Documentary Stamp Tax

DOCUMENTARY STAMP TAX Contents Description Tax Forms Documentary Requirements Tax Rates Procedures Dealines Related Revenue Issuances Codal References Frequently Asked Questions

DESCRIPTION Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.

TAX FORM BIR Form 2000 (Documentary Stamp Tax Declaration Return)

DOCUMENTARY REQUIREMENTS 1) Photocopy of document(s) to which the documentary stamp shall be affixed, in case of constructive affixture of Documentary Stamp Tax 2) For metering machine users, a schedule of the details of usage or consumption of documentary stamp 3) Proof of exemption under special law, if applicable 4) Duly approved Tax Debit Memo, if applicable

TAX RATES Tax Code Section 174

175

176

177

178

179

Document Debentures and Certificates of Indebtedness Original Issue of Shares of Stock with par value Original Issue of Shares of Stock without par value Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of Duebills, Certificate of Obligation, or Shares or Certificates of Stock Bonds, Debentures, Certificate of Stock or Indebtedness issued in foreign Countries Certificate of Profits or Interest in Property or Accumulation Bank Checks, Drafts, Certificate of Deposit not bearing interest and other Instruments

Taxable Unit

Tax Due Per Unit

P200.00 or P1.50 fraction thereof

% of Unit .75%

P200.00 or fraction thereof 2.00 P200.00 or fraction thereof 2.00 based on actual consideration

1% 1%

Taxable Base Face value of Document Par value of shares of stocks actual consideration for the issuance of shares of stocks

P200.00 or 1.50 fraction thereof

.75%

Par value of such duebills, certificate of obligation or stocks

P200.00 or 1.50 fraction thereof

.75%

Par value of such bonds, debentures or Certificate of Stocks

P200.00 or .50 fraction thereof

.25%

Face value of such certificate / memorandum

On each Document

1.50

180

Bonds, Loan Agreements, Promissory Notes, Bills of Exchange, Drafts, Instruments and Securities Issued by the Government or any of its Instrumentalities, Deposit Substitutes P200.00 or Debt Instrument, .30 fraction thereof Certificates of Deposit bearing interest and others not payable on sight or demand (except loan agreement or promissory notes exceeding P250,000.00 for personal use or family use)

181

Bills of Exchange or order drawn in foreign country but payable in the Philippines

P200.00 or .30 fraction thereof

.15%

182

Foreign Bills of P200.00 or Exchange and Letter .30 fraction thereof of Credit

.15%

183

Life Insurance Policies

.25%

184

185

P200.00 or .50 fraction thereof P4.00 premium Policies Of Insurance or fraction .50 upon Property thereof Fidelity Bonds and P4.00 premium other Insurance or fraction .50 Policies thereof

186

Policies of Annuities, P200.00 or Annuity or other 1.50 fraction thereof instruments

186

Pre-Need Plans

187

Indemnity Bonds

188

189 190

P500.00 or .50 fraction thereof P4.00 or .30 fraction thereof

Certificates of Damage or otherwise and Certificate or document issued by any customs officers, marine surveyor, Each Certificate 15.00 notary public and certificate required by law or by rules and regulations of a public office Warehouse Receipts (except if value does Each Receipt 15.00 not exceed P200.00) Jai-alai, Horse Race P1.00 cost of .10 Tickets, lotto or ticket and Other Authorized Additional P0.10 Number Games on every P1.00 or fraction thereof if cost of ticket exceeds

.15%

Face value of the instrument/document

Face value of such bill of exchange or order or the equivalent of such value, if expressed in foreign currency Face value of such bill of exchange or order or the equivalent of such value, if expressed in foreign currency Amount Insured by the Policy

12.5%

Premium charged

12.5%

Premium charged

75%

.10%

Capital of annuity, or if unknown 33 1/3 times the annual income Value or amount of the Plan

7.5%

Premium charged

10%

Cost of the ticket

P1.00 Bills of Lading or Receipts 191

193

(except charter party) Powers of Attorney

Each Proxy

15.00

Each Document 5.00 First 2,000 For every P1,000 or fractional part 3.00 thereof in excess of the 1.00 first P2,000 for each year of the term of the contract or agreement

194

Lease and other Hiring agreements of memorandum or contract for hire, use or rent of any land or tenements or portions thereof

195

First 5,000 Mortgages Pledges of On each P5,000 20.00 lands, estate, or or fractional property and Deeds 10.00 part thereof in of Trust excess of 5,000

196

Deed of Sale, instrument or writing and Conveyances of Real Property (except grants, patents or original certificate of the government)

1.5% 1%

.4%

Amount Secured

.2%

Amount Secured

First 1,000 For each additional P1,000 or fractional part thereof in excess of P1,000

