BIR Form 1707 covers the onerous transfer of capital-asset shares of a domestic corporation that are not traded through the local stock exchange. The BIR states that it is filed and paid within 30 days after the disposition. This guide explains the form's purpose, who should use it, what information is normally required, and how to verify the current BIR version before filing.
This page is an educational filing guide, not a substitute for the current form, BIR instructions, or professional advice. Tax treatment can depend on the taxpayer, transaction, tax period, and current BIR issuances.
Purpose and legal context
The BIR identifies Form 1707 as the Capital Gains Tax Return for an onerous transfer of shares of stock not traded through the local stock exchange. It applies to capital-asset shares and is not a general form for every securities transaction.
The transaction may involve an individual or juridical person and may be resident or non-resident. Confirm whether the shares are capital assets and whether the transaction is traded through the local stock exchange before selecting the form.
Who should use or receive this form
The person making the covered disposition is responsible for the return. The buyer/transferee may have withholding and document responsibilities under the current BIR instructions.
When to file, issue, or complete it
The BIR instructions state that filing and payment are due within 30 days after each sale, barter, exchange, or other disposition. Installment transactions can require filing after the first down payment and each later installment.
How to complete the main fields
- Enter seller, buyer, TIN, address, and transaction information.
- List the shares and issuing domestic corporation.
- Compute selling price, acquisition cost, allowable expenses, and net capital gain using the current instructions.
- Complete the tax, payment, signature, and schedules sections.
- Submit the return and documentary requirements to the responsible channel.
Common errors to avoid
- Using Form 1707 for shares traded through the local stock exchange.
- Failing to document acquisition cost or selling expenses.
- Omitting stock certificate or corporation details.
- Missing the 30-day deadline after the disposition or installment receipt.
What to keep with your records
Keep the deed or transfer document, stock certificate, acquisition-cost evidence, proof of expenses, corporate approvals, payment proof, and validated return.
Penalties and verification
Late filing or payment may result in surcharge, interest, and compromise penalties. The current BIR instructions should control the computation.
Related BIR forms
Form 1707-A is the annual capital gains tax return for covered stock transactions. Form 1706 is for covered real-property transfers, not shares.