Legal basis and implementing mandate
- The regulations are promulgated under Section 4 and Section 244 of Republic Act No. 8424 and Section 84 of Republic Act No. 10963.
- The regulations implement the DST rate adjustment for the DST provisions identified in the scope.
New DST rates: original issue of shares
- An original issue of shares of stock, whether on organization, reorganization, or for any lawful purpose, is subject to DST under the amended rule in Section 174 (as implemented).
- DST is imposed at two pesos (P2.00) on each two hundred pesos (P200), or fractional part thereof, of the par value of the shares.
- For original issues of shares without par value, the DST is based on the actual consideration for the issuance.
- For stock dividends, DST is imposed on the actual value represented by each share.
- The rate increases the DST on the original issue of shares from one peso (P1.00) to two pesos (P2.00) on each two hundred pesos (P200), or fractional part thereof. (Section 2)
New DST rates: sales/transfer of shares
- DST applies to all sales, agreements to sell, memoranda of sales, deliveries, or transfers of shares (including transfers by assignment in blank, delivery, or other evidence of transfer or sale).
- DST is imposed even when the document or arrangement entitles the holder in any manner to the benefit of stock, or secures the future payment of money, or provides for the future transfer of stock.
- DST is imposed at one peso and fifty centavos (P1.50) on each two hundred pesos (P200), or fractional part thereof, of the par value of the stock.
- Only one tax is collected on each sale or transfer of stock from one person to another, regardless of whether a certificate of stock or obligation is issued, indorsed, or delivered pursuant to the sale or transfer.
- For stock without par value, the DST equals fifty percent (50%) of the DST paid upon the original issue of the same stock.
- The rate increases the DST from seventy-five centavos (P0.75) to one peso and fifty centavos (P1.50) on each two hundred pesos (P200), or fractional part thereof; for stock without par value, the DST is fifty percent (50%) of the original-issue DST. (Section 3)
New DST rates: certificates of profits/interest/accumulations
- DST applies to all certificates of profits and all certificates or memoranda showing interest in property or accumulations of any association, company, or corporation.
- DST also applies to the transfers of these certificates or memoranda.
- DST is imposed at one peso (P1.00) on each two hundred pesos (P200), or fractional part thereof, of the face value of the certificates or memoranda.
- The rate increases the DST from fifty centavos (P0.50) to one peso (P1.00) on each two hundred pesos (P200), or fractional part thereof. (Section 4)
New DST rates: bank instruments and debt
- DST applies to each bank check, draft, or certificate of deposit not drawing interest, and to an order for payment of any sum of money drawn upon or issued by any bank, trust company, or any person, company, or corporation, payable at sight or on demand.
- DST is imposed at three pesos (P3.00) on each such instrument. (Section 5)
- DST applies to every original issue of debt instruments.
- DST is imposed at one peso and fifty centavos (P1.50) on each two hundred pesos (P200), or fractional part thereof, of the issue price of the debt instruments.
- If the term of the debt instrument is less than one (1) year, the DST is collected as a proportional amount based on the ratio of its term in number of days to three hundred sixty-five (365) days.
- Only one documentary stamp tax is imposed on either loan agreement or promissory notes issued to secure such loan.
- The rate increases DST on all debt instruments from one peso (P1.00) to one peso and fifty centavos (P1.50) on each two hundred pesos (P200), or fractional part thereof. (Section 6)
New DST rates: bills of exchange/drafts (including acceptance)
- DST applies to all bills of exchange (between points within the Philippines) and to drafts.
- DST is imposed at sixty centavos (P0.60) on each two hundred pesos (P200), or fractional part thereof, of the face value of the bill or draft.
- The rate increases DST on bills of exchange/drafts from thirty centavos (P0.30) to sixty centavos (P0.60) on each two hundred pesos (P200), or fractional part thereof. (Section 7)
- DST also applies upon acceptance of payment of any bill of exchange or order for payment of money purporting to be drawn in a foreign country but payable in the Philippines.
- DST on acceptance is imposed at sixty centavos (P0.60) on each two hundred pesos (P200), or fractional part thereof, of the face value, or the Philippine equivalent if expressed in foreign currency.
- The acceptance rate increases from thirty centavos (P0.30) to sixty centavos (P0.60) on each two hundred pesos (P200), or fractional part thereof. (Section 8)
New DST rates: foreign bills and letters of credit
- DST applies to foreign bills of exchange and letters of credit (including orders by telegraph or otherwise) for payment of money issued by express or steamship companies or by any person or persons.
- Foreign bills and letters of credit must be drawn in but payable out of the Philippines in a set of three (3) or more according to the custom of merchants and bankers.
