Question & AnswerQ&A (BIR REVENUE REGULATION NO. 9-94)
Republic Act No. 7660 rationalizes further the structure and administration of the documentary stamp tax, amending specific provisions of the National Internal Revenue Code to implement these changes.
The person making, signing, issuing, accepting, or transferring the document, instrument, loan agreement, or paper is liable for the documentary stamp tax at the time the act is done or transaction had.
It is paid by purchasing and affixing documentary stamps on the document or instrument taxed, with cancellation of the stamp by writing, stamping, or perforating the date on the stamp and the document. For taxes of ten pesos or more, payment is made at the time of the transaction with details of the payment entered on the document.
It refers to a written contract where one party delivers money or other consumable things to another, conditioned upon repayment of the same amount, including credit facilities evidenced by credit memos or withdrawals.
Two pesos (P2.00) for each two hundred pesos or fractional part of the par value of the certificate of stock; for stock without par value, the tax is based on the actual consideration received.
Yes, if the obligation or right arises from Philippine sources or the property or object of the contract is located or used in the Philippines, then loan agreements signed abroad are subject to documentary stamp tax.
Loan agreements or promissory notes not exceeding P250,000 for personal use installment purchases of house, lot, motor vehicle, appliance or furniture are exempt from documentary stamp tax.
A surcharge of 25% of the basic tax due is imposed, and if payment fails after notice, an additional 20% interest per annum on the tax and surcharge is assessed.
Fifty centavos (P0.50) on each four pesos or fractional part thereof of the premium charged, with an exemption for reinsurance contracts.
A fixed tax of P20.00 applies if the amount secured does not exceed P5,000, plus an additional P10.00 for every P5,000 or fractional part thereof in excess, computed on the loan amount secured by the mortgage, pledge or deed of trust.