Stamp Tax

DOCUMENTARY STAMP TAX
DOCUMENTARY STAMP TAX

 Documentary stamp tax (DST) is an excise
tax on the exercise of certain rights
embodied in certain documents. It is either
imposed as a fixed tax or an ad valorem tax
based on the par value or face value of the
document.
 An excise tax, national tax whose purpose
is to raise revenue.
 A tax on transaction effected within the
Philippines. A tax upon documents,
instruments, loan agreements, papers
evidencing acceptances, assignments, sales
and transfer of obligations, rights or
properties, and in respect of the transaction
so had or accomplished. It is levied and
collected whenever the document is made,
signed, issued, accepted, or transferred
when the obligation or right arises from
Philippine sources, or the property situated
in the Philippines.
Nature of documentary Documentary stamp tax is in the nature of an excise tax. It is not imposed upon the
stamp tax business transacted but is an excise upon the privilege, opportunity or facility offered at
exchanges for the transaction of the business.
It is an excise upon the facilities for the transaction of the business separate and apart
from the business itself.
Documentary stamp taxes are levied on the exercise by persons of certain privileges
conferred by law for the creation, revision, or termination of specific legal relationships
through the execution of specific instruments (Antam Pawnshop v. CIR, 2008)
This is a tax imposed on the transaction rather than on the document itself.
DST is in nature of an excise tax levied on the exercise by person of certain privileges
conferred by, law for the creation, revision, or termination of specific legal relationship
through the execution of specific instruments.
It becomes due at the same time the document or instrument evidencing the transaction
is notarized.
Documents subject to DST
DST rates The DST rates shall be applicable on all documents not otherwise
expressly exempted from law, notwithstanding the fact they are in
electronic form.
R.A. 8792, Under R.A. 8792, otherwise known as the Electronic Commerce
otherwise Act, electronic documents are the functional equivalent of a written
known as the document under existing laws, and the issuance thereof is
Electronic therefore tantamount to the issuance of a written document, and
Commerce Act therefore subject to DST.
DST levied DSTs are levied independently of the legal status of the
upon issuance transactions giving rise thereto.
of documents
They must be paid upon the issuance of the instruments, without
regard to whether the contracts which gave rise to them are
rescissible, void, voidable, or unenforceable.
Who is liable? The person making, signing, issuing, accepting or transferring documents. Either of the
contracting party is liable.
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Normally in practice, it is the
benefiting party to the
transaction who pays the
documentary stamp tax but
the parties may agree
between them who will pay
the same. However, if the
agreeing party fail to pay the
documentary stamp tax, the
government may enforce the
tax against the other party.
If one of the contracting

parities enjoys exemption to
documentary stamp tax, the
other party who is not
exempt shall be liable to the
same.
Persons making the DST is a tax on certain transactions. It is imposed against

document or facility the person making, signing, issuing, accepting or
transferring the document or facility evidencing the
aforesaid transaction.
On transaction itself In general, it may be imposed on the transaction itself or
upon the document underlying such act.
May be shared by Any of the parties thereto shall be liable for the full
parties liable to tax amount of the tax due. As between themselves, the
parties may agree on who shall be liable or how they may
share on the cost of the tax.
Paid by one who not Whenever one of the parties to the taxable transaction is
exempt exempt from the DST, the other party who is not exempt
shall be the one directly liable for the tax.
Documentary stamp tax 1. Documentary stamp tax

return declaration – BIR Form 2000
2. Documentary stamp tax

declaration – One-time
transaction BIR Form 2000-OT
Deadline of payment Documentary stamp tax is generally payable within 5 days after the close of the month
when the taxable document was signed, issued, accepted or transferred.
Place of Filling and 1. Authorized agent bank (AAB) within the territorial jurisdiction of the RDO which
Payment jurisdiction over the residence or principal of business of the taxpayer; or
2. If there be no AAB, with the Revenue District Officer, collection agent, or duly
authorized treasurer of the city or municipality in which the taxpayer has his legal
residence or principal place of business.
Mode of payment The documentary stamp tax may be paid by

either:
1. Purchase of documentary stamp and
actual affixture on the document.
2. Imprinting a secured stamp on the
taxable documents through the web-
based Electronic Documentary
Stamp Tax (eDST) System
3. Constructive affixture by filing of a documentary stamp tax return.
Who shall file the

documentary stamp tax
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return? Mode of payment Person liable who file
Loose stamps or actual affixture Revenue collection officer who sold the
stamps
Machine imprinted stamps Imprinting machine user
Constructive affixture The person making, signing, issuing,
accepting or transferring document
Attachment to the 1. Photocopy of the document

documentary stamp tax 2. Proof of payment of the documentary stamp tax
return 3. A schedule showing the details of the usage or consumption of documentary stamps
Effects of non- The failure to pay the documentary stamp tax on documents shall not invalidate the
compliance same.
It will not, however, be accepted for recording in the Registry of Deeds.
It will not also be admissible as evidence in court until the required stamp is affixed
thereto and cancelled.
Notary or other officers authorized to administer oaths shall not affix his jurat or
acknowledgement on documents unless the documentary stamp is affixed thereto and
cancelled.
List of 1. Real properties

documents/transactions a. Deed of sale
subject to tax b. Donation
2. Shares of stocks
a. Original issue of shares
b. Transfers of shares
3. Certificate of profits or interest in property or accumulations
4. Bonds, debentures, certificates of stocks or indebtedness issued to foreign countries
5. Indemnity bonds
6. Bank checks, drafts, certificates of deposits not bearing interest and other instrument
7. Bills of exchange or drafts
8. Acceptance of bills of exchange and others
9. Foreign bills of exchange and letters of credits
10. Debt instruments
11. Insurance
a. Life insurance policies
b. Property insurance
c. Fidelity bonds and other insurance policies
12. Policies of annuities and pre-need plans
13. Certificates
14. Warehouse receipts
15. Bills of lading or receipts
16. Proxies
17. Power of attorney
18. Leases and other hiring agreements
19. Mortgages, pledges and deeds of trusts
20. Charter parties and similar arrangement
21. Assignments and renewals of certain instruments
Effects of failure to stamp taxable documents
Documents not to be recorded An instrument, document or paper which is required by law to be stamped and
which has been signed, issued, accepted or transferred without being duly
stamped, shall not be recorded.
Documents not admitted or An instrument, document or paper or any copy thereof or any record of transfer
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used in evidence in any court of the same which is required by law to be stamped shall not be admitted or used
in evidence in any court until the requisite stamp or stamps arc affixed thereto
and cancelled.
No jurat or acknowledgment No notary public or other office authorized to administer oaths shall add this jurat
shall be added or acknowledgment to any document subject to documentary stamp tax unless
the proper documentary stamps are affixed thereto and cancelled.
Note:
Does the failure to affix or stamp a document or paper affect the validity of the transaction?
No, the failure to affix or stamp a document or paper does not render the transaction or contract invalid. The document
or paper shall not be recorded nor shall any copy be admitted or used in evidence in any court until the requisite stamp
shall have been affixed and cancelled. The failure to affix and cancel the stamp shall prohibit any notary public from
adding his jurat or acknowledgment to any document subject to the documentary stamp tax.
Documents subject to tax
1. Bonds, debentures, and certificate of indebtedness

2. Original issue of shares of stock
3. Sales, agreement to sell, memoranda of sale, deliveries or transfer of due bills, certificates of obligation, or
shares of certificate of stock
4. Bonds, debentures, certification of stock, or indebtedness issued in foreign countries
5. Certificate of profits or interest in property or accumulations
6. Bank checks, drafts, certificates of deposit not bearing interest, and other instruments
7. All bonds, loan agreements, promissory notes, bills of exchange, drafts, instruments and securities issued by the
government or any of its instrumentalities, deposit substitute, debts instrument, certificate of deposits bearing
interest, and others not payable on sight or demand
8. Acceptance of bills of exchange and others
9. Foreign bills of exchange and letters of credit
10. Life insurance policies
11. Policies of insurance upon property
12. Fidelity bonds and other insurance policies
13. Policies of annuities and pre-need plans
14. Indemnity bonds
15. Certificates (certificate of property valuation)
16. Warehouse receipts
17. Jai-alai, horse race tickets, lotto, or other authorized number games
18. Bill of lading or receipts
19. Proxies
20. Powers of attorney
21. Leases and other hiring agreements
22. Mortgages, pledges, and deeds of trust
23. Deed of sale and conveyance of real property
24. Charter parties and similar instruments
25. Assignments and renewals of certain instruments
SEC 199. Documents and papers not subject to Stamp Tax. –
The provisions of Section 173 to the contrary notwithstanding, the following instruments, documents and papers shall be
exempt from the documentary stamp tax.
(a) 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.
(b) Certificates of oaths administered to any government official in his official capacity or of acknowledgment by any
government official in the performance of his official duties, written appearance in any court by any government
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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 the courts 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 governments 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 the 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; and certificated of the assessed value of lands, not exceeding Two
hundred pesos (P200) in value assessed, furnished by the provincial, city or municipal treasurer to applicants of
registration of title to land.
(c) Borrowing and lending of securities executed under the Securities Borrowing and Lending Program of a registered
exchange, or in accordance with regulations prescribed by the appropriate regulatory authority; Provided,
however, that any borrowing or lending of securities agreement as contemplated hereof shall be duly covered by
a master securities borrowing and lending agreement acceptable to the appropriate regulatory authority and
which agreement is duly registered and approved by the Bureau of Internal Revenue. (BIR)
(d) Loan agreements or promissory notes, the aggregate of which does not exceed Two hundred fifty thousand pesos
(P250,000) or any such amount as may be determined by the Secretary of Finance, executed by an individual for
his purchase on instalment for his personal use or that for his family and not for business or resale, barter or hire
of a house, lot, motor vehicle, appliance or furniture: Provided, however, that the amount to be set by the
Secretary of Finance shall be in accordance with a relevant price index but not to exceed ten percent (10%) of
the current amount and shall remain in force at least for three (3) years.
(e) Sale, barter, or exchange of shares of stock listed and traded through the local stock exchange.
(f) Assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or continuance of any
agreement, contract, charter, or any evidence of obligation or indebtedness, if there is no change in the maturity
date or remaining of coverage from that of the original instrument.
(g) Fixed income and other securities traded in the secondary market or through an exchange.
(h) Derivatives: Provided, That for purposes of this exemption, repurchase agreements and reverse repurchase
agreements shall be treated similarly as derivatives.
(i) Interbank or interdepartmental advances within the same legal entity.
(j) All forebearances arising from sales or service contracts including credit card and trade receivables: Provided,
That the exemption be limited to those executed by the seller or service provided.
(k) Bank deposit accounts without a fixed term or maturity.
(l) All contracts, deeds, documents, documents and transactions related to the conduct of business of the Bangko
Sentral ng Pilipinas.
(m) Transfer of property pursuant to Section 40 (C) (2) of the National Internal Revenue Code of 1997, as amended.
(n) Interbank call loans with maturity of not more than seven (7) days to cover deficiency in reverses against deposit
liabilities including those between or among banks and quasi-banks.
Documentary Stamp Tax (DST)

Documents/Transactions Tax Rate
In general
Original issue of shares of stocks P2.00 / P200
Sales, Agreements to Sell, Memoranda of Sales, P1.50 / P200
Deliveries or Transfer of Shares of Certificates of
Stock with par value
In case stock without par value 50% of DST paid on original issue
Bonds, Debentures, Certificates of Stock or Same tax rate on similar instrument
Indebtedness issued in Foreign Countries
Certificates of Profits or Interest in property or P1.00 / P200
accumulation
Bank checks, drafts, certificates of deposit not P3.00/piece of check, draft, certificate, etc.
bearing interest, and other instruments
Original issue of all debt instruments P1.50 / P200 of issue price or a fraction of 365 days for
instruments with term of less than one (1) year
Acceptance of Bills of exchange or order drawn in P0.60 / P200
foreign country but payable in the Philippines
Foreign bills of exchange and letters of credit P0.60 / P200
Life insurance policies amount:
If the amount of insurance does not exceed P100,000 Exempt
If the amount of insurance exceeds P100,000 but does not exceed P300,000 P20
If the amount of insurance exceeds P750,000 but does not exceed P1,000,000 P150
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Documentary Stamp Tax (DST)
Documents/Transactions Tax Rate
If the amount of insurance exceeds P1,000,000 P200
Policies of insurance upon property P0.50 / P4.00

Fidelity bonds and other insurance policies P0.50 / P4.00
Policy of annuities P1.00 / P200 of the premium or installment payment on contract
price collected
Pre-need of annuities P0.40 / P200 of the premium or contribution collected
Pre-need plans P1.00 / P200 of the premium or installment payment on contract
price collected
Indemnity bonds P0.30 / P4.00
Certificates (Sec. 188 of the Tax Code) P30 / certificates
Warehouse receipts P30 with value above P200
Jai-alai, horse race tickets, lotto, or other authorized P1.00 and P0.20
number of games below
Above P1.00 P0.20 / P1.00
Bills of lading or receipts P100 to P1,000 P2.00

