DOCUMENTARY STAMP TAX

1 149 Guide to Philippine TaxesEO 22 Chapter VI DOCUMENTARY STAMP TAXThe DOCUMENTARY STAMP tax is an excise tax levied on documents,instruments, loan agreements and papers evidencing the acceptance, assignment,sale or transfer of an obligation, rights, or property incident thereto. The amountof tax is either fixed or based on the par or face value of the document tax is paid by the person making, signing, issuing, accepting ortransferring the documents. However, whenever one party to the taxabledocument enjoys exemption from the tax, the other party thereto who is notexempt shall be the one directly liable for the as otherwise provided by rules and regulations, the tax returnshall be filed and the tax due shall be paid at the same time within 10 days afterthe close of the month when the taxable document was signed, issued, acceptedor transferred.

2 In lieu of the foregoing, the tax may be paid either throughpurchase of DST STAMP and actual affixture, or by imprinting a secured stampon the taxable document through the web-based Electronic DOCUMENTARY StampTax (eDST) to STAMP a taxable document shall not invalidate the , it shall not be recorded ( in the Registry of Deeds) or admitted orused as evidence in any court until the requisite STAMP is affixed thereto andcancelled. Furthermore, no notary or other officer authorized to administeroaths shall add his jurat or acknowledgment to the document unless the properdocumentary STAMP is affixed thereto and VI DOCUMENTARY STAMP TaxGuide to Philippine TaxesThe DOCUMENTARY STAMP taxes payable on documents or instrumentsare as follows: Documents/Instruments Tax Rate 1.

3 Original issue of shares of stock (Sec. 174) per PhP200, or fraction thereof, of the par value 2. Sales, agreements to sell, memoranda of per PhP200,sales, deliveries or transfer of shares or or fraction thereof, ofcertificates of stock (Sec. 175) the par value 3. Bonds, debentures, certificates of stocks per PhP200,or indebtedness issued in foreign countries or fraction thereof, of(Sec. 176) the face/par value 4. Certificates of profits or interest in property per PhP200, or accumulations (Sec.)

4 177) or fraction thereof, ofthe face value 5. Bank checks, drafts, certificates of deposit per check,not bearing interest and other instruments draft or certificate(Sec. 178) 6. Debt instruments313 (Sec. 179) per PhP200, or fraction thereof, of the issue price313 Debt instrument shall mean instruments representing borrowing and lendingtransactions including but not limited to debentures, certificates of indebtedness, duebills, bonds, loan agreements, including those signed abroad wherein the object ofcontract is located or used in the Philippines, instruments and securities issued by thegovernment or any of its instrumentalities.

5 Deposit substitute debt instruments,certificates or other evidences of deposits that are either drawing interest significantlyhigher than the regular savings deposit taking into consideration the size of the depositand the risks involved or drawing interest and having a specific maturity date, orders forpayment of any sum of money otherwise than at sight or on demand, promissory notes,whether negotiable or non-negotiable, except bank notes issued for VI DOCUMENTARY STAMP TaxGuide to Philippine Taxes Documents/Instruments Tax Rate 7. Bills of exchange or drafts (Sec.)

6 180) per PhP200, or fraction thereof, ofthe face value 8. Acceptance of bills of exchange and per PhP200,others (Sec. 181) or fraction thereof, of the face value 9. Foreign bills of exchange and letters of per PhP200, credit (Sec. 182) or fraction thereof, of the face value10. Life Insurance Policies (Sec. 183)314a. If the amount of insurance does not exemptexceed PhP100, If the amount of insurance exceeds , but does not exceedPhP300, If the amount of insurance exceeds , but does not exceedPhP500, debt instruments with terms of less than one (1) year, the DOCUMENTARY stamptax to be collected shall be of a proportional amount in accordance with the ratio of itsterm in number of days to three hundred sixty-five (365)

7 RA 10001, An Act Reducing the Taxes on Life Insurance Policies, AmendingFor This Purpose Sections 123 and 183 of the National Internal Revenue Code of 1997,As Amended , signed into law on February 23, years after the effectivity of RA 10001, all policies of insurance or otherinstruments by whatever name the same shall be called whereby any insurance shall bemade upon any life or lives shall be exempt from the DOCUMENTARY STAMP VI DOCUMENTARY STAMP TaxGuide to Philippine Taxes Documents/Instruments Tax Rated. If the amount of insurance exceeds , but does not exceedPhP750, If the amount of insurance exceeds , but does not exceedPhP1,000, If the amount of insurance exceeds ,000, Policies of insurance upon property on each (Sec.)

8 184) , or fraction thereof, of the amount of premium charged12. Fidelity bonds and other insurance on eachpolicies (Sec. 185) , or fraction thereof, of the amount of premium charged13. Policies of annuities and pre-needplans (Sec. 186)Annuities per PhP200, or fraction thereof, of the premium or installment payment or contract price collectedPre-need plans per PhP200, or faction thereof, of the premium or contribution collected153 Chapter VI DOCUMENTARY STAMP TaxGuide to Philippine Taxes Documents/Instruments Tax Rate14.

9 Indemnity bonds (Sec. 187) on each , or fraction thereof, of the premiumcharged15. Certificates (Sec. 188) Warehouse receipts (Sec. 189) Jai-alai and horse race tickets, lotto or other worthauthorized numbers games (Sec. 190) and additional for each in excess of Bills of Lading or receipts (Sec.)

10 191)a. Value exceeding P100 but not over Value exceeding P1,000 Proxies (Sec. 192) Powers of attorney (Sec. 193) Leases and other hiring agreements for the first(Sec. 194) PhP2,000, or fraction thereof, and additional for every PhP1,000 or fraction thereof, in excess of the first PhP2,000 per year154 Chapter VI DOCUMENTARY STAMP TaxGuide to Philippine Taxes Documents/Instruments Tax Rate22.