Question & AnswerQ&A (BIR REGULATIONS NO. 13-2004)
BIR Regulations No. 13-2004 implements the provisions of Republic Act No. 9243, which rationalizes the documentary stamp tax (DST) provisions under the National Internal Revenue Code (NIRC) of 1997, as amended, including changes in rates, bases, and exempted documents.
Shares of stock with par value are subject to a documentary stamp tax of One peso (P1.00) for each Two hundred pesos (P200) or fractional part thereof of the par value upon original issue.
The DST rate is Seventy-five centavos (P0.75) on each Two hundred pesos (P200) or fractional part thereof of the par value of the stock transferred. For shares without par value, the DST is 25% of the DST paid on the original issue.
Yes, all such sales, agreements to sell, memoranda of sales, deliveries, or transfers are subject to DST unless exempted by law, and only one tax is collected per transfer.
Debt instruments include debentures, certificates of indebtedness, due bills, bonds, loan agreements (including those signed abroad if the contract's object is in the Philippines), government-issued securities, deposit substitutes, certificates of deposit with specified conditions, orders for payment, promissory notes (negotiable or non-negotiable), except bank notes for circulation.
DST is computed proportionally based on the ratio of the term in days to 365 days, multiplied by the DST rate of One peso (P1.00) per Two hundred pesos (P200) of the issue price.
Thirty centavos (P0.30) on each Two hundred pesos (P200) or fractional part thereof of the face value of such bill or draft.
DST is now based on the amount of premium collected, not the amount insured. The rate remains Fifty centavos (P0.50) on each Two hundred pesos (P200) or fractional part thereof of the premium collected.
Yes, premiums collected including those paid through cash surrender value, dividends, or other modes, whether on original or amended policies, are subject to DST.
Exemptions include policies by fraternal or beneficiary societies operated solely for members’ benefit, oaths administered by government officials, documents filed in courts by the government, some loan agreements below specified amounts, stock transactions via the stock exchange for five years, assignments with no change in terms, fixed income securities traded secondarily, derivatives by BSP-authorized entities, interbranch advances, certain forebearances, deposit accounts without fixed maturity, contracts related to Bangko Sentral ng Pilipinas, certain property transfers, and interbank call loans with maturities not exceeding seven days.
Yes, DST rates apply to all documents unless expressly exempted, regardless of whether the documents are in electronic form, pursuant to the Electronic Commerce Act (R.A. 8792).
The regulations and amendments apply to transactions and documents executed or issued as of March 20, 2004, the effectivity date of R.A. No. 9243.
Insurance companies must submit an inventory (hard and soft copies) of all issued, outstanding, and valid life insurance policies and annuities/pre-need plans as of March 19, 2004, under oath, by January 31, 2005.