Above P1,000 P20
Proxies for voting at any election P30.00/ issued proxy

Powers of attorney P30.00/power of attorney
Leases and other hiring agreements 1st P2,000 P6.00
In excess P2.00/P1,000
Mortgages, pledges and deeds of trust 1st P5,000 P40.00

In excess P20.00/P5,000
On assignments and renewals of certain instruments Same rate as original instrument

Bills of exchange or drafts P0.60 on each P200
On deeds of sale, conveyances, and donations of First P1,000 of P15
real property value received
In excess of P15/P1,000
Note: Transfers exempt from the donor’s tax shall P1,000
be exempt from the DST imposed under Section
196.
Charter parties and similar instruments if gross
tonnage of the ship, vessel or steamer is:
1,000 tons and below 1st 6 months P1,000
In excess +P100/month
1,001 to 10,000 tons 1st 6 months P2,000

In excess +200/ month
Over 10,000 tons 1st 6 months P3,000

In excess + 300/ month
Basic principles in DST imposition
1. One transaction, one Documentary stamp tax is imposed on a one-transaction, one-tax basis.
tax
Example 1: Mr. A arranged to borrow up to P1,000,000 from a bank. He made
borrowed and paid P1,000,000 three times. Every instance of borrowing is a separate
transaction subject to DST.
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Example 2: AAA Corporation issued shares with P1,000,000 par value to a subscriber
who exchanged his land with zonal value of P1,500,000. This is taxable as a share issue
transaction. The exchange of the property as payment for the issuance of shares is not
a separate transactions.
Example 3: BBB Lending Company loaned DDD Company P2,000,000. BBB required
DDD to submit a promissory note to secure the loan. The loan agreement and the
promissory note used to secure it relates to one and the same transaction. Only one
DST shall be imposed.
2. Scope of taxable DST applies whenever the right or obligation arises from the Philippines or when
transaction property or object of contract is in the Philippines regardless of the place where the
document is executed.
Example 1: While abroad, OFW’s A and B, executed a deed of sale involving A’s land in
the Philippines to be bought by B. The transaction evidenced by the deed of sale is
subject to DST since the object of the contract, land, is located in the Philippines.
Example 2: Pilipinas Company Finance accepted a bill of exchange from abroad

ordering it to pay Philippine resident exporter. The acceptance of the bill of exchange is
subject to DST since the obligation to make payment arises from the Philippines.
Example 3: A Pilipinas bank entered into a loan agreement with a non-resident foreign
company. The loan agreement shall be subject to DST since the right arises from the
Philippines.
Example 4: An OFW in Japan entered into a lease contract to rent his residence from a
Japanese lessor. This lease agreement shall not be subject to DST since both right and
obligation do not arise from the Philippines.
3. Invalidity of contract Documentary stamp taxes are levied independently of the legal status of the transaction
does not affect DST giving rise thereto. The DSTs must be paid upon the issuance of the said instruments,
imposition without regard to whether the contracts which gave rise to them are rescissible, void,
voidable, or unenforceable. (Philippine Home Assurance Corp. v. Court of Appeals,
1999)
Example 1: CCC Insurance issued various policies to several insured and paid
documentary stamps were paid on the policies. The insured were not able to pay the
premiums resulting in the subsequent cancellation of the policies. Is CCC Insurance
entitled to refund of the DST?
No. Documentary stamp tax is a tax on the privilege of conducting a particular

business or transaction. It is imposable once the right or privilege is exercised through
the execution of specific instruments independent of the legal status of the transaction
giving rise thereto.
4. Only transactions or It is a basic rule in taxation that anything not specifically taxed is not taxable.
documents listed by the
law is taxable
STAMP TAXES ON REAL PROPERTIES
Stamp Taxes on Real Properties
Deed of sale and The sale of property shall be subject to a documentary stamp tax of P15 for every P1,000 or
real properties (1.5%) of the selling price or fair value whichever is higher.
Transacting parties Documentary stamp tax basis

Between private persons The higher of selling price or fair value
With the government or GOCCs Selling price or consideration
This covers only sales transactions where real property is conveyed to a purchaser for a
consideration. It does not cover all conveyances of property except donation.
Donation of real The donation of real property is subject to documentary stamp tax of P15 for every P1,000 of
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properties the fair value of the property donated. Donations to the government or to accredited non-profit
organizations shall not be subject to documentary stamp tax.
Summary of DST rules on real property

Taxable transactions Tax basis
1. Sale
- To government Selling price
- Private persons Selling price or fair value, whichever is higher
2. Donation
- To government Exempt
- To accredited non-profit Exempt
- Other donees Fair value
REVIEW QUESTIONS
Problem 1: (Deed of sale and real properties) AAA Corporation sold its commercial building for P10,000,000 to BBB
Company. The land had a zonal value of P4,000,000 and fair value per assessor’s office of P3,000,000. The building had
a P8,000,000 fair valuer per assessor’s office.
Required: Compute the Documentary Stamp Tax.
The fair value of the commercial building shall be:
Fair vlaue of land (zonal higher) 4,000,000

Fair value of building 8,000,000
Fair value of real property 12,000,000
The basis of the tax is the fair value being higher than the P10M selling price.
The DST shall be computed as:
Fair value of real property 12,000,000

Multiply by (P15/P1,000) 1.5%
Documentary stamp tax 180,000
Problem 2: (Deed of sale and real properties) Mr. D sold his property with fair value of P10,000,000 to the
government for P8,000,000.
Required:
1. Compute the DST.
2. Assuming Mr. D sold his property for P12,000,000 instead of P8,000,000. Compute the DST.
The documentary stamp tax shall be computed as:
Fair value 8,000,000


Note: The basis of the documentary stamp tax on sales of property to the government is the selling price, not whichever
is higher between selling price or fair value.
Problem 3: (Donation of real properties) Mr. DDD made a deed of donation involving his tricycle worth P130,000 and
a piece of land worth P240,000 in favor of his younger brother Jun.
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Required: Compute the Documentary Stamp Tax.
Fair value 240,000

Note: Exemption from donor’s tax does not mean exemption from DST. The donor’s tax would be computed as
(P130,000 + P240,000 – P250,000) x 6%
Problem 4: (Donation of real properties) Mr. X donated two lots to the government and to a non-profit institution.
The first lot worth P10,000,000 is intended as a building site of a government agency. The second lot worth P4,000,000 is
restricted by Mr. X to be used by the non-profit institution for its programmed benevolent activities.
Required:
1. Compute the DST.
2. What is the second donation is intended for support or administrative expenses of the non-profit institution?
1. The first donation is intended for public purpose. It is exempt from donor’s tax including documentary stamp tax.
The second exempt donation is also exempt from documentary stamp tax.
2. P4,000,000 x 1.5% = P60,000

STAMP TAXES ON SHARES OF STOCK
Original issue of The original issue of stocks is subject to a DST of P2.00/P200 of par value.
stocks
If the stocks issued is a no par value shares, the DST shall be based on the actual
consideration.
In the case of stock dividend, the DST is based on the actual value represented by each
share.
Examples of taxable transactions:
1. Approval of the application for registration of stock corporations with the Securities and
Exchange Commission (SEC)
2. Increase of authorized capitalization with the SEC requiring minimum subscription of 25%
based on authorized capitalization
3. Issuance of unsubscribed authorized capitalization requiring an application for confirmation
of Securities Regulation Code (SRC) exemption
4. Issuance of shares of stocks through declaration of stock dividends in the Philippines
On newly incorporating corporations, the documentary stamp tax is imposed upon approval of
the articles of incorporation and by-laws not upon the actual issue of the certificate of stocks.
Subsequent to incorporation, the DST is based upon subscription of shares.
Subsequent sale The subsequent sale of stocks is subject to a DST of P1.50/P200 of par value or fractional
of stocks thereof.
In case no-par value stocks, the DST shall be 50% of the DST paid on the original issue
of such stocks.
REVENUE MEMORANDUM CIRCULAR NO. 6-2022 issued on January 18, 2022 clarifies the Documentary Stamp
Tax imposed under Section 175 of the 1997 Tax Code, as amended, on transfer of shares of stocks.
The Documentary Stamp Tax (DST) is levied on the exercise by a person of certain privileges conferred by law for the
creation, revision, or termination of specific legal relationships through execution of specific instruments. It is in the
nature of an Excise Tax. Thus, the following transfers of shares of stock shall also be subject to DST under Section 175 of
the 1997 Tax Code, as amended:
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a. Transfer pursuant to a Deed of Donation;
b. Transfer pursuant to a Will of the Decedent as approved by the probate court in a Judicial Settlement of Estate;
and,
c. Generally, transfer of shares of stock from the decedent's estate to the heirs thru intestate succession (without a
Will) is not subject to DST under Section 175 of the 1997 Tax Code, as amended, as ownership of such shares is
transferred to the heirs via succession by operation of law. However, it would be different if, in case of a Judicial
Settlement of Estate as approved by the probate court or an ExtraJudicial Settlement of Estate (both without a
Will), the heir/s specifically waive/s or renounce/s his or her share over the inheritance (i.e., shares of stocks left
by the decedent), then, in such a situation, the renounced/waived shares of stock to be transferred to another
heir/s shall also be subject to DST pursuant to Section 175 of the 1997 Tax Code, as amended. In this case, the
rules set forth in Revenue Memorandum Circular No. 94-2021 apply.
REVIEW QUESTIONS
Problem 1: (Original issue of stocks) AAA Corporation was organized with a proposed capitalization of P10,000,000
divided into 200,000 common shares with a P50/share par value. On June 1, 2020, 80,000 of the common shares were
subscribed. Subscribers paid 40% of their subscription with the balance due in 1 month after registration with the
Securities and Exchange Commission. On July 7, 2020, AAA received approval of its Articles of Incorporation and By-Laws
from the SEC.
Required: Compute the DST.
There is no corporation yet as of June 1. The corporation begin to exist on July 7. The documentary stamp tax on June 7
share subscription shall be:
Total subscription (80,000 x P50) 4,000,000

Multiply by P2 / P200 1%
Problem 2: (Original issue of stocks) Assume on August 7, 2020, AAA received full payment of the subscription
receivables. AAA issued the share certificate at the same time. On September 12, 2020, AAA received subscription for
40,000 shares at P60/share from an investor who paid 50% of his subscription.
No more tax shall be imposable upon the full payment of the subscription and subsequent issue of certificates. The
documentary tax on the new subscription shall be:
Sept. subscription (40,000 x P50) 2,000,000

Note: The documentary stamp tax is based on the par value of the share subscription.
Problem 3: (Original issue of stocks) BBB Company issued 100,000 no-par value stocks for a used equipment with a
value of P800,000. The stocks have a stated value of P5/share in the by-laws.
Value consideration 800,000

Problem 4: (Subsequent sale of stocks) Mr. CCC is a holder of 10,000 P100-par value shares which he purchased for
a consideration of P1,800,000. He sold 4,000 shares for P240/share.

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Par value of stocks (4,000 x P100) 400,000
Multiply by: P1.5 / P200 0.75%
Problem 5: (Subsequent sale of stocks) Mr. EEE sold 10,000 no par value shares of GMA Company for P200/share.
He purchased the shares for P150/ share from a buyer who bought the shares from GMA Company for P120/share.
Original issue price (10,000 x P120) 1,200,000

Multiply by: P2 / P200 1%
Documentary stamp tax paid on issuance 12,000
Multiply by: 50% 50%
Documentary stamp tax due 6,000
One transaction means one tax. One deed means one tax. All integral part of the transaction shall not be separately
taxed.
Problem 6: (Statutory merger) A Company entered into a statutory merger with B Company wherein A shall issue
shares in exchange for the shares of B Company. Incident thereto, B Company’s asset which include some real estate and
liabilities shall be assumed by A Company.
Required: Is Company A subject to DST?
The issuance of A’s shares shall be subject to DST. However, the exchange of B’s shares by its shareholders, the
surrender of the real property of B, and A’s assumption of B’s liabilities shall not be separately subject to DST.
Only one tax shall be collected on each sale or transfer of the stock from one person to another, regardless of whether or
not a certificate of stock is issued, indorsed, or delivered in pursuance of such sale or transfer.
SPECIAL CASES:
1. Issue of stocks for AAA invested his commercial land in the stocks of ABACA corporation. ABACA issued him
property 1,000,000 shares with P10/share par value. The commercial land has a zonal value of
P12,000,000.
In this case, the property is not said to have been “sold” because this is an investment
transaction. It is the issue of the stocks that should be subject to DST. The DST shall be
computed as P10,000,000 x P2/P200 = P100,000
2. Stock dividend BBB Company declared P10,000,000 stock dividends. Its stock which has P20/share par value
has a current fair value of P100 / share. Thus, BBB Company issued 100,000 stocks with P200
Stock issued as stock value as dividends to shareholders.
dividends are taxable at
the value represented by The documentary stamp tax shall be computed on the value represented by the dividends, as
the stock dividends. follows:
Value of stock dividend 10,000,000

