RMC No. 72-2026 Digest

RMC No. 72-2026 clarifies that moving the legal title of proprietary club shares from one nominee-trustee to another is not subject to Capital Gains Tax, Documentary Stamp Tax, or Donor's Tax where there is no transfer of beneficial ownership and the trustor-corporation remains the beneficial owner. The BIR dispenses with the prior confirmatory ruling requirement for such transfers, subject to strict conditions (corporate beneficial ownership, a Declaration of Trust or Trust Agreement, the share recorded as a corporate asset, and no consideration), post-audit verification, and substance-over-form/anti-avoidance principles. Taxpayers may apply directly to the RDO's ONETT Section for an electronic Certificate Authorizing Registration (eCAR) with the prescribed documents, and pending confirmatory ruling applications will no longer be acted upon.