Direct transfers (DTs) are transactions where a registered PDR holder directly transfers his or her PDRs to another known entity. At times, DTs result from "over-the-counter" buying and selling of PDRs. For the Company or transfer agent to register DTs, the parties should submit/ accomplish the following:
- Duly endorsed PDR certificate(s);
- Deed of Sale or Assignment;
- Proof of payment of the capital gains tax (CGT) which is normally borne by the seller;
- Proof of payment of documentary stamps tax (DST) which is normally borne by the buyer;
- Certification from the BIR that the transfer of PDRs may be effected;
- Specimen signature cards of the PDR holder (include Articles of Incorporation, By-laws and board resolution on the corporation's authorized signatories if the PDR holder is a corporation); and
- Payment of transfer fees to the transfer agent.
Alternatively, direct transfers may be conveniently coursed through licensed stockbrokers who shall "cross" or reflect the transaction in the PSE trading floor. In such instance, the stockbroker arranges for the remittance of taxes and transfer fees. In lieu of the CGT, PDR holders are charged the sales transaction tax equivalent to 1/2 of 1% of the market value of the PDRs. In addition, stock brokers normally charge a commission for DTs.
Transfer of PDRs Involving Minors
Transfer of PDRs owned by minors (persons below 18 years old) should be supported by a court order authorizing the transfer. A guardian cannot validly dispose of the property of a minor under guardianship without Court approval. This requirement also applies to PDRs registered "In Trust For" minors as beneficiaries.
Transfer of Shares of Deceased Persons
Transfers involving the PDRs of a deceased PDR holder may be effected either judicially or extra-judicially.
A. Judicially. The heirs should submit/ accomplish the following:
- The Order of Partition approved by the Court, indicating the manner of division of the Estate among the surviving heirs;
- PDR certificates of the decedent; and
- Payment of Transfer fees.
B. Extra-judicially. The heirs should submit/accomplish the following:
- Deed of Extra-judicial settlement;
- Death certificate of PDR holder;
- Certification from the BIR on the full payment, or exemption of the estate tax. Said tax is imposed on the right to transfer property by death levied on the decedent's estate;
- Affidavit of publication evidencing that the extra-judicial settlement of the estate was published in a newspaper of general circulation;
- PDR certificate(s) of the decedent,
- Payment of transfer fees; and
Two-year heir's bond submitted to the Register of Deeds, should the heirs wish for the immediate transfer of the PDRs. Otherwise, the transfer will only be made two (2) years from submission of the aforementioned requirements.
The heirs should also submit any un-encashed cash distribution check(s) issued in the name of the deceased PDR holder for replacement in the same manner as the PDRs were partitioned.