Multiply by: P2 / P200 1%
3. Initial public Labada Company had 200,000 P100-par value shares authorized out of which 100,000 shares
offering and sale of are issued. Mr. WWW and Mr. TTT owns 20,000 and 10,000 of these issued shares.
stocks through the
PSE On June 10, 2020, Labada Company decided to conduct an IPO to sell 25,000 of its unissued
shares for P125 per share. Mr. WWW decided to sell 20,000 of his share in the IPO.
The sale, barter or
exchange of shares of The issue of 25,000 primary shares shall be subjected to DST at the rate applicable to issue
stocks listed and traded of stocks. The 20,000 secondary shares also be subjected to DST at the rate applicable to
through the local stock sale of stocks. The exemption pertains only to listed shares. These shares are yet to be
exchange is not subject listed.
to documentary
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stamp tax. Assume that on June 12, 2020, Mr. TTT decided to sell his 10,000 for P130/share.
This shall not be subjected to documentary stamp tax since this is a sale involving listed
shares.
Assume further that Labada conducted a follow-through offering involving 30,000 more shares
at P140 / share.
This shall be subject to documentary stamp tax at the rate applicable for issue of stocks
since these are issue of new shares yet to be listed.
4. Deposit for stock EEE to become a shareholder of Axa Company, Mr. Waley deposited P40,000,000 to the
subscription company for future subscription of stocks to be issued.
Deposits for future subscription of stocks is not subject to documentary stamp tax since
the person making the deposit does not have the standing of a shareholder. (BIR vs. First
Express Pawnshop, G.R. Nos. 172045-46, June 16, 2009.)
Assume Mr. Waley is an existing shareholder of Axa Company except that the deposits are
converted to additional paid up capital without the issuance of shares.
Shareholder’s assessments without the issuance of stocks is not subject to documentary

stamp tax.
STAMP TAX ON CERTIFICATES OF PROFITS OR INTEREST IN PROPERTY OR ACCUMULATIONS
Stamp tax on certificates of profits or interest in property or accumulations
 On all certificates of profits or any certificates or memorandum showing interest in the property or accumulations
of any association, company or corporation, an on all transfer of such certificate or memoranda, there shall be
collected a documentary stamp tax of P1 for every P200, or fractional parts thereof, of the face value of such
certificate or memorandum.
 Profit participation certificate (PPC) entitle holders to dividend distributions but are not equity interest in a
corporation thereby holders are not allowed to vote in the company. They are also similar to bonds without the
fixed interest return and nominal value. PPC holders benefit from higher dividends when the issuer’s business
grows. PPCs are ideal for companies wanting to raise additional capitalization without causing dilution in
ownership structure of its owners.
 Interest in property or accumulation includes interest in various funds such as trust funds, mutual funds and
others whether of income or accumulation types.
REVIEW QUESTIONS
Problem 1: (Stamp tax on certificates of profits) AAA Growth Fund issued 100,000 units to investor GGG for P10/
unit.
The documentary stamp tax shall be P1,000,000 x P1/P200 = P500
Problem 2: (Stamp tax on certificates of profits) BBB bought 10,000 profit certification certificate from Silver
Company at the issue price of P10 each. BBB later on transferred the same to Jun for P13 each.
The issue by Silver Company of the PPCs shall be subject to P500 documentary stamp tax, computed as 10,000 x P10 x
P1/200. BBB shall pay the same amount of documentary stamp tax on its subsequent sale.
STAMP TAX ON DEBT INSTRUMENTS
Stamp tax on debt On every original issue of debt instruments, there shall be collected a stamp tax of
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instruments P1.50/P200, or fractional thereof, of the issue price of any such debt instrument.
For purposes of this DST, debt instruments mean instruments representing borrowing and
lending transactions including but not limited to debentures, certificates of indebtedness, due
bills, bonds, loan agreements, including those signed abroad wherein the object of contract is
located or used in the Philippines, instruments and securities issued by government or any of
its instrumentalities, deposit substitute, debt instruments, certificates or other evidences of
deposits that are either drawing interest significantly higher than the regular savings deposit
taking into consideration the size of the deposit and the risks involved or drawing interests
and having a specific maturity date, orders for payment of any sum of money otherwise than
at sight on demand, promissory notes, whether negotiable or non-negotiable, except bank
notes issued for circulation.
For debt instrument with terms less than 1 year, the DST to be collected shall be proportional
amount in accordance with the ratio of its term in number of days to 365 days.
Only one DST shall be imposed on either loan, agreement, promissory notes issued to secure
such loans.
Loan agreement A contract in writing where one of the parties delivers to another money or other consumable
thing, upon the condition that the same amount of the same kind and quality shall be paid. It
includes credit facilities which may be evidenced by credit memo, drawings or advice,
including intercompany advances.
The documentary stamp tax applies on all loan agreements whether made or signed in the
Philippines, or abroad when the obligation or right arises from Philippine sources or the
property or object of the contract is located or used in the Philippines.
Short -term The DST on short-term borrowing is prorated based on the actual days of borrowing over 365
borrowing days.
Exemption to the 1. Borrowing and Lending of securities executed under the Securities Borrowing and Lending
Documentary stamp Program.
tax on loans 2. Loan agreements or promissory notes not exceeding an aggregate amount of P250,000
executed by individuals on non-business purchases or hire of a house, lot motor vehicle,
appliance or furniture on installments.
3. Interbranch or interdepartmental advances within the same legal entity.
4. Forbearances arising from sales or service contracts including credit card and trade
receivables.
5. Bank deposit accounts without a fixed term or maturity.
6. Interbank call loan with maturity of not more than 7 days to cover deficiencies in reserves
against deposit liabilities, including those between or among banks or quasi-banks.
7. Derivatives including repurchase agreements and reserve repurchase agreements.
8. Fixed income and other securities traded in secondary markets or through an exchange.
REVIEW QUESTIONS
Problem 1: (Loan Agreement) A and B entered into a loan agreement whereby A lent B P500,000 at a 10% interest
per annum due in 2 years. B is required by A to submit a promissory note to secure the loan agreement.
Required:
1. Compute the DST.
2. Assuming that after the lapse of 2 years, B renewed the loan for another two-year term, compute the DST.
Loan principal 500,000

Multiply by: P1.50/P200 0.75%
No DST shall separately be imposed on the promissory note since it is merely incidental to the same loan agreement. B
could have simply executed a promissory note without need of the loan agreement.
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Assuming that after the lapse of 2 years, B renewed the loan for another two-year term, the same amount of DST shall
be payable on such renewal as it is another transaction.
Problem 2: (Bonds) KKK, Inc., a domestic corporation, issued 20,000 P1,000 face value bonds to various investors.
The bonds pay 10% annual interest and mature in five years.
Bonds face (20,000 x P1,000) 20,000,000

Problem 3: (Bonds) Assume Mr. Dizon is one of the investors of bond in the previous problem no. 2. Mr. Dizon
purchased 200 bonds with P1,000 face value. He assigned all of his bond holding to ABC Company for P210,000.
The assignment of domestic bonds is not subject to documentary stamp tax. Only the original issue of the same is subject
to tax.
Problem 4: (Short-term borrowing) On January 1, 2020, Big and Boy entered into a loan agreement whereby Big lent
Boy P800,000 at a 12% interest per annum due in October 31, 2020.

Multiply by: P1.50 / P200 0.75%
Documentary stamp tax for 1 year 6,000
Multiply by: Prorated term 305/365
Documentary stamp tax due 5,013.70
Note: January 1 to October 31 is 305 days. Note that 2020 is a leap year.
Problem 5: (Exemption) BBB Corporation made several advances to its branch in Cebu City and its subsidiary, Manila
Company:
Cebu City Branch office P400,000
Manila Company 800,000
Total advances P1,200,000
The documentary stamp tax shall be:
Advances to Manila Company 800,000

Multiply by: P1.50 / P200 0.75%
Note: Inter-company advances is subject to documentary stamp tax but advances between business divisions,
departments or branches of the same taxpayer is exempt.
Problem 6: (Exemption) Speculating that the shares of listed company XXX with fall in the near term, Allan borrowed
from Mayaman investor, 20,000,000 shares of XXX with prevailing fair value of P10/share and par value of P1/ share.
Allan sold the shares in the market at the current fair value of P10/share and agreed to return the 20,000,000 borrowed
shares within 6 months. Allan bought back the 20,000,000 XXX shares from the market when it is trading at P2/share
and returned the same to Mayaman.
The share borrowing transaction is not subject to documentary stamp tax.
Problem 7: (Exemption) Villar entered into four loan agreement covering various items purchased on installment:
P a g e | 14
Loan Principal Supplier Item purchased on installment
1 P200,000 A Xerox copier, for business use
2 800,000 B Car, for personal and family use
3 150,000 C Entertainment set, for family use
4 450,000 D Printer, for business use
The business loans (Loan 1 and Loan 4) and the personal loan exceeding P250,000 (Loan 2) shall be subject to the
documentary stamp tax imposed on loans.
Problem 8: (Exemption) Carlo Santos imported various $100,000 goods from US Industrials on open account
arrangement. To hedge the foreign currency risk, Carlo entered into a forward contract to buy $100,000 at a fixed price
of P52/$1.
The trade accounts payable is not subject to DST. Likewise, the forward contract is a derivative contract that is exempt
from DST.
STAMP TAX ON BONDS, DEBENTURES, CERTIFICATES OF STOCKS OR INDEBTEDNESS ISSUED IN FOREIGN

COUNTRIES
Stamp tax on bonds, debentures, certificates of stocks or indebtedness issued in Foreign Countries
 On bonds, debentures, certificates of stock or indebtedness issued in any foreign country, there shall be collected
from the person selling or transferring the same in the Philippines, such tax as is required by law on similar
instruments when issued, sold or transferred in the Philippines.
 Note that when these securities are issued or transferred abroad, they are not subject to documentary stamp
tax. When they are sold in the Philippines they are subject to documentary stamp tax.
 Comparison of DST Rules on Shares and Debt Instruments:
Domestic Foreign
Shares of stocks
-Issue of stocks Taxable Exempt
-Transfer of stocks Taxable Taxable (2)
Debt instruments
-Issue of debt instruments Taxable Exempt
-Assignment of debt instruments Taxable (1) Taxable (2)
Note:
 (1) Taxable if the assignment or re-assignment of the instruments entails changing the maturity date or
remaining period of coverage from that of the original instrument or carries with it a renewal or issuance of new
instruments in the name of the transferee to replace the old ones, otherwise, it is exempt. (RR 14-2012; RMC 77-
2012)
 (2) Taxable if the buyer or assignee is a Philippine resident.
REVIEW QUESTIONS
Problem 1: (Indebtedness issued in Foreign Countries) Kaloy invested in the bonds of AAA Company in the United
States. The bonds were issued at a price of P26,000,000 in Peso equivalent. The bonds pay 9% annual interest and
matures in 4 years. Kaloy transferred the bonds at a consideration of P27,000,000 in the Philippines to ABM Investors.
The issue of the bonds abroad is not subject to documentary stamp tax. The subsequent sale of the bonds in the
Philippines is subject to documentary stamp tax at the rate applicable on issue of domestic bonds:
Issue price 26,000,000

Multiply by: P1.50 / P200 0.75%
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Problem 2: (Indebtedness issued in Foreign Countries) Mr. X, an OFW, invested in the stocks of Hong Kong
Auctioneers while in abroad. He was issued 100,000 shares at P20/share par value in Peso Equivalent. Mr. X later on
disposed the shares in the Philippines to his friend, Don Manuel for P22 /share.
The issue of the foreign shares abroad shall not be subject to documentary stamp tax. The sale of such foreign stocks in
the Philippines shall be subject to the same documentary stamp on the sale of domestic stocks as follows:
Par value of stock (100,000 x P20) 2,000,000

Multiply by: P1.50 / P200 0.75%
STAMP TAX ON MORTGAGES, PLEDGES AND DEEDS OF TRUSTS
Stamps tax on mortgages, pledges and deeds of trusts
 On every mortgage or pledge of lands, estate, or property, real or personal, heritage or movable, whatsoever,
where the same shall be made as a security for payment of any definite and certain sum of money lent at the
time or previously due and owning or forborne to be paid, being payable, and on any conveyances of land, estate
or property whatsoever, in trust or to be sold, or otherwise converted into money which shall be and intended
only as security, either by express stipulation or otherwise, there shall be collected a documentary stamp tax at:
 -Amount not exceeding P5,000 – P40
 -On each P5,000 or fractional part thereof in excess of P5,000, P20
 Note that the DST covers mortgage, pledge and deed of trust of any property.
REVIEW QUESTIONS
Problem 1: (Mortgage) Mr. A bought John’s residential house for P4,000,000. He paid P1,000,000 down and mortgage
back the property as security for the P3,000,000.
The documentary stamp tax on the mortgage shall be computed as:
Mortgage 3,000,000 DST

