?
By Emerson P. Redor, CPA
For those of us who had PLDT telephone lines installed, we had been required before to acquire PLDT preferred shares of stock with par value of Php3,500 or in lesser amounts as a requirement for line installation. I do not know if this is still a prerequisite at present but if you have this kind of asset/investment and would like to transfer this to your kids or sell to a third party, be ready to invest (or waste?) your precious time in accomplishing the following requirements for this transfer transaction:
1. BIR requirements:
- 3 copies of notarized deed of sale or assignment; TIN of seller/assignor and buyer/assignee must be furnished.
- Xeroxed copy of stock certificate/s
- Proof of acquisition cost from PLDT (Official Receipt, validated billing payments)
- 3 copies of duly accomplished Capital Gains Tax Return (BIR Form 1707 ) and,
- 3 copies of duly accomplished Documentary Stamp Tax Declaration/Return (BIR Form 2000-OT).
Once you have gathered all these documents, you are now ready to go to the BIR office where you usually file your income tax return. Have your documentary stamps and capital gains tax assessed at the One Time Transactions Desk. If you have 350 shares and sell/transfer only at cost, you are exempt from the capital gains tax; however, you will be asked to pay Php15 in documentary stamps and Php115 in certification fee.
Once payments are done, the BIR will issue you a Certification Authorizing Registration and a Tax Clearance Certificate which will be ready for pick-up around one month after or even longer . Once you have this, you are now ready to move to the next level.
2. Stock and Transfer Agent's (RCBC) requirements:
(The PLDT Stock and Transfer Agent's Office is located at 9/f RCBC Main Office in Ayala Avenue, Makati City)
- BIR Certification/Clearance Authorizing Transfer and notarized deed of sale or assignment
- Original stock certificate
- Valid IDs of seller/assignor; in case seller/assignor is a corporation or a partnership, be ready with your SEC registration certificate and articles of organization (original and xeroxed) and notarized Corporate/Partnership Secretary’s certificate authorizing its representative and the disposal/transfer of the shares of stock.
- Transfer instruction letter
- New signature cards of buyer/assignee and seller/assignor
Once these documents are submitted, you will have to pay Php120 as transfer fee. After payment, the new stock certificate is now ready for transfer processing. Waiting time is about ten days.
Always remember this: Whether you own a million shares or only a share of stock, you will still go through the same tough requirements. Total time you will spend will depend on how lucky you will be at the BIR and/or at RCBC. If you think it's not worth all the trouble and will just waste your time, go ahead, give up and just charge your small investment as part of your expenses/losses.