Title
DST Rate Adjustment under TRAIN Law
Law
Revenue Regulations No. 4-2018
Decision Date
Jan 26, 2018
The Revenue Regulations No. 04-18 adjusts the rates of documentary stamp taxes (DST) in the Philippines, including increases in rates for shares of stocks, certificates of deposit, debt instruments, life insurance policies, and various other transactions, with the purpose of implementing the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Law Summary

DST on Original Issue of Shares of Stock

  • Documentary stamp tax of PHP 2.00 per PHP 200 or fractional part of par value.
  • For shares without par value, DST based on actual consideration.
  • For stock dividends, based on actual value represented by each share.
  • DST rate increased from PHP 1.00 to PHP 2.00 per PHP 200.

DST on Sales, Agreements to Sell, and Transfer of Shares or Stock Certificates

  • DST of PHP 1.50 per PHP 200 or fractional part of par value on sales, agreements, memoranda, deliveries, or transfers.
  • Only one DST is collected per sale or transfer regardless of number of instruments issued.
  • For stocks without par value, DST equals 50% of DST paid on original issue.
  • Rate increased from PHP 0.75 to PHP 1.50 per PHP 200.

DST on Certificates of Profits or Interest in Property or Accumulations

  • DST of PHP 1.00 per PHP 200 or fractional part of face value.
  • Rate increased from PHP 0.50 to PHP 1.00.

DST on Bank Checks, Drafts, and Certificates of Deposit Not Bearing Interest

  • DST of PHP 3.00 on each such instrument.
  • Rate increased from PHP 1.50 to PHP 3.00.

DST on All Debt Instruments

  • DST of PHP 1.50 per PHP 200 or fractional part of issue price.
  • Pro-rated DST for instruments with terms less than one year.
  • Only one DST imposed on either loan agreement or promissory notes securing the loan.
  • Rate increased from PHP 1.00 to PHP 1.50 per PHP 200.

DST on Bills of Exchange or Drafts

  • DST of PHP 0.60 per PHP 200 or fractional part of face value for bills between points within the Philippines.
  • Rate increased from PHP 0.30 to PHP 0.60.

DST on Acceptance of Bills of Exchange and Related Instruments

  • DST of PHP 0.60 per PHP 200 or fractional part on acceptance of foreign-drawn bills payable in the Philippines.
  • Applies also to Philippine equivalent if expressed in foreign currency.
  • Rate increased from PHP 0.30 to PHP 0.60.

DST on Foreign Bills of Exchange and Letters of Credit

  • DST of PHP 0.60 per PHP 200 or fractional part on foreign bills or letters of credit drawn in but payable outside the Philippines.
  • Rate increased from PHP 0.30 to PHP 0.60.

DST on Life Insurance Policies

  • One-time DST imposed based on amount insured:
    • Exempt if amount ≤ PHP 100,000.
    • PHP 20 for > PHP 100,000 to PHP 300,000.
    • PHP 50 for > PHP 300,000 to PHP 500,000.
    • PHP 100 for > PHP 500,000 to PHP 750,000.
    • PHP 150 for > PHP 750,000 to PHP 1,000,000.
    • PHP 200 for amounts > PHP 1,000,000.
  • Rates doubled from previous amounts.

DST on Policies of Annuities and Pre-Need Plans

  • Annuities: PHP 1.00 per PHP 200 or fractional part of premium collected (up from PHP 0.50).
  • Pre-need plans: PHP 0.40 per PHP 200 or fractional part (up from PHP 0.20).

DST on Certificates

  • DST of PHP 30.00 on each certificate (e.g., damage certificates, notary certificates).
  • Rate increased from PHP 15.00.

DST on Warehouse Receipts

  • DST of PHP 30.00 per receipt for property stored publicly or privately.
  • Exemption if value does not exceed PHP 200 for one person in a month.
  • Rate increased from PHP 15.00.

DST on Jai-Alai, Horse Race, Lotto, or Other Authorized Numbers Games Tickets

  • Basic DST of PHP 0.20 per ticket (up from PHP 0.10).
  • Additional DST of PHP 0.20 for every PHP 1.00 or fractional part thereof if ticket cost exceeds PHP 1.00 (up from PHP 0.10).

DST on Bills of Lading or Receipts

  • DST of PHP 2.00 if value of goods is > PHP 100 but ≤ PHP 1,000 (up from PHP 1.00).
  • DST of PHP 20.00 if value exceeds PHP 1,000 (up from PHP 10.00).
  • Freight tickets for accompanied baggage on land and water carriers are exempt.

DST on Proxies

  • DST of PHP 30.00 on proxies for voting at elections or other purposes (except for religious, charitable, literary associations).
  • Rate increased from PHP 15.00.

DST on Powers of Attorney

  • DST of PHP 10.00 on each power of attorney except those for government claim collections.
  • Rate increased from PHP 5.00.

DST on Leases and Other Hiring Agreements

  • DST of PHP 6.00 for first PHP 2,000 or fractional part thereof, plus PHP 2.00 for every additional PHP 1,000 or fraction thereof per year.
  • Increased from PHP 3.00 plus PHP 1.00 respectively.

DST on Mortgages, Pledges, and Deeds of Trust

  • DST of PHP 40.00 for amount secured up to PHP 5,000.
  • Additional PHP 20.00 per PHP 5,000 or fraction thereof exceeding PHP 5,000.
  • Rates doubled from PHP 20.00 and PHP 10.00 respectively.

DST on Deeds of Sale, Conveyances, and Donations of Real Property

  • DST based on higher of contracted consideration or fair market value.
  • PHP 15.00 for value up to PHP 1,000; PHP 15.00 for each additional PHP 1,000 or fractional part.
  • Donations now subject to DST except those exempt under donor's tax law for:
    • Gifts to government entities not for profit.
    • Gifts to educational, charitable, religious, cultural, or social welfare organizations (with conditions on administration costs).
  • Proper tax collectible upon determination if consideration understated.

DST on Charter Parties and Similar Instruments

  • DST rates increased substantially based on registered gross tonnage and charter duration.
  • Examples:
    • Up to 1,000 tons, six months: PHP 1,000; additional PHP 100/month beyond.
    • 1,001 to 10,000 tons, six months: PHP 2,000; additional PHP 200/month.
    • Over 10,000 tons, six months: PHP 3,000; additional PHP 300/month.

Repealing Clause

  • All inconsistent rules and regulations are repealed, amended, or modified accordingly.

Separability Clause

  • If any provision is invalid or unconstitutional, remaining provisions stay effective.

Effectivity

  • Regulations take effect 15 days after publication in the Official Gazette or newspaper of general circulation, whichever is earlier.

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