Less: (5,000) 40
Excess 2,995,000
Divided by: 5,000
Total 599
Multiply by: 20 11,980
Note:
1. John shall be separately subject to documentary stamp tax on the deed of sale of the property.
2. The mortgage is not an incidental part of the sales transaction. Being a separate transaction from the sale, it is subject
to separate documentary stamp tax.
Problem 2: (Mortgage) SSS Finance lent various clients under a long-term collateralized borrowing scheme:
Borrowings Collateral or security
Client A P2,000,000 Real estate worth P3,000,000
Client B 1,500,000 Chattel mortgage, car worth P1,800,000
Client C 1,000,000 Pledge of shares of stocks worth P1,200,000
Each of the loan agreements shall be subject to the DST imposed on loans. The real estate mortgage, the chattel
mortgage and the pledge shall be subject to DST based on the amount of borrowings they secure.
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STAMP TAX ON BILLS OF EXCHANGE, DRAFTS OR ORDER
Bill of exchange A bill of exchange is a written unconditional order made by one party to another to
pay a certain sum of money on demand or on a predetermined date.
Bill of exchange vs. A bill of exchange is negotiable while promissory note is not. A bill of exchange can
Promissory note be used to order a third party who was not a party to the transaction to make
payment.
DST rate P0.60 for every P200, or fractional part thereof, of the face value.
Scope of the DST on bills of 1. Bills drawn and payable between points in the Philippines
exchange 2. Bills drawn in foreign country but payable in the Philippines
3. Foreign bills of exchange and letters of credit (i.e. drawn within but payable
outside the Philippines)
Exempt transactions 1. Electronic instruction to transfer fund

2. Remittances of overseas Filipino workers (OFWs)
REVIEW QUESTIONS
Problem 1: (Bill of Exchange) As settlement for the goods it received, SSS Company issued a sight bill in favor of
supplier Barama. The bill is addressed to Isa Trade Financing Corporation to pay P1,248,910.
The documentary stamp tax shall be:
Face amount 1,248,910

Divide by: 200
Total 6,245
Multiply by: 0.60
STAMP TAX ON BANK CHECKS, DRAFTS, CERTICATES OF DEPOSITS, NOT BEARING INTEREST AND OTHER INSTRUMENTS
Check Check is an instrument containing an unconditional order to a banker directing him to pay a specified
sum of money to the person named therein.
Check vs. Bills of Exchange

Checks Bills of Exchange
Drawee Bank Bank or other persons
Expiration 3 months n/a
Acceptance Not required Required
Payment On demand upon presentation Grace period is allowed
Protesting on dishonor No protest Can be protested
Draft Draft is an instrument created by the bank (drawer) to be given to a payee. It is a guaranteed
payment by a bank on behalf of a payer. The amount on the bank draft is normally pre-deducted to
the source account before release of the draft.
Check vs. Draft

Check Draft
Parties Drawer, drawee and payee Drawer and payee
Drawer Account holder of a bank One branch of a bank to
another
Clearance and approval Required No need (assured)
Protesting on dishonor No protest Can be protested
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DST Rate: On each bank check, draft, or certificate of deposit not drawing interest, or order for the payment of
any sum of money drawn upon or issued by any bank, trust company, or any person or persons,
companies, or corporations, at sight or on demand, there shall be collected a stamp tax of P3.
REVIEW QUESTIONS
Problem 1: (Checks) A depositor of Banco De Oro requested for a booklet of personal check consisting of 50 copies for
drawing against his current account.
The bank shall require payment of P150, computed as P3 x 50, Documentary Stamp Tax.
STAMP TAX ON BILLS OF LADING OR RECEIPTS
Bills of lading Bills of lading is a document signed by a transport carrier of goods to a shipper of goods
that evidences the receipt of goods to be shipped to a particular destination or person.
Types of bill of lading 1. Straight bill – goods are consigned to a designated party; hence, non-transferrable or
non-negotiable
2. Order bill – goods are consigned to the order of a name party; hence, transferrable or
negotiable
DST rate On each set of bills of lading or receipt for any good, merchandise, or effects shipped:
a. From Philippine port to another Philippine port
b. From Philippine port to any foreign port
Value of goods DST rate

>P100 to P1,000 P2
>P1,000 P20
Exception 1. Charter party

2. Ferries across rivers
3. Baggage accompanying passengers of land and water carriers
REVIEW QUESTIONS
Problem 1: (Bills of lading) BBB Cargo Shipping Company received the following goods for shipment from various
clients during the month:
Nos. of clients per shipment type
Declared amount Inter-domestic Outbound for abroad Inbound for Philippines
Less than P100 12 - -
P101 to P1,000 314 114 26
More than P1,000 191 148 562
Inter-domestic DST
Less than P100 (No tax imposed) -
P101 to P1,000 (314 x P2 / bill of lading) 628
More than P1,000 (191 x P20 / bill of lading) 3,820 4,448
Outbound:
P101 to P1,000 (114 x P2 / bill of lading) 228
More than P1,000 (148 x P20 / bill of lading) 2,960 3,188
Total documentary stamp tax 7,636
STAMP ON WAREHOUSE RECEIPTS
Warehouse receipt Warehouse receipt is a document issued by a warehouseman evidencing receipt

of goods stored or deposited therein. It also serves as a guarantee of the quantity
and quality of goods stored therein and evidence of title to the stored goods.
P a g e | 18
DST rate P30 per receipt
Exception 1. Receipts issued for goods worth P200 or less to any person in any calendar
month
2. Receipts issued by the warehouse owner for his own goods
REVIEW QUESTIONS
Problem 1: (Warehouse receipt) AAA Safekeepers maintains a warehouse in Laguna for various commercial clients.
During the month it issued the following receipts:
Nos. of receipts Total declared value
Receipts issued to clients
≤ P200 in value 2 P180
> P200 in value 49 378,000
Receipts issued for own goods 3 42,000
Total 55 P420,180
The documentary stamp tax shall be P1,470, computed as 49 x P30.
LEASE AGREEMENT
Lease Agreement
Lease agreement On each lease, agreement, memorandum, or contract for hire, use or rent of any lands or
tenements, or portion thereof, there shall be collected a documentary stamp tax for each
year of term of said contract or agreement:
First P2,000 or fraction thereof P6
Excess: For every P1,000 or fraction P2
thereof
Lessor regulation RR12-2011 set reportorial requirements for leasing or renting commercial establishments.
Lessors are required to see to it that lessees have:
1. A taxpayer’s identification number (TIN)
2. BIR certificate of registration
3. Duly registered receipts or invoices
REVIEW QUESTIONS
Problem 1: (Lease Contract) X and Y entered into a lease agreement whereby X shall rent a commercial space from Y
for P10,000 a month over a 5-year lease term.
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Multiply by: months in a year 12
Annual rentals 120,000
Multiply by: Nos. of years 5
Total rentals 600,000 DST
Less: (2,000) 6
Excess 598,000
Divided by: 1,000
598
Multiply by: 2 1,196
Total documentary stamp tax 1,202
Problem 2: (Lease Regulation) A and B drafted a contract of lease involving A’s truck ship to be rented by John for
P8,000 a month for 6 months.
There shall be no imposable documentary stamp tax as the DST applies to leases of land or tenements or portion thereof.
The DST applies only to rentals of real properties to the exclusion of movables.
Problem 3: (Lease Regulation) C and D drafted contract of lease involving C’s ship to be rented by D for P8,000 a
month for 6 months.
The rental agreement is subject to the DST imposed on charter parties to discussed in the succeeding section. Note that
ships, vessels or steamers are considered immovables to the extent that they cannot be removed from water.
STAMP TAX ON CHARTER PARTIES AND SIMILAR INSTRUMENTS
Stamp Tax on Charter Parties and Similar Instruments
 On every charter party, contract or agreement for the charter of any ship, vessel or steamer, including renewal or
transfer of such charter, contract or agreement, there shall be collected a documentary stamp tax:
Duration of charter
Ship gross tonnage First 6 months Excess over 6 months
≤1,000 tons P1,000 P100/month or fraction
>1,000 to 10,000 tons P2,000 P200/month or fraction
>10,000 tons P3,000 P300/month or fraction
REVIEW QUESTIONS
Problem 1: (Charter Parties) Cagayan Seagoers chartered a 5,000-tonner vessel at a contract price of P1,000,000 per
month over a total of 9.5 months.
Total months (round-up) 10 DST

Less: Tax on first 6 months (6) 2,000
Excess months 4
Multiply by: Monthly tax 200 800
Note: Fractional month is counted as one
STAMP TAX ON INDEMNITY BONDS, ANNUITIES, PRE-NEED PLANS AND INSURANCE
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DST rates
Life insurance policies Per policy
≤P100,000 Exempt
>P100,000 to P300,000 P20
>P300,000 to P500,000 P50
>P500,000 to P750,000 P100
>P750,000 to P1,000,000 P150
>P1,000,000 P200
Other insurance policies, Indemnity, On Premium or Fraction thereof

Annuity or Pre-need Contracts
Property insurance policies P0.50 / P4
Fidelity bonds and other insurance policies P0.50 / P4
Indemnity bonds P0.30 / P4
Annuities or pre-need P1.00/ P200
The tax rates also apply on renewal of such contracts.
Non-life insurance While imposed on the policy document, the DST is a tax on the privilege of conducting a
contracts particular business or transaction. The DST is due and payable upon execution of the contract.
Thus, the subsequent non-payment of the premium is not a bar to imposition of DST. The
liability for documentary stamp tax accrues upon issuance of the insurance policy, even in the
event of subsequent cancellation of the said policy.
Insurance companies shoulder the payment of DST on the insurance policies.
REVIEW QUESTIONS
Problem 1: (Non-life insurance) AAA Corporation had the following data on its premiums register on non-life
insurance contracts.
Total premiums charged P4,000,000
Less: Returned premiums on cancelled contracts (300,000)
Net premiums received P3,700,000
Tota premiums charged 4,000,000

Note: The DST is based on amount charged.
Problem 2: (Life Insurance) BBB Insurance Corporation had the following summaries of life policies and premium
received during the month:
Policy name Policy face value Policies issued Total premium
chargeable
A P500,000 21 P3,100,000
B P750,000 11 P2,500,000
C P2,000,0000 10 P3,800,000
A (21 x P50/policy) 1,050

B (11 x P100/policy) 1,100
C (10 x P200/policy) 2,000
Total documentary statmp tax 4,150
STAMP TAX ON CERTIFICATES
Stamp tax on certificates
P a g e | 21
 On each certificate of damage or otherwise, and on every certificate or document issued by any customs officer,
marine surveyor, or other person acting as such, and on each certificate issued by a notary public, and on each
certificate of any description required by law or by rules or regulation of a public office or which is issued for the
purpose of giving information, or establishing proof of fact, and not otherwise specified, there shall be collected a
documentary stamp tax of P30.
STAMP TAX ON PROXIES
Stamp Tax on Proxies On each proxy for voting at any election for officers or any company or corporation, or
for any other purposes, there shall be collected a documentary stamp tax of P30
Exception Proxies issued affecting the affairs of associations or corporations organized for
religious, charitable or literary purposes.
STAMP TAX ON POWER OF ATTORNEYS
Stamp tax on power of On each power of attorney to perform any act whatsoever, there shall be collected a
attorneys documentary tax of P10.
Exception Powers of attorneys involving acts connected with the collection of claims due from or
accruing to the Government of the Republic of the Philippines, or the government of
any province, city or municipality.
REVIEW QUESTIONS
Problem 1: (Power of attorneys) A issued a special power of attorney in favor of B granting him the power to sell A’s
car in the Philippines. A therefore executed a deed of sale transferring the car to the buyer C.
The special power of attorney shall be subject to a documentary stamp tax of P10. However, the deed of sale shall not be
subject to documentary stamp tax since only deed of sale on real property is subject to the tax.
JAI-ALAI AND HORSE RACE TICKETS, LOTTO AND OTHER AUTHORIZED NUMBER GAMES
Jai-alai and horse race tickets, lotto and other authorized number games
On each jai-alai, horse race ticket, lotto or other authorized number games, there shall be collected a documentary tax as
follows:
Ticket cost DST Rate

≤P1.00 P0.20
>P1.00 P0.20/P1.00 or fractional thereof
REVIEW QUESTIONS
Problem 1: (Jai-alai) AAA sold the following tickets during the month:
Price Ticket sold Total receipts
Straight bet P73.00 1,200 P87,000
Double bet P80.00 1,500 120,000
P a g e | 22
Trifecta P40.00 1,100 48,000
Straight bet (73 x P0.20) x 1,200 17,520

