QuestionsQuestions (BIR REVENUE REGULATION NO. 9-94)
Section 2 provides that where one party is exempt, the other party who is not exempt shall be the directly liable for the tax.
It states that “Loan agreement” and “Mortgage” generally refer to distinct and separate instruments: a loan agreement is taxed under Section 180, while a deed of mortgage is taxed under Section 195.
A loan agreement is a written contract where one party delivers money or other consumable thing upon condition of repayment; it includes credit facilities evidenced by credit memo, advice, or drawings.
It means the juridical necessity to give, do, or not to do, or the right arises from sources within the Philippines.
When the property, whether real or personal, is located in the Philippines.
Generally, by purchase and affixation with subsequent cancellation. If the tax due is P10 or more, payment is made at the time of the transaction and the official receipt details (number, date, amount, and name of payor) are written on the face of the document instead of affixing stamps.
It accrues at the time the shares are issued; delivery of certificates to stockholders is not essential for the tax to attach.
Thirty centavos (P0.30) on each two hundred pesos (or fractional part) of the face value of the loan agreement under Section 180 in relation to Section 173.
It is based on the amount of drawings or availment of the facilities, evidenced by credit/debit memo, advice, or drawings by checks or withdrawal slips.
It is treated as covering only one taxable transaction and documentary stamp tax under Section 195 is paid and computed on the full amount of the loan or credit granted.
Exemption applies to loan agreements or promissory notes (aggregate not exceeding P250,000) executed by an individual for personal use (house, lot, motor vehicle, appliance or furniture) and not for business, resale, barter, or hire.
The value is aggregated, and the promissory notes are taken as one.
If the purchase on installment exceeds P250,000, the whole purchase price is subject to the documentary stamp tax under Section 180.
It subjects them to P0.30 on each two hundred pesos (or fractional part) of the face value of such securities or instruments.
Late payment triggers a 25% surcharge of basic tax due. If unpaid basic tax and the 25% surcharge within the required period, there is further assessment/collection of 20% interest per annum computed on the basic tax and surcharge.
It applies to transactions made or documents/instruments executed or issued as of January 14, 1994—the date RA 7660 took effect.