The Bureau of Internal Revenue (BIR) said it is streamlining the process for nominee transfers of proprietary club shares, according to a statement on Wednesday. The BIR issued Revenue Memorandum Circular 72-2026 to clarify the tax treatment of such transfers. BusinessWorld reported the development.
The circular specifically addresses nominee transfers that do not involve any change in beneficial ownership. This means that when a club share is transferred from one nominee to another but the underlying owner remains the same, the transaction will not be treated as a sale or exchange for tax purposes, simplifying compliance.
The clarification is expected to reduce administrative burdens for club members and corporations handling proprietary shares, which are commonly associated with membership in golf and country clubs. The BIR circular takes effect immediately.