Double bet (80 x P0.20 ) x 1,500 24,000
Trifecta bet (40 x P0.20) x 1,100 8,800
Total documentary statmp tax 50,320
STAMP TAX ON ASSIGNMENTS AND RENEWALS OF CERTAIN INSTRUMENTS
There shall be collected a documentary stamp tax at a rate the same as that imposed on the original instrument upon:
1. Every assignment or transfer of any:
a. Mortgage
b. Lease
c. Policy of insurance
2. Renewal or continuance by altering or otherwise of any:

a. Agreement
b. Contract
c. Charter or
d. Any evidence of indebtedness
DOCUMENTS AND PAPERS NOT SUBJECT TO STAMP TAX
1. Policies of insurance made or granted by a fraternal, society, order, association or cooperative company
2. Certificate of oaths administered to any government official in his official capacity
3. Borrowing or lending of securities under the Securities Borrowing and Lending Program
4. Loans agreement or promissory notes, the aggregate of which do not exceed P250,000 for non-business
purposes
5. Sale, barter or exchange of shares of stocks listed and traded through the local stock exchange (RA 9648)
6. Assignment or transfer of any mortgage, lease or policy of insurance or renewal or continuances of any
agreement, contract, charter or evidence of obligation or indebtedness, if there is no change in the maturity date
or remaining period of coverage from that of the original document.
7. Fixed income or other documents traded in the secondary market
8. Derivatives, including repurchase agreements and reverse repurchase agreements.
9. Inter-branch or interdepartmental advances within the same legal entity
10. All forbearances arising from sales or service contracts including credit cards and trade receivables (limited to
those executed by the seller or service provider)
11. Bank deposit without a fixed term or maturity
12. All contract, deeds, documents and transactions related to the conduct of business of the BSP
13. Tax-free transfers of property (corporate re-adjustment)
14. Inter-bank calls loans with maturity of more than 7 days to cover deficiencies in reverse deposit liabilities,
including those made between banks and quasi-banks
15. Remittances of all OFWs
Note:
DOCUMENTARY STAMP TAX (CPA Board Exam Syllabus)
Describe, Analyze and Compute Documentary Stamp Tax(Limited to Shares of Stocks, Sales, Debt Instruments
and Deeds of Sale)
1 Definition
2 Coverage and Exemptions
3 Tax Base Rates
4 Time and Manner of Payment
P a g e | 23
*****SEC. 174. Stamp Tax on Original Issues of Shares of Stock.
On every original issue, whether on organization, reorganization or for any lawful purpose, of shares of stock by any
association, company or corporation.
Tax base  On par value stock – the par value of the stock issued
 On no-par value stock- the actual consideration received
 On stock dividend – the actual value represented by the stock
Tax rate Two pesos (P2.00) on each Two hundred pesos (P200), or fractional part
thereof, of the par value, of such shares of stock.
In the case of the original issue of shares of stock without par value – based
upon the actual consideration for the issuance of such shares of stock.
RMC 56-2019: Original issue of shares of stocks of new corporations, shall file the DST declaration/return (BIR
Form No. 2000) on original issue of shares of stock and pay the tax due within five (5) days after the close of the
month of the date of registration with the Securities and Exchange Commission.
***** SEC. 175. Stamp Tax on Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of
Shares or Certificates of Stock.
On all sales, or agreements to sell, or memoranda of sale, or deliveries, or transfer of shares, or certificates of stock in
any association, company, or corporation, or transfer of such securities by assignment in blank, or by delivery, or by
any paper or agreement, or memorandum or other evidences of transfers or sale whether entitling the holder in any
manner to the benefit of such stock, or to secure the future payment of money, or for the future transfer of any stock.
Tax base  On par value stock – the par value of the stock issued
 On no-par value stock- the actual consideration received
Tax rate One peso and fifty centavos (P1.50) on each Two hundred pesos
(P200), or fractional part thereof, of the par value of such stock.
Only one tax shall be collected on each sale or transfer of stock from one
person to another, regardless of whether or not a certificate of stock is issued,
indorsed, or delivered in pursuance of such sale or transfer.
In the case of stock without par value – equivalent to fifty percent (50%) of
the documentary stamp tax paid upon the original issue of said stock.
SEC. 174. Stamp Tax on Original Issues of Shares of Stock

Two pesos (P2.00) on each Two hundred pesos (P200), or fractional part
thereof, of the par value, of such shares of stock.
***** SEC. 176. Stamp Tax on Bonds, Debentures, Certificates of Stock or Indebtedness Issued in Foreign
Country.
Such as tax as is required by law on similar instruments when issued, sold or transferred in the Philippines.
Tax base The face value of the documents

Tax rate Two pesos (P2.00) on each Two hundred pesos (P200), or fractional part
thereof, of the face value
SEC. 177. Stamp Tax on Certificates of Profits or Interest in Property or Accumulations.
P a g e | 24
On all certificates of profits, or any certificate or memorandum showing interest in the property, or accumulations of
any association, company or corporation, and on all transfer of such certificates or memoranda.
Tax base Face value of the certificate indicating the amount of profit
Tax rate One peso (P1.00) on each Two hundred pesos (P200), or fractional part
thereof, of the face value of such certificates or memorandum.
SEC. 178. Stamp Tax on Bank Checks, Drafts, Certificates of Deposit not Bearing Interest, and Other
Instruments.
On each bank check, draft, or certificate of deposit not drawing interest, or order for the payment of any sum of money
drawn upon or issued by any bank, trust company, or any person or persons, companies or corporations, at sight or on
demand.
Tax base Value of the instrument

Tax rate Three pesos (P3) on each check, draft, and certificate of deposit issued
***** SEC. 179. Stamp Tax on All Debt Instruments
On every original issue of debt instruments
Tax base The face value of the documents

Tax rate One peso and fifty centavos (P1.50) on each Two hundred pesos (P200), or
fractional part thereof, of the issue price of any such debt instruments.
For such debt instruments with terms of less than (1) year – proportional amount in accordance with the ratio of its
term in number of days to three hundred sixty-five (365) days.
Only one documentary stamp shall be imposed on either loan agreement, or promissory notes issued to secure such
loan.
SEC. 180. Stamp Tax on All Bills of Exchange and or Drafts.
On all bills of exchange (between points within the Philippines) or drafts
Tax base Face value of the bill of exchange

Tax rate Sixty centavos (P0.60) on each Two hundred pesos (P200), or fractional
part thereof, of the face value of any such bill of exchange, or order, or the
Philippine equivalent of such value, if expressed in foreign currency
SEC. 181. Stamp Tax Upon Acceptance of Bills of Exchange and Others. –
Upon any acceptance or payment of any bill of exchange or order for the payment of money purporting to be drawn in
a foreign country but payable in the Philippines

Tax rate Sixty centavos (P0.60) on each Two hundred pesos (P200), or fractional
part thereof, of the face value of any such bill of exchange, or order, or the
Philippine equivalent of such value, if expressed in foreign currency
Acceptance of bills of exchange may connote the payment of such bill of exchange. Foreign bills of exchange accepted
or paid in the Philippines are subject to documentary stamp tax.
P a g e | 25
SEC. 182 Stamp Tax on Foreign Bills of Exchange and Letters of Credit. –
On all foreign bills of exchange and letters of credit (including orders by telegraph or otherwise, for the payment of
money issued by express or steamship companies or by any person or persons) drawn in but payable out of the
Philippine in a set of three (3) or more according to the custom of merchants and bankers

Tax rate Sixty centavos (0.60) on each Two hundred pesos (P200), or fractional
part thereof, of the face value of any such bill of exchange or letter of credit, or
the Philippine equivalent of such face value, if expressed in foreign currency.
SEC. 183. Stamp Tax on Life
Insurance Policies. –
On all policies of insurance or other instruments by whatever name the same may be called, whereby any insurance
shall be made or renewed upon any life or lives
If the amount of insurance does not exceed P100,000 Exempt
If the amount of insurance exceeds P750,000 but does not exceed P1,000,000 P150
If the amount of insurance exceeds P1,000,000 P200
SEC. 186. Stamp Tax on Policies of Annuities and Pre-Need Plans.
On all policies of annuities, or other instruments by whatever name the same may be called, whereby an annuity may
be made, transferred or redeemed
“One peso (P1.00) on each Two hundred pesos (P200), or fractional part thereof, of the premium or installment
payment on contract price collected.
On pre-need plans – Forty centavos (P0.40) on each Two hundred pesos (P200), or fractional part thereof, of the
premium or contribution collected.
SEC. 188. Stamp Tax on Certificates. –
On each certificate of damage or otherwise, and on every other certificate or document issued by any customs officer,
marine surveryor, or other person acting as such, and on each certificate issued by a notary public, and on each
certificate of any description required by law or by rules or regulations of a public office, or which is issued for the
purpose of giving information, or establishing proof of fact and not otherwise specified herein.
Tax base For every certificate issued

Tax rate Thirty pesos (P30.00)
Certificate subject to documentary stamp tax are:

1. Notarial certificates attached to the power or attorney
2. Certificate of ownership of real property.
SEC. 189. Stamp Tax on Warehouse Receipts. –
On each warehouse receipt for property held in storage in a public or private warehouse or yard for any person other
than the proprietor of such warehouse or yard
Tax base Number of receipts for property in excess of P200

Tax rate Thirty pesos (P30.00) per receipt issued
 No tax shall be collected on each warehouse receipt issued to any one person in any one calendar month
P a g e | 26
covering property the value of which does not exceed Two hundred pesos (P200)
 Documentary stamp tax on warehouse receipts covers properties held in storage for persons other than the
owner of the warehouse or yard.
“SEC. 190. Stamp Tax on Jai-alai, Horse Race, Tickets, Lotto or Other Authorized Numbers Games. – On
each Jai-alai, horse race ticket, lotto, or other authorized numbers games.
Tax base Amount of each ticket issued or sold

Tax rate Twenty centavos (P0.20)for every P1 of each ticket
If the cost of the ticket exceed One peso (P1.00), an additional tax of Twenty centavos (P0.20) on every One peso
(P1.00), or fractional part thereof, shall be collected.
SEC. 191. Stamp Tax on Bills of Lading or Receipts. –
On each set of bills of lading or receipts (except charter party) for any goods, merchandise effects shipped from one
port or place in the Philippines (except on ferries across rivers), or to any foreign port.
Tax base Every set of bills of lading issued

Tax rate “Two pesos (P2.00), if the value of such goods exceeds One hundred pesos
(P100) and does not exceed One Thousand Pesos (P1,000);
Twenty pesos (P20.00), if the value exceeds One thousand pesos (P1,000):
Freight tickets covering goods, merchandise or effects carried as accompanied baggage of passengers on land and
water carriers primarily engaged in the transportation of passengers are hereby exempt.
Note:
Exemptions: The following shipments or tickets are exempted from documentary stamp tax:
1. Transported goods with a value of not more than P100
2. Freight tickets of ferries crossing rivers
3. Freight tickets covering baggage of passengers travelling by land or water.
SEC. 192. Stamp Tax on Proxies –
One each proxy for voting at any election of officers of any company or association, or for any other purpose, except
proxies issued affecting the affairs of associations or corporations organized for religious, charitable or literary purposes
Tax base Number of proxies issued for voting at election or for any other purpose
Tax rate Thirty pesos (P30.00) per proxy
SEC. 193. Stamp Tax on Powers of Attorney.
On each power of attorney to perform any act whatsoever, except acts connected with the collection of claims due from
or accruing to the Government of the Republic of the Philippines, or the government of any province, city or
municipality.
Tax base Number of power of attorney

Tax rate Ten pesos (P10.00) per document
SEC. 194. Stamp Tax on Leases and other Hiring Agreements. –
On each lease, agreement, memorandum, or contract for hire, use or rent of any lands or tenements, or portions
P a g e | 27
thereof.
Tax base Amount received from lease, agreement, or contract

Tax rate Six pesos (P6.00) for the first Two thousand pesos (P2,000), or
fractional part thereof
An additional Two pesos (P2.00) for every one thousand pesos

(P1,000) or fractional part thereof, in excess of the first Two thousand pesos
(P2,000) for each year of the term of said contract or agreement.
SEC 195. Stamp on Tax on Mortgages, and Deeds of Trust – On every mortgage or pledge of lands, estate,
or property, real or personal, heritable or movable, whatsoever, where the same shall be made as a
security for the payment of any definite and certain sum of money lent at the time or previously due and
owing or for borne to be paid, being payable, and on any conveyance of land, estate, or property
whatsoever, in trust or to be sold, or otherwise converted into the money which shall be intended only as
security, either by express stipulation or otherwise.
Tax base Amount of the mortgage or pledge
Tax rate
(a) When the amount secured does not exceed Five thousand pesos
(P5,000), Forty pesos (P40.00)
(b) On each Five thousand pesos (P5,000), or fractional part thereof in

excess of Five thousand pesos (P5,000), an additional tax of Twenty
pesos (P20.00). [P20 FOR EVERY P5,000]
*****SEC 196. Stamp Tax on Deeds of sale, Conveyances and Donation of Real Property –
All conveyances, deeds, instruments, or writings, other than grants, patents or original certificates of adjudication
issued by the Government, whereby any land, tenement, or other realty sold shall be granted, assigned, transferred,
donated or otherwise conveyed to any other person or persons designated by such purchaser or purchasers, there
shall be collected a documentary stamp tax, at the rates herein below prescribed, based on the consideration
contracted to be paid for such realty or on its fair market value determined in accordance with Section 6(E) of this
code, whichever is higher: Provided, that when one of the contracting parties is the Government, the tax herein
imposed shall be based on the actual consideration.
Tax base Selling price or fair market value of the property, whichever is higher
Tax rate (a) When the consideration, or value received or contracted to be paid for
such realty, after making proper allowance of any encumbrance, does
not exceed One thousand pesos (P1,000), Fifteen pesos
(P15.00).
(b) For each additional One thousand pesos (P1,000), or fractional

