ANNEX “A-1” MANDATORY ACCOUNTING ENTRIES IN THE BOOKS OF THE TRANSFEROR’S AND ‘TRANSFEREE IN TRANSFERS OF REAL PROPERTIES IN EXCHANGE FOR SHARES. ‘Transferor’s Book (The entry/ies shall be per . careers) individual transferor, as may be applicable) Ge | Journal Eni | invesinentin (rasfere'smame) xxx Land & improvement ae toRecordihe | PPE-Land& Improvement wean Capa Stok an Tox Free Gainon Proper for Shae Swap eect Adon! Paidn Capital went Exchange To record the tf exchange fel properties | To ecrd the tase exchange ofl properyies of of (name wansivr) wih agreat armarkt | (name of tansferr®) with gargs fi mare ale value of P in exchange for (type and no. of | of P in exchange for (type and no. of share) of thar) of (one of transferee) wih par value of | (rae of Fansferc) with pr value of Peper Pe ershre Sore | atance Blanes | lvesmet inde (ype andro. of shar) With | gga popees wanes aque tough Deed of value of P_ jin (name of transferee) resulting Ey — ng | echange dated The foal acquston from the taxciree exchange of real propertylies | © = dad rer apa from he atc exchange of real ropes |e coso (me fans) othe el a property/ies amounts to (Fair Market Value [FMV] at the total cost of (substituted basis) and which have the ti ff exchange). The real properties . fir market value as of the date of exchange | NS te of exchange) The real properties were amounting to P_ er y ° —_— Proforma Cash or Accounts Receivables XXX.XX ‘Cash or Accounts Receivables XXX.XX Ents Investment in Transfers) x DPE-Land& Improvement nex Record Gain on Sale of Investment nOKKK Gain on Sale of Propertylies* xxx xx Subsequent Sale/Transfer | To record subsequent sale / transfer of investment | To record subsequent saleitransfer of propertylies scouted tr wx fe exchange acquted tra tax ee exchange Curent voxsx | Curent eee "ax Payable oe Tax Pale ee Provision for Tax as follows: Provision for Tax as follows: Tax Type | Tax Rate | Multiplyby | Amount Tax Type Tax Rate | Multiply by | Amount CGT, oF % FMV* ofthe | xxxx | TS%to | FMV"? of | Seas mews (= | |, [wom ee [PA] a » [womans PT | kas | Cite | RE | pty a” | gate | “ie [| cor | eect | fa | tsar ator ot ae [BUREAU OF INTERNAL REVENUE PTERWIT REVENUE [ate RAs } FAS 04 pune RECORDS MG! ay15% for | subsequent id every | le every 1,000 FS | 0 | a} ost | Pa a wo tose so part | tercor 7 Beso a vAT [12% me [| vata | | Crews Payable wow >| Sa | ae — Sain on sale of properties is subject to Nomal Cor fam Corporate Income Tax (NCTT) a (int of tora | ts | anaicol, | mas | | ormay atthe time of tacfe exchange refers to Stock the selling price, zonal value or the value reflected pede | inthe ox declraton, whichever highest Total Tax Payable 7 ‘FMV at the time of tax-free exchange refers to zonal value or the value reflected in the tax declaration, whichever is higher. ** Computation of Gain Realized on Subsequent Sale of Investment: Selling Price NXXAX, Less: Cost (substituted basis)*** —xxx.xx Net Capital Gain ‘on sale of unlisted shares NL KK ***Per RMO No. 17-2016, the substituted basis of the stock or securities received by the transferor on. a tax-free exchange shall be as follows: (1) The original basis of the property, stock or securities to be transferred; (2) Less: (a) money received, if any, and (b) the fair market value of the other property received, if any; (3)Plus: (a) the amount treated as, dividend of the shareholder, if any, and (b) the amount of any gain that was recognized on the exchange, if any. BUREAU OF INTERNAL REVENUE NF ITTV. /\ \| FEB 04 2022 RECORDS MGI. DIVISION.