Stamp Tax on Sales and Transfers of Bonds and Stocks
- Imposed on all sales, agreements to sell, memoranda of sales, deliveries, or transfers of bonds, due-bills, certificates of obligation, or shares or certificates of stock.
- Tax rate is ten centavos for every two hundred pesos or fractional part of the par value.
- Only one tax is collected per sale or transfer between persons regardless of how the security is handled.
- For stocks without par value, the tax equals 20% of the stamp tax paid upon the original issue of the stock.
Stamp Tax on Warehouse and Hotel Receipts
- On warehouse receipts: thirty centavos documentary stamp tax for property held in storage not owned by warehouse proprietor.
- No tax if total value in one calendar month per person does not exceed two hundred pesos.
- On hotel receipts: fifty centavos stamp tax for each twenty pesos or fractional part of lodging fees charged.
Stamp Tax on Passage Tickets
- Imposed on passage tickets or receipts for money paid for passage on transportation (excluding government-owned vessels).
- Tax rates vary based on ticket price:
- Up to 60 pesos: 7.50 pesos
- Over 60 to 120 pesos: 12 pesos
- Over 120 to 250 pesos: 15 pesos
- Over 250 to 500 pesos: 30 pesos
- Over 500 to 1000 pesos: 50 pesos
- Over 1000 pesos: 100 pesos
Stamp Tax on Mortgages, Pledges, and Deeds of Trust
- Applies to all mortgages and pledges of real or personal property used as security for definite sums lent.
- Tax rates:
- Between 1,000 and 3,000 pesos: 1.50 pesos
- For every additional 3,000 pesos or fraction thereof over 3,000 pesos: additional 1.50 pesos
- For mortgages with fluctuating accounts or future advances without fixed limits, tax computed on amount actually loaned upon execution and additional tax for subsequent advances.
- Full amount of loan or credit specified in the mortgage requires full payment of documentary stamp tax.
Stamp Tax on Deeds of Sale and Conveyances of Real Property
- Applies to conveyances, deeds, instruments, or writings transferring land or other realty, excluding original government-issued grants or patents.
- Tax rates:
- If consideration exceeds 200 pesos but does not exceed 1,000 pesos: 0.75 pesos
- For each additional 1,000 pesos or fraction thereof beyond 1,000 pesos: 3 pesos
- Revenue officers may reassess tax based on the true market value if incorrect consideration is declared.
Effectivity and Duration of Increased Taxes
- The Act takes effect upon approval.
- Increased tax rates are effective only until December 31, 1952.
- After this period, original tax rates under prior law are reinstated unless Congress extends the increases.