part thereof in excess of One thousand pesos (P1,000) of such
consideration or value, Fifteen pesos (P15.00).
“When it appears that the amount of the documentary stamp tax payable hereunder has been reduced by an incorrect
statement of the consideration in any conveyance, deed, instrument or writing subject to such tax the Commissioner,
provincial or city Treasurer, or other revenue officer shall, from the assessment rolls or other reliable source of
information, assess the property of its true market value and collect the property tax thereon.
“Transfers exempt from donor’s tax under Section 101 (a) and (b) of the Tax imposed under this section.
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 60-2019 to clarify
the tax treatment of transfer of real property by an economic zone (ecozone) developer/operator duly
registered under the Philippine Economic Zone Authority (Peza) to another Peza entity.
P a g e | 28
Sales of real property within an ecozone by a Peza-registered ecozone developer/operator that enjoy the five percent
final tax on gross income to another Peza-registered enterprise likewise enjoy the five percent final tax incentive.
Both parties are exempt from documentary stamp tax imposed under Section 196 of the Tax Code, as
amended by the Tax Reform for Acceleration and Inclusion Law, provided that such sale is directly pursuant to their
registered activities.
Accordingly, the following documents shall be required from all parties to support the tax exemption of the sale
transaction to issue the electronic Certificate Authorizing Registration:
1. Certified true copy of the latest Peza Certificate of Registration of the Peza ecozone developer/operator and the
parties to the transaction;
2. Certified true copy of Peza registration agreement; and
3. Certified true copy of the following Peza certificate of available tax incentives as of the time of the transaction:
a. Peza Form 00-00-01 – Certificate on Entitlement of five percent gross Income Tax; and
b. Peza Form 00-03-01 – Certificate on Available Incentives.
SEC 197. Stamp Tax on Charter Parties and Similar Instruments –
On every charter party, contract or agreement for the charter of any ship, vessel, or streamer, or any letter or
memorandum or other writing between the captain, master or owner, or other person or persons for or relating to the
charter of any such ship, vessel or streamer, and on any renewal or transfer of such charter, contract, agreement,
letter of memorandum
Tax base Every charter party contracted
Tax rate (a) If the registered gross tonnage of the ship, vessel or streamer foes not
exceed one thousand (1,000) tons, and the duration of the charter or
contract does not exceed six (6) months, One thousand pesos
(P1,000); and for each month or fraction of a month in excess of six
(6) months, an additional tax of Fifty pesos (P100) shall be paid.
(b) If the registered gross tonnage exceed one thousand (1,000) tons and
does not exceed then thousand (10,000) tons, and the duration of the
charter or contract does not exceed six (6) months, Two thousand
pesos (P2,000); and for each month or fraction of a month in excess
of six (6) months, an additional tax of Two hundred pesos (P200) shall
be paid.
(c) If the registered gross tonnage exceeds ten thousand (10,000) tons
and the duration of the charter or contract does not exceed six (6)
months, Three thousand pesos (P3,000); and for each month or
fraction of a month in excess of six (6) months, an additional tax of
Three hundred pesos (P300) shall be paid.
SEC 198. Stamp Tax on Assignments and Renewals of certain Instruments. –
Upon each and every assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or
continuance of any agreement, contract, charter, or any evidence of obligation or indebtedness by altering or
otherwise.
The same rate as that imposed on the original instrument.
Revisiting DST on advances between affiliates
Taxwise Or Otherwise
By Marion D. Castañeda By Marion D. Castañeda
Assets = Liabilities + Equity.
It is the basic accounting equation that should be familiar to those in the world of business and even business
students. These three are presented in the statement of financial position (or ‘balance sheet’ as it is usually
P a g e | 29
called). The balance sheet gives various stakeholders such an important view of the business, it is normally
the first part to be presented in a complete set of financial statements (FS). For instance, potential investors
may conclude that a company encumbered with a substantial amount of liabilities will consequently incur a
significant amount of interest expense, which could negatively affect the bottom line.
Another stakeholder with an interest in a company’s liabilities would be the Bureau of Internal Revenue (BIR). Under the
Tax Code, documentary stamp tax (DST) is imposed on every original issuance of debt instruments, including loan
agreements, promissory notes, and other instruments representing borrowing and lending transactions, at the rate of P1
on each P200, or fractional part (effectively 0.5%), of the issue price of any such debt instruments.
In a landmark Supreme Court (SC) case decided en banc, the high court held that instructional letters, as well as the
journal and cash vouchers evidencing advances extended by a company to its affiliates, qualify as loan agreements
subject to 0.5% DST. Since the promulgation of the SC decision in 2011, there have been a number of tax cases that
touch upon this particular issue as discussed below.
DST ON ADVANCES TO/FROM A PHILIPPINE BRANCH
In a 2014 Court of Tax Appeals (CTA) case involving a Philippine branch, the BIR assessed deficiency DST on the branch’s
cash advances booked under its “due to/from accounts” in 2007, including advances to/from its head office, parent
company, and affiliates. In its decision, the CTA agreed with the BIR’s assessment of deficiency DST. The tax court held
that the general rule that a foreign corporation is the same juridical entity as its branch office in the Philippines cannot
apply to the taxpayer’s case on the basis that when a foreign corporation transacts business in the Philippines
independently of its branch, the principal-agent relationship is set aside.
On appeal, the CTA sitting en banc decided in 2015 to affirm the tax court’s earlier decision, adding that the SC decision
applies retrospectively (i.e., from the effectivity of the related DST provisions), not just from its promulgation in 2011.
DST ON ADVANCES FROM STOCKHOLDERS
In 2015, the CTA sustained the assessment of deficiency DST on advances from stockholders for the tax year 2008. Citing
the definition of “affiliates” from the Philippine Accounting Standards, the CTA held that a stockholder is within the scope
of a related party and therefore, the 2011 SC decision involving affiliates would apply. Hence, advances to or from
shareholders shall be subject to DST.
DST ON ADVANCES FROM AFFILIATES AS DISCLOSED IN THE NOTES TO THE FS
Last year, a CTA decision upheld the deficiency DST assessment for the tax year 2009 on advances from affiliates on the
basis of disclosures presented in the Notes to the FS. According to the CTA, since the transaction is clearly shown and
declared in the Notes, its existence cannot be denied. Furthermore, the tax court noted that it would be relatively easy for
any taxpayer to circumvent the law on DST by simply hiding the corresponding and/or supporting documents if these are
required to be presented to prove the existence of the taxable transaction.
DST NOT APPLICABLE TO ‘FUNDS RECEIVED FROM HOME OFFICE
Interestingly, a more recent CTA case decided just last month held that “funds received from home office” by a Philippine
branch are not subject to the 0.5% DST on debt instruments. While the CTA took note of its previous decision in the 2014
case mentioned earlier, the tax court found the said case inapplicable considering that no cash and journal vouchers
evidencing intercompany advances and no intercompany trade payables and receivables that can be considered debt
instruments were mentioned in this case. Additionally, the assessed deficiency DST in the 2014 case was based on
accounts such as “due from head office and parent company” and “due to parent company and affiliates,” which meant
that not only was the head office involved in the said case but also the parent company and affiliates, which have separate
legal personalities.
By contrast, only the “due to home office” account is involved in this 2017 CTA case. As such, the tax court concluded that
neither the home office nor the Philippine branch in this particular case transacted business with another entity. The CTA
also noted that the “due to home office” account of this Philippine branch appears in the “Equity” section of the balance
sheet and not as part of “Liabilities.” The foregoing considered, the CTA deemed the transactions recorded under “due to
home office” as simple internal dealings within the same legal entity and therefore not subject to the 0.5% DST.
In view of the cases cited above, the following are factors that may be considered in determining whether the 0.5% DST
would apply on advances between affiliates:
• The existence of the advances must be established (e.g., evidenced by inter-office memos, cash and journal vouchers,
or disclosures in the Notes to the FS).
• Advances qualify as loan agreements or debt instruments if they represent borrowing and lending transactions, and
accordingly recorded as intercompany payables or receivables, not as equity accounts.
P a g e | 30
• The parties involved fall within the definition of ‘related parties’ or ‘affiliates.’
• The affiliates involved are treated as separate and distinct taxpayers. In the case of a Philippine branch of a foreign
corporation, the DST would apply when a foreign corporation transacts business in the Philippines independently of its
branch. On the contrary, internal dealings within the same legal entity would not trigger DST.
Intercompany and intracompany advances are common transactions among both multinational and local companies. That
said, we can expect the BIR to continue scrutinizing such transactions in part due to its pursuit of assessing deficiency DST
on these advances. While the DST imposed is a relatively small percentage of the transaction amount, there are instances
when these advances amount to millions (or even billions) of pesos which could translate to a substantial DST impact.
Considering that a seemingly straightforward transaction could have significant tax consequences, it is as important as
ever to stay up-to-date with recent tax-related developments.
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Documentary stamp tax (DST)
DST is payable at varying rates on various documents and transactions. The following table contains selected examples as
revised under the TRAIN law:
Taxable document/transaction (tax base) DST rate
PHP 2.00 for every PHP 200 of the par value or actual
Original issue of shares
consideration for no-par shares
Sale, barter, or exchange of shares of stock listed

Exempt
and traded through the local stock exchange
Other sales agreement, agreement to sell,

PHP 1.50 for every PHP 200 of the par value or 50% of the
memoranda of sales, delivery or transfer of shares or
DST paid upon original issuance of no-par shares
certificates of stock
Certificate of profits, interest in property or

PHP 1.00 for every PHP 200 of the face value
accumulations
Non-exempt debt instruments PHP 1.50 for every PHP 200 of the issue price.
Bank check, draft, certificate of deposit not bearing

PHP 3.00 for each instrument
interest, other instruments
PHP 15.00 for each PHP 1,000 of consideration/value or

Deed of sale, conveyance of real property
fractional part thereof
Bills of exchange or drafts PHP 0.60 on each PHP 200 of the issue price
Acceptance of bills of exchange and others PHP 0.60 on each PHP 200 of the face value
Foreign bills of exchange and letters of credit PHP 0.60 on each PHP 200 of the face value
PHP 1.00 on each PHP 200 of premium or instalment

Policies of annuities or other instruments
payment
PHP 0.40 on each PHP 200 of the premium or contribution

Pre-need plans
collected
Certificates PHP 30.00 per certificate
PHP 30.00 per warehouse receipt (valued at PHP 200 or

Warehouse receipts
more)
Jai-alai, horse race tickets, lotto, or other authorised

PHP 0.20 on every PHP 1.00 cost of the ticket
number games
P a g e | 32
Exempt if bill/receipts not exceeding PHP 100; PHP 2.00 for
Bills of lading or receipts bill/receipts not exceeding PHP 1,000; or PHP 20.00 for
bill/receipts exceeding PHP 1,000
Proxies PHP 30.00 on each proxy of voting
PHP 10.00 on each power of attorney; except acts

Powers of attorney
connected with claims due to/from the government
PHP 6.00 for the first PHP 2,000 + PHP 2.00 for every PHP
Leases and other hiring agreements
1,000 thereafter
PHP 40.00 for the first PHP 5,000 + PHP 20.00 on every
Mortgages, pledges, and deeds of trust
PHP 5,000 thereafter
DST on life insurance policies
Life insurance policy (PHP) DST (PHP)
Does not exceed 100,000 Exempt
Exceeds 100,000 but does not exceed 300,000 20.00
Exceeds 750,000 but does not exceed 1,000,000 150.00
Exceeds 1,000,000 200.00
DST on charter party and similar instruments
Registered tonnage DST rate
PHP 1,000 + an additional tax of PHP 100 for each

Does not exceed 1,000 tons month or fraction of a month in excess of 6
months

Exceeds 1,000 tons and does not exceed 10,000 tons month or fraction of a month in excess of 6
months

Exceeds 10,000 tons month or fraction of a month in excess of 6
months
P a g e | 33
Summary
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 Forms
BIR Form 2000 (Documentary Stamp Tax Declaration Return);
BIR Form 2000-OT Documentary Stamp Tax Declaration Return (One- Time Transactions)
Documentary Requirements
Mandatory
1. Photocopy of the document to which the documentary stamp shall be affixed;

2. Proof of exemption under special laws, if applicable;
3. Proof of payment of documentary stamp tax paid upon the original issue of the stock, if applicable.
Tax Rates
Tax Document Taxable Unit Tax Due Per Unit % of Taxable Base
Code Unit
Section
174 Original Issue P200.00 or fraction thereof 2.00 1% Par value of shares of
of Shares of stocks
Stock with
par value
Original Issue P200.00 or fraction thereof 2.00 1% Actual consideration for the
of Shares of issuance of shares of stocks
Stock without
par value
Stock P200.00 or fraction thereof

