Documentary Stamp Tax on Educational Certificates

The circular reiterates Revenue Regulations No. 9-2000 dated August 31, 2000, which implements Section 188 of the NIRC.
The circular specifically reiterates the DST mode of payment and remittance rules in Section 3(4) of Revenue Regulations No. 9-2000.
The remittance rule refers to Title VII of the NIRC, which prescribes the stamp tax for taxable documents and transactions.
The certificates covered include Diploma, Transcript of Records, and other documents taxable as certificates under Section 188 of the Code.

The circular is issued to reiterate certain DST provisions for educational institutions issuing taxable certificates.
The circular instructs that Internal revenue officers and employees must give the circular wide publicity as possible.

Section 3(4) of Revenue Regulations No. 9-2000 (as reiterated) provides that when one of the parties to a taxable document or transaction is an entity enumerated in the regulation, that entity is responsible for the remittance of the stamp tax prescribed under Title VII of the NIRC.
An educational institution is responsible for remitting the DST in respect of issuance of taxable certificates, expressly including Diploma and Transcript of Records.
If the educational institution responsible for remittance is exempt from tax under the DST imposed by the Code, it must remit the tax as a collecting agent.
The “collecting agent” remittance obligation applies even if any provision of the regulations would otherwise be contrary, by operation of the proviso in Section 3(4).

Diploma issuance by an educational institution is subject to DST remittance under the circular’s reiterated rule.
Transcript of Records issuance by an educational institution is subject to DST remittance under the circular’s reiterated rule.
Other documents taxable as certificates under Section 188 of the NIRC are included within the scope of taxable certificates covered by the educational institution remittance rule.

The circular was adopted on March 17, 2008, and it directs internal revenue personnel to implement it through publicity and enforcement of the DST remittance rule.
All Internal revenue officers and employees are required to follow the circular’s reiterated treatment of DST on certificates issued by educational institutions.