QuestionsQuestions (BIR REVENUE MEMORANDUM CIRCULAR NO. 25 - 2008)
It reiterates and clarifies the provisions of Revenue Regulations No. 9-2000 implementing Section 188 of the NIRC on the documentary stamp tax (DST) applicable to certificates issued by educational institutions, such as diplomas and transcripts of records.
RMC No. 25-2008 cites and reiterates provisions of Revenue Regulations No. 9-2000 (dated August 31, 2000) implementing Section 188 of the National Internal Revenue Code.
It is meant to implement Section 188 of the National Internal Revenue Code, particularly as to the DST on certificates and similar documents.
It addresses who is responsible for remitting the stamp tax when one of the parties to the taxable document or transaction belongs to specified entities.
The educational institution is responsible for the remittance of the stamp tax prescribed under Title VII of the NIRC.
If the educational institution is exempt, it must still remit the DST as a collecting agent, pursuant to the regulations’ provisions on collecting agents.
It emphasizes that the rule on remittance—whether as remitter or collecting agent if exempt—controls despite any conflicting provisions within the regulations.
It means that although the institution may not be directly liable for the tax, it must still collect and remit the DST on the taxable certificates for the government.
Because Title VII contains the provisions on documentary stamp tax; the circular specifies that the stamp tax remitted by the educational institution is the one prescribed under Title VII.
Diplomas and transcripts of records are expressly mentioned, and the circular also covers other documents taxable as certificates under Section 188.
They are enjoined to give the circular as wide publicity as possible.