Dividend 2.00 1% Actual value represented by
each share
175 Sales, P200.00 or fraction 1.50 0.75% Par value of such stock
Agreements thereof
to Sell,
Memoranda
of Sales,
Deliveries
or Transfer of
Shares or
Certificates of
Stock
Stock without 50% DST paid upon the original

par value issuance of said stock.
176 Bonds, P200.00 or fraction thereof .75 .375% Par value of such bonds,
Debentures, debentures, Certificate of
Certificate of Stock or Indebtedness
Stock or
Indebtedness
issued in
P a g e | 34
foreign
Countries
177 Certificate of P200.00 or fraction thereof 1.00 .5% Face value of such
Profits or certificates / memorandum
Interest in
Property or
Accumulation
178 Bank Checks, On each Document 3.00
Drafts,
Certificate of
Deposit not
bearing
interest and
other
Instruments
179 All Debt P200.00 or fraction thereof 1.50 .75% Issue price of any such
Instruments debt instruments or a
fraction of 365 days for
instrument with term of
less than 1 year
180 All Bills of P200.00 or fraction thereof .60 .3% Face value of any such bill
Exchange or of exchange or draft
Drafts
181 Acceptance of P200.00 or fraction thereof .60 .3% Face value of such bill of
Bills of exchange or order or the
Exchange or Philippine equivalent of
order for the such value, if expressed in
payment of foreign currency
money
purporting to
be drawn in a
foreign
country but
payable in
the
Philippines
182 Foreign Bills P200.00 or fraction thereof .60 .3% Face value of such bill of
of Exchange exchange or letter of credit
and Letters of or the Philippine equivalent
Credit of such value, if expressed
in foreign currency
183 Life If the amount of insurance exempt Amount of Insurance
Insurance does not exceed
Policies P100,000.00
If the amount of insurance 20.00 Amount of Insurance

exceeds P100,000.00 but
does not exceed
P300,000.00

does not exceed
P500,000.00

does not exceed
P750,000.00

P a g e | 35
does not exceed
P1,000,000.00

exceeds P1,000,000.00
184 Policies Of P4.00 premium or fraction .50 12.5% Premium charged
Insurance thereof
upon
Property
185 Fidelity Bonds P4.00 premium or fraction .50 12.5% Premium charged
and other thereof
Insurance
Policies
186 Policies of P200.00 or fraction thereof 1.00 .5% Premium or installment
Annuities or payment or contract price
other collected
instruments
Premium or contribution
P200.00 or fraction thereof collected
.40 .20%
Pre-Need
Plans
187 Indemnity P4.00 or fraction thereof .30 7.5% Premium charged
Bonds
188 Certificates of Each Certificate 30.00
Damage or
otherwise
and
Certificate or
document
issued by any
customs
officers,
marine
surveyor,
notary public
and
certificate
required by
law or by
rules and
regulations of
a public office
189 Warehouse Each Receipt 30.00
Receipts
(except if
value does
not exceed
P200.00)
190 Jai-alai, P1.00 and below cost of .20 20% Cost of the ticket
Horse Race ticket
Tickets, lotto Cost of the ticket
or Other
Authorized Additional P0.20 on every
Number P1.00 or fraction thereof if
Games cost of ticket exceeds P1.00
191 Bills of Lading If the value of such goods 2.00 Value of such goods
or Receipts exceeds P100.00 and does
(except not exceed P1,000.00
P a g e | 36
charter
party) If the value exceeds 20.00 Value of such goods
P1,000.00
Freight tickets covering Exempt

goods, merchandise or
effects carried as
accompanied baggage of
passengers on land and
water carriers primarily
engaged in the
transportation of passengers
192 Proxies Each proxy 30.00
(except
proxies
issued
affecting the
affairs of
associations
or
corporations,
organized for
religious,
charitable or
literary
purposes)
193 Powers of Each Document 10.00
Attorney
(except acts
connected
with the
collection of
claims due
from or
accruing to
the
Government
of the
Republic of
the
Philippines,
or the
government
of any
province, city
or
Municipality)
194 Leases and First 2,000 or fractional part 6.00 .3%
other Hiring thereof
agreements
or For every P1,000 or
memorandum fractional part thereof in 2.00 .2%
or contract excess of the first P2,000
for hire, use for each year of the term of
or rent of any the said contract or
lands or agreement
tenements or
portions
thereof
195 Mortgage or First 5,000 40.00 .8% Amount Secured
Pledge of
lands, estate, Amount Secured
or property On each P5,000 or fractional 20.00 .4%
and Deeds of part thereof in excess of
P a g e | 37
Trust 5,000
196 Deed of Sale, First 1,000 15.00 1.5% Consideration or Fair
Conveyances, Market Value, whichever is
Donations of higher (if government is a
Real party, basis shall be the
Property consideration)
(except
grants,
patents or
original Consideration or Fair
certificate of Market Value, whichever is
adjudication For each additional P1,000 or 15.00 1.5% higher (if government is a
issued by the fractional part thereof in party, basis shall be the
government) excess of P1,000 consideration)
197 Charter Charter parties and similar
parties and instruments if gross tonnage
Similar of the ship, vessel or
Instruments steamer is:
1,000 tons and below

1st 6 months P1,000.00 Registered gross tonnage
In excess + P 100.00
1st 6 months P2,000.00

1,001 to 10,000 tons In excess + P200.00 Registered gross tonnage
Over 10,000 tons 1st 6 months P3,000 Registered gross tonnage

In excess + 300
198 Stamp Tax on At the same rate as that
Assignments imposed on the original
and Renewals instrument.
or
Continuance
of Certain
Instruments
Procedures
 BIR FORM 2000 - (DOCUMENTARY STAMP TAX DECLARATION RETURN)
Who Shall File
The return shall be filed in triplicate by the following:
1. In the case of constructive affixture of documentary stamps, by the person 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;
2. In the case of Electronic Documentary Stamp Tax (eDST) System user, by the taxpayers belonging to the industries
mandated to use the web-based eDST System in the payment/remittance of DST liabilities and the affixture of the
prescribed documentary stamp on taxable documents and taxpayers who, at their option, choose to pay the DST liabilities
thru the eDST System pursuant to Revenue Regulations (RR) No. 7-2009; and
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3. By a revenue collection agent for remittance of sold loose documentary stamps.
Whenever one party to the taxable document enjoys exemption from the tax herein imposed, the other party thereto who
is not exempt shall be the one directly liable for the tax.
When and Where to File
The return shall be filed within five (5) days after the close of the month when the taxable document was made, signed,
issued, accepted or transferred or upon remittance by revenue collection agents of collection from the sale of loose
documentary stamps.
The return shall be filed with the Authorized Agent Bank (AAB) within the territorial jurisdiction of the Revenue District
Office where the residence or place of business of the taxpayer is located or where the collection agent is assigned. In
places where there are no AABs, the return shall be filed directly with the Revenue Collection Officer (RCO) within the
Revenue District Office which has jurisdiction over the residence or place of business of the taxpayer or where the
collection agent is assigned.
When and Where to Pay
Upon filing of this return, the total amount payable shall be paid to the AAB where the return is filed within five (5) days
after the close of the month when the taxable document was made. In places where there are no AABs, the tax shall be
paid with the Revenue Collection Officer who shall issue an Electronic Revenue Official Receipt (eROR) therefor.
When the return is filed with an AAB, taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank
teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall
stamp mark the word “Received” on the return and also machine validate the return as proof of filing the return and
payment of the tax by the taxpayer, respectively. The machine validation shall reflect the date of payment, amount paid
and transactions code, the name of the bank, branch code, teller’s code and teller’s initial. Bank debit memo number and
date should be indicated in the return for taxpayers paying under the bank debit system.
For eDST System User
Prior to the enrollment in the eDST System, taxpayers availing thereof, whether on the mandatory or optional basis, shall
be duly enrolled under the BIR Electronic Filing and Payment System (eFPS). In paying the DST liabilities, BIR Form No.
2000 shall be filed and the amount due thereon shall be paid thru the eFPS for taxpayers and PhilPass Facility of the
Bangko Sentral ng Pilipinas for banks (AABs and non-AABs).
For eFPS Taxpayer
The deadline for electronically filing and paying the taxes due thereon shall be in accordance with the provisions of
existing applicable revenue issuances.
 BIR FORM 2000-OT DOCUMENTARY STAMP TAX DECLARATION RETURN (ONE-TIME TRANSACTIONS)
Who Shall File
The return shall be filed in triplicate by the person making, signing, issuing, accepting or transferring the document or
facility evidencing transaction pertaining to the following:
1. Sales, or agreements to sell, or memoranda of sale, or deliveries, or transfer of shares or certificates of stock in any
association, company, or corporation, or transfer of such securities by assignment in blank, or by delivery, or by any
paper or agreement, or memorandum or other evidences of transfer or sale whether entitling the holder in any manner to
the benefit of such stock, or to secure the future payment of money, or for the future transfer of any stock, there shall be
P a g e | 39
collected a documentary stamp tax of One peso and fifty centavos (P1.50) on each Two hundred pesos (P200) or
fractional part thereof, of the par value of such due-bill, certificate of obligation or stock; Provided, That only one tax shall
be collected on each sale or transfer of stock from one person to another, regardless of whether or not a certificate of
stock is issued, indorsed, or delivered in pursuance of such sale or transfer: and Provided, further, That in the case of
stock without par value the amount of documentary stamp tax herein prescribed shall be equivalent to fifty percent (50%)
of the documentary stamp tax paid upon the original issue of said stock.
2. Conveyances, donations, deeds, instruments, or writings, other than grants, patents or original certificates of
adjudication issued by the Government, whereby any land, tenement, or other realty sold shall be granted, assigned,
transferred, donated or otherwise conveyed to the purchaser, or purchasers, or to any other person or persons designated
by such purchaser or purchasers or donee, there shall be collected a documentary stamp tax, at the rates herein below
prescribed, based on the consideration contracted to be paid for such realty or on its fair market value determined in
accordance with Section 6(E) of this Code, whichever is higher: Provided, That when one of the contracting parties is the
Government, the tax herein imposed shall be based on the actual consideration.
Whenever one party to the taxable document enjoys exemption from the tax herein imposed, the other party
thereto who is not exempt shall be the one directly liable for the tax.
When and Where to File and Pay
The return shall be filed and the tax paid within five (5) days after the close of the month when the taxable document was
made, signed, issued, accepted or transferred.
The return shall be filed with and the tax paid to the Authorized Agent Bank (AAB) within the territorial jurisdiction of
Revenue District Office (RDO) where the seller/transferor/donor is required to be registered or where the property is
located in case of sale of real property.
When the return is filed with an AAB, taxpayer must accomplish and submit BIR-prescribed deposit slip, which the bank
teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax return shall
stamp mark the word “Received” on the return and also machine validate the return as proof of filing the return and
payment of the tax by the taxpayer, respectively.
The machine validation shall reflect the date of payment, amount paid and transactions code, the name of the bank,
branch code, teller’s code and teller’s initial. Bank debit memo number and date should be indicated in the return for
taxpayers paying under the bank debit system.
Payments may also be made thru the epayment channels of AABs or online facility, credit/debit/prepaid cards, and mobile
payments.
Payments amounting to twenty thousand pesos (P 20,000.00) and below shall be paid in cash while payments above
twenty thousand pesos (P 20,000.00) shall be made through Manager’s Check or Cashier’s Check to the Revenue
Collection Officer of the RDO concerned.
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; upon remittance by Collection Agents of collection from sale of loose stamps. The Documentary
Stamp Tax shall be paid upon filing of the return.
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Frequently Asked Questions
1) What are the documents/ papers not subject to Documentary Stamp Tax?
Under Section 9 of Revenue Regulations No. 13-2004, the following documents and papers are not subject to DST:
 Policies of insurance or annuities made or granted by a fraternal or beneficiary society, order, association or
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
 Borrowing and lending of securities executed under the Securities Borrowing and Lending Program of a registered
exchange, or in accordance with regulations prescribed by the appropriate regulatory authority: Provided,
however, That any borrowing or lending of securities agreement as contemplated hereof shall be duly covered by
a master securities borrowing and lending agreement acceptable to the appropriate regulatory authority, and
which agreement is duly registered and approved by the Bureau of Internal Revenue (BIR)
 Loan agreements or promissory notes, the aggregate of which does not exceed Two hundred fifty thousand pesos
(P250,000), or any such amount as may be determined by the Secretary of Finance, executed by an individual
for his purchase on installment for his personal use or that of his family and not for business or resale, barter or
hire of a house, lot, motor vehicle, appliance or furniture: Provided, however, That the amount to be set by the
the current amount and shall remain in force at least for three (3) years
 Sale, barter or exchange of shares of stock listed and traded through the local stock exchange (R.A 9648)
 Assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or continuance of any
date or remaining period of coverage from that of the original instrument.
 Fixed income and other securities traded in the secondary market or through an exchange.
 Derivatives: Provided, that for purposes of this exemption, repurchase agreements and reverse repurchase
agreements shall be treated similarly as derivatives
 Inter-branch or interdepartmental advances within the same legal entity
 All forbearances arising from sales or service contracts including credit card and trade receivables: Provided, That
the exemption be limited to those executed by the seller or service provider itself.
 Bank deposit accounts without a fixed term or maturity
 All contracts, deeds, documents and transactions related to the conduct of business of the Bangko Sentral ng
Pilipinas
 Transfer of property pursuant to Section 40(C)(2) of the National Internal Revenue Code of 1997, as amended
 Inter-bank call loans with maturity of not more than seven (7) days to cover deficiency in reserves against
deposit liabilities, including those between or among banks and quasi-banks
Further, Section 20 of RR No. 4-2018 exempts from DST the following donations or gifts that are exempt from donor’s
P a g e | 41
tax:
a. Gifts Made by a Resident:
 Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not
conducted for profit, or to any political subdivision of the said Government; and
 Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution,
accredited nongovernment organization, trust or philanthropic organization or research institution or
organization: Provided, however, that not more than thirty percent (30%) of said gifts shall be used by such
donee for administration purposes. For the purpose of this exemption, a 'non-profit educational and/or charitable
corporation, institution, accredited nongovernment organization, trust or philanthropic organization and/or
research institution or organization' is a school, college or university and/or charitable corporation, accredited
nongovernment organization, trust or philanthropic organization and/or research institution or organization,
incorporated as a non-stock entity, paying no dividends, governed by trustees who receive no compensation, and
devoting all its income, whether students' fees or gifts, donation, subsidies or other forms of philanthropy, to the
accomplishment and promotion of the purposes enumerated in its Articles of Incorporation.
b. Gifts Made by a Non-resident not a Citizen of the Philippines:
 Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not
conducted for profit, or to any political subdivision of the said Government; and
 Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution,
accredited nongovernment organization, trust or philanthropic organization or research institution or
organization: Provided, however, that not more than thirty percent (30%) of said gifts shall be used by such
donee for administration purposes.
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
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
P a g e | 42
 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
 Borrowing and lending of securities executed under the Securities Borrowing and Lending Program of a registered
exchange, or in accordance with regulations prescribed by the appropriate regulatory authority: Provided,
however, That any borrowing or lending of securities agreement as contemplated hereof shall be duly covered by
a master securities borrowing and lending agreement acceptable to the appropriate regulatory authority, and
which agreement is duly registered and approved by the Bureau of Internal Revenue (BIR)
 Loan agreements or promissory notes, the aggregate of which does not exceed Two hundred fifty thousand pesos
(P250,000), or any such amount as may be determined by the Secretary of Finance, executed by an individual
for his purchase on installment for his personal use or that of his family and not for business or resale, barter or
hire of a house, lot, motor vehicle, appliance or furniture: Provided, however, That the amount to be set by the
the current amount and shall remain in force at least for three (3) years
 Sale, barter or exchange of shares of stock listed and traded through the local stock exchange (R.A 9648)
 Assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or continuance of any
date or remaining period of coverage from that of the original instrument.
 Fixed income and other securities traded in the secondary market or through an exchange.
 Derivatives: Provided, That for purposes of this exemption, repurchase agreements and reverse repurchase
agreements shall be treated similarly as derivatives
 Interbranch or interdepartmental advances within the same legal entity
 All forebearances arising from sales or service contracts including credit card and trade receivables: Provided,
That the exemption be limited to those executed by the seller or service provider itself.
 Bank deposit accounts without a fixed term or maturity
 All contracts, deeds, documents and transactions related to the conduct of business of the Bangko Sentral ng
Pilipinas
 Transfer of property pursuant to Section 40(C)(2) of the National Internal Revenue Code of 1997, as amended
 Interbank call loans with maturity of not more than seven (7) days to cover deficiency in reserves against deposit
liabilities, including those between or among banks and quasi-banks (sec. 9, RR No. 13-2004)
4) What are the implications of failure to stamp taxable documents?
An instrument, document, or paper which is required by law to be stamped and which has been signed, issued, accepted
or transferred without being duly stamped, shall not be recorded, nor shall it or any copy thereof or any record of transfer
of the same be admitted or used in evidence in any court until the requisite stamp or stamps shall have been affixed
thereto and cancelled.
No notary public or other officer authorized to administer oaths shall add his jurat or acknowledgment to any document
subject to documentary stamp tax unless the proper documentary stamps are affixed thereto and cancelled.
5) What is Electronic Documentary Stamp Tax (eDST) System?
The eDST is a web-based application created for taxpayers and the BIR that is capable of affixing a secured documentary
stamp on the taxable documents as defined under the appropriate provisions under Title VII of the National Internal
Revenue Code of 1997, as amended, thru the use of a computer unit, any laser printer with at least 1200 dpi resolution,
and Internet Explorer 7.0 It is also capable of providing a 3-layer watermark on stamps for added security. (Sec. 5 (1), RR
No. 7-2009)
6) Is DST Law applicable on Electronic Documents?
The DST rates as imposed under the Code, as amended by R.A. 9243 and further amended by R.A. 10963 shall be
applicable on all documents not otherwise expressly exempted by the said law, notwithstanding the fact that they are in
electronic form. As provided for by R.A. 8792, otherwise known as the Electronic Commerce Act, electronic documents are
the functional equivalent of a written document under existing laws, and the issuance thereof is therefore tantamount to
P a g e | 43
the issuance of a written document, and therefore subject to DST. (Sec. 10, RR No. 13-2004 as amended by RR No. 4-
2018)
7) What are the inclusions of a debt instrument?
“Debt Instrument” shall mean instruments representing borrowing and lending transaction including but not limited to:
 debentures
 certificates of indebtedness
 due bills
 bonds
 loan agreements, including those signed abroad wherein the object of the contract is located or used in the
Philippines
 instruments and securities issued by the government or any of its instrumentalities
 deposit substitute debt instruments
 certificates or other evidences of deposits that are drawing instrument significantly higher than the regular
savings deposit taking into consideration the size of the deposit and the risks involved
 certificates or other evidences of deposits that are drawing interest and having a specific maturity date
 promissory notes, whether negotiable or non-negotiable, except bank notes issued for circulation (Sec. 5, RR No.
13-2004)
8) Is any document, transaction or arrangement entered into under Financial Lease subject to Documentary Stamp Tax?
Financial lease is akin to a debt rather than a lease. A nature of an obligation than a lease of personal property. The mere
act of extending credit is already a means of facilitating an obligation or advancing in behalf of the lessee certain property
in lieu of cash in exchange for a definitive amortization to be paid to the lessor with profit margin included. Section 179 of
the NIRC, as amended, covers all debt instruments. Therefore, being a nature of an obligation, any document, transaction
or arrangement entered into under financial lease is subject to DST under such Section of the NIRC, as amended. (RMC
No. 46-2014)
PROBLEMS
Problem 1: (Shares of stocks not listed in the stock exchange)
Case 1: Par value
 Par value – PV/P200 x P1.50 or fractional part thereof
Mr. Uy sold in 20x9 his unlisted shares of stocks for P200,000. The 1,000 shares were acquired at par value P100.
Required:
1. Compute the capital gains tax
2. Compute the DST
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Selling price 200,000
C ost (100,000)
Gain 100,000
Net capital gain 100,000