15.00

1.5%

15.00

1.5%

Consideration or Fair Market Value, whichever is higher (if government is a party, basis shall be the consideration)

1,000 tons and P500.00 for the first 6 below months PlusP50 each month or fraction thereof in excess of 6 months

197

P1,000 for the first 6 months 1,001 to 10,000 Plus P100 each month or Charter parties and tons fraction thereof in excess of Similar Instruments 6 months

Over 10,000 tons

Tonnage and duration of the contract

P1,500 for the first 6 months Plus P150 each month or fraction thereof in excess of 6 months

PROCEDURES File BIR Form No. 2000 in triplicate (two copies for the BIR and one copy for the taxpayer) with the Authorized Agent Bank (AAB) in the Revenue District where the seller or transferor is registered, for shares of stocks or where the property is located, for real property. In places where there are no AAB, the return will be filed directly with the Revenue Collection Officer or Authorized City or Municipal Treasurer. Submit all documentary requirements and proof of payment to the Revenue District Office having jurisdiction over the place of residence of the seller.

DEADLINES

The Documentary Stamp Tax return (BIR Form 2000) shall be filed in triplicate (two copies for the BIR and one copy for the taxpayer) within five (5) days after the close of the month when the taxable document was made signed, issued, accepted or transferred; when reloading a metering machine becomes necessary; or upon remittance by Collection Agents of collection from sale of loose stamps. The Documentary Stamp Tax shall be paid upon filing of the return.

RELATED REVENUE ISSUANCES RR No. 6-2001, RMO No. 8-98, RMO No. 15-2001

CODAL REFERENCE Sec. 173 to Sec. 201 of the National Internal Revenue Code

FREQUENTLY ASKED QUESTIONS 1) Who are required to file Documentary Stamp Tax Declaration Return? a) In case of constructive affixture of documentary stamps, by the persons making, signing, issuing, accepting or transferring documents, instruments, loan agreements and papers, acceptances, assignments, sales and conveyances of the obligation, right or property incident thereto wherever the document is made, signed, issued, accepted or transferred when the obligation or right arises from Philippine sources or the property is situated in the Philippines at the same time such act is done or transaction had; b) By metering machine user who imprints the Documentary Stamp Tax due on the taxable documents; and c) By Revenue Collection Agent, for remittance of sold loose documentary stamps. Note: Wherever one party to the taxable document enjoys exemption from the tax imposed, the other party who is not exempt will be the one directly liable to file Documentary Stamp Tax Declaration and pay the applicable stamp tax.

2) Where is the Documentary Stamp Tax Declaration Return filed? In the Authorized Agent Bank (AAB) within the territorial jurisdiction of the RDO which has jurisdiction over the residence or principal place of business of the taxpayer or where the property is located in case of sale of real property or where the Collection Agent is assigned. In places where there is no Authorized Agent Bank, the return will be filed with the Revenue Collection Officer or duly authorized City or Municipal Treasurer where the taxpayer's residence or principal place of business is located or where the property is located in case of sale of real property or where the Collection Agent is assigned.

3) What are the documents/papers not subject to Documentary Stamp Tax? · Policies of insurance or annuities made or granted by a fraternal or beneficiary society, order, association or cooperative company, operated on the lodge system or local cooperation plan and organized and conducted solely by the members thereof for the exclusive benefit of each member and not for profit · Certificates of oaths administered by any government official in his official capacity or acknowledgement by any government official in performance of his official duty · Written appearance in any court by any government official in his official capacity · Certificates of the administration of oaths to any person as to the authenticity of any paper required to be filed in court by any person or party thereto, whether the proceedings be civil or criminal · Papers and documents filed in court by or for the national, provincial, city or municipal governments · Affidavits of poor persons for the purpose of proving poverty · Statements and other compulsory information required of persons or corporations by the rules and regulations of the national, provincial, city or municipal government exclusively for statistical purposes and which are wholly for the use of the Bureau or office in which they are filed, and not at the instance or for the use or benefit of the person filing them · Certified copies and other certificates placed upon documents, instruments and papers for the national, provincial, city or municipal governments made at the instance and for the sole use of some other branch of the national, provincial, city or municipal governments · Certificates of the assessed value of lands, not exceeding P200 in value assessed, furnished by the provincial, city or municipal Treasurer to applicants for registration of title to land

4) What are the implications of failure to stamp taxable documents? · The untaxed document will not be recorded, nor will it or any copy thereof or any record of transfer of the same be admitted or used in evidence in court until the requisite stamp or stamps have been affixed thereto and cancelled · No notary public or other officer authorized to administer oaths will add his jurat or acknowledgment to any document subject to Documentary Stamp Tax unless the proper documentary stamps are affixed thereto and cancelled.