The Bank of the Philippine Islands said Monday the fair market value of treasury stocks it declared as property dividend for shareholders was determined at P105 a share.
BPI said setting the fair market value was important because it was the value used to determine the price at which each of the 406.2 million treasury shares will be crossed at the Philippine Stock Exchange, and in determining the final withholding tax on the property dividend. The cross transaction was undertaken last Friday.
At a tax rate of 10 percent, BPI shareholders who are qualified to get the property dividend will have to collectively pay the Bureau of Internal Revenue of P4.26 billion since the total market value of those treasury shares is P42.65 billion.
Shares of BPI closed Friday, June 16, at P107.