Rate 15%
Capital gains tax 15,000 (Seller is liable if no agreement)
DST Par value X P1.5

P200
100,000 x P1.5
P200
DST 750 (buyer is liable if no agreement)
Case 2: No Par value
 No Par value – 50% of the DST paid upon the original issue of stocks
Mr. Uy sold in 20x9 his unlisted shares of stock for P200,000. The no par 1,000 shares were subscribed and paid at
P100,000. The DST paid on subscription is P1,000.
Required:
2. Compute the DST
Selling price 200,000

Cost (100,000)
Gain 100,000
Net capital gain 100,000

Rate 15%
Capital gains tax 15,000 (Seller is liable if no agreement)
DST No Par value X P2

P200
100,000 X P2
P200
DST 1,000 DST on subscription
DST - DST on subscription 1,000

Rate 50%
DST payable 500 (buyer is liable if no agreement)
Problem 2: (Sale of real property classified as capital or ordinary asset)
Mr. X, a resident citizen, sold a house and lot classified as capital asset:
Other Information:
Selling price P5,000,000
Zonal value of land 3,000,000
Assessed value – land 2,000,000
Assessed value – house 3,000,000
Required:
P a g e | 45
2. Compute the DST
Gross selling price 5,000,000

Zonal (house) 3,000,000 (copy from assessor)
Assessed value - land 2,000,000
Assessed value - house 3,000,000
Summary (get the highest and multiply by 6%)
GSP 5,000,000
Zonal value 6,000,000
Assessed value 5,000,000
Rates: C GT is 6% whichever is higher

DST is Higher of the GSP, ZV or AV computed at P15 for ever P1,000. Fraction
of P1,000 is equal to P15
Answer:
CGT - P360,000 (6,000,000 x 6%)
DST - P90,000 (6,000,000 x P15/P1,000)
C GT - seller is liable if no agreement

DST- buyer is liable if no agreement
Problem 3: (Donation of Real Property) (TRAIN law)
Mr. X donated a new house and lot to his son who is about to get married. The following are made available:
Zonal value of land P3,000,000
Assessed value – land 2,000,000
Assessed value – house 3,000,000
Required:
1. Compute the donor’s tax
2. Compute the DST
Solution:
Zonal (house) 3,000,000 (C opy from Assessor)
Assessed value - land 2,000,000
Assessed value - house 3,000,000
Summary:
Zonal value 6,000,000
Assessed value 5,000,000
Higher: Gross gift (Zonal value) 6,000,000

Less: (250,000)
5,750,000
Rate 6%
Donor's tax 345,000
Gross gift (Zonal value) 6,000,000

Rate 15/1,000 (1.5% if no fraction)
Problem 4: (Subscription of shares of stocks)
P a g e | 46
 P2/P200 or 1%
A, B, C, D and E established XYZ Corporation. The Securities and Exchange Commission (SEC) issued the Certificate of
Registration on March 31, 20x9. XYZ Corp. has authorized capital stock of P1,000,000 divided into 10,000 shares of
stocks. 25% of the capital stock has been subscribed and paid by the stockholders.
Required:
1. Compute the DST Due.
Solution
Subscribed capital stock 250,000

Rate 2/200
DST Pay able 2,500
Problem 5: (All Debt Instrument)
 P1.50/P200
 Note: If the debt is one year or less, pro-rate the DST using 365 days.
A. ABC Corporation borrowed P1,000,000 from the bank in July 1, 20x8.

B. Mr. X obtained a loan from a corporation in the amount of P2,000,000.
C. XYZ Corporation has made advances to affiliate ABC Corporation of P10,000,000
Required: Compute the documentary stamp tax.
A P3,781 (P1M x 1.5/200 x 184/365)

B P15,000 (P2M x 1.5/200)
C P75,000 (P10M x 1.5/200)
Problem 6: (Mortgages)
 Amount does not exceed P5,000 –P40

 On each P5,000 or fraction thereof in excess of P5,000, an additional tax of P20
A. Mortgage P5,000
B. Mortgaged of P1,000,000
Required: Compute the documentary stamp tax
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DOCUMENTARY STAMP TAX

DOCUMENTARY STAMP TAX

Documents subject to DST

If one of the contracting

Persons making the DST is a tax on certain transactions. It is imposed against

Documentary stamp tax 1. Documentary stamp tax

2. Documentary stamp tax

Mode of payment The documentary stamp tax may be paid by

Who shall file the

Attachment to the 1. Photocopy of the document

It will not, however, be accepted for recording in the Registry of Deeds.

List of 1. Real properties

Effects of failure to stamp taxable documents

Documents subject to tax

1. Bonds, debentures, and certificate of indebtedness

SEC 199. Documents and papers not subject to Stamp Tax. –

Documentary Stamp Tax (DST)

Policies of insurance upon property P0.50 / P4.00

Bills of lading or receipts P100 to P1,000 P2.00

Proxies for voting at any election P30.00/ issued proxy

Mortgages, pledges and deeds of trust 1st P5,000 P40.00

On assignments and renewals of certain instruments Same rate as original instrument

1,001 to 10,000 tons 1st 6 months P2,000

Over 10,000 tons 1st 6 months P3,000

Basic principles in DST imposition

Example 2: Pilipinas Company Finance accepted a bill of exchange from abroad

No. Documentary stamp tax is a tax on the privilege of conducting a particular

STAMP TAXES ON REAL PROPERTIES

Stamp Taxes on Real Properties

Transacting parties Documentary stamp tax basis

Summary of DST rules on real property

Required: Compute the Documentary Stamp Tax.

The fair value of the commercial building shall be:

Fair vlaue of land (zonal higher) 4,000,000

Fair value of real property 12,000,000

The documentary stamp tax shall be computed as:

Fair value 8,000,000

Fair value 12,000,000

Fair value 240,000

Fair value 4,000,000

STAMP TAXES ON SHARES OF STOCK

Required: Compute the DST.

Total subscription (80,000 x P50) 4,000,000

Required: Compute the DST.

Sept. subscription (40,000 x P50) 2,000,000

Required: Compute the DST.

Value consideration 800,000

Required: Compute the DST.

Required: Compute the DST.

Original issue price (10,000 x P120) 1,200,000

Required: Is Company A subject to DST?

Value of stock dividend 10,000,000

Shareholder’s assessments without the issuance of stocks is not subject to documentary

STAMP TAX ON CERTIFICATES OF PROFITS OR INTEREST IN PROPERTY OR ACCUMULATIONS

Stamp tax on certificates of profits or interest in property or accumulations

Required: Compute the DST.

The documentary stamp tax shall be P1,000,000 x P1/P200 = P500

Required: Compute the DST.

STAMP TAX ON DEBT INSTRUMENTS