- DST is imposed at sixty centavos (P0.60) on each two hundred pesos (P200), or fractional part thereof, of the face value of the bill or letter of credit, or the Philippine equivalent if expressed in foreign currency.
- The rate increases from thirty centavos (P0.30) to sixty centavos (P0.60) on each two hundred pesos (P200), or fractional part thereof. (Section 9)
New DST rates: life insurance and annuities
- DST applies to policies of insurance or other instruments whereby insurance is made or renewed upon any life or lives.
- DST is imposed as a one-time documentary stamp tax at the rates below:
- If the amount of insurance does not exceed P100,000: Exempt.
- If the amount exceeds P100,000 but does not exceed P300,000: P20.00.
- If the amount exceeds P300,000 but does not exceed P500,000: P50.00.
- If the amount exceeds P500,000 but does not exceed P750,000: P100.00.
- If the amount exceeds P750,000 but does not exceed P1,000,000: P150.00.
- If the amount exceeds P1,000,000: P200.00.
- The regulations state that the DST rates on life insurance policies are doubled. (Section 10)
- DST also applies to policies of annuities and other instruments by whatever name whereby an annuity may be made, transferred, or redeemed.
- DST is imposed on annuities at one peso (P1.00) on each two hundred pesos (P200), or fractional part thereof, of the premium or installment payment on contract price collected.
- For pre-need plans, DST is imposed at forty centavos (P0.40) on each two hundred pesos (P200), or fractional part thereof, of the premium or contribution collected.
- The rate increases annuities from fifty centavos (P0.50) to one peso (P1.00) per P200 basis, while pre-need plans increase from twenty centavos (P0.20) to forty centavos (P0.40) per P200 basis. (Section 11)
New DST rates: certificates, warehouse receipts, and tickets
- DST applies to each certificate of damage and to every other certificate or document issued by a customs officer, marine surveyor, or other person acting as such.
- DST applies to each certificate issued by a notary public and to each certificate of any description required by law, by rules or regulations of a public office, or issued for giving information or establishing proof of a fact.
- DST is imposed on these certificates at thirty pesos (P30.00) each.
- The rate increases certificates from fifteen pesos (P15.00) to thirty pesos (P30.00). (Section 12)
- DST applies to each warehouse receipt for property held in storage in a public or private warehouse or yard for a person other than the proprietor.
- DST is imposed at thirty pesos (P30.00) per warehouse receipt.
- No tax is collected on each warehouse receipt issued to one person in any one calendar month covering property with value that does not exceed two hundred pesos (P200).
- The rate increases warehouse receipts from fifteen pesos (P15.00) to thirty pesos (P30.00). (Section 13)
- DST applies to each jai-alai ticket, horse race ticket, lotto ticket, or other authorized numbers game.
- DST is imposed at twenty centavos (P0.20) per ticket.
- If the cost of the ticket exceeds one peso (P1.00), an additional tax of twenty centavos (P0.20) is imposed on every one peso (P1.00), or fractional part thereof.
- The rate increases from ten centavos (P0.10) to twenty centavos (P0.20), and the additional tax increases from ten centavos (P0.10) to twenty centavos (P0.20) on each P1.00 increment or fractional part. (Section 14)
New DST rates: bills of lading, proxies, powers of attorney
- DST applies to each set of bills of lading or receipts except charter party.
- DST applies to goods, merchandise, or effects shipped from one port or place in the Philippines (except on ferries across rivers) or shipped to any foreign port.
- DST is imposed at two pesos (P2.00) per set of bills of lading or receipts if the value exceeds P100 but does not exceed P1,000.
- DST is imposed at twenty pesos (P20.00) per set if the value exceeds P1,000.
- Freight tickets covering goods, merchandise, or effects carried as accompanied baggage of passengers on land and water carriers primarily engaged in transportation of passengers are exempt.
- The rate increases bills of lading/receipts from one peso (P1.00) to two pesos (P2.00) for values over P100 up to P1,000, and from ten pesos (P10.00) to twenty pesos (P20.00) for values over P1,000. (Section 15)
- DST applies to each proxy for voting at an election of officers of any company or association, or for any other purpose.
- The proxy rule excludes proxies issued affecting the affairs of associations or corporations organized for religious, charitable, or literary purposes.
- DST is imposed at thirty pesos (P30.00) per proxy.
- The rate increases proxies from fifteen pesos (P15.00) to thirty pesos (P30.00). (Section 16)
- DST applies to each power of attorney to perform any act whatsoever, except powers of attorney connected with the collection of claims due from or accruing to the Government of the Republic of the Philippines or the government of any province, city or municipality.
- DST is imposed at ten pesos (P10.00) per power of attorney.
- The rate increases powers of attorney from five pesos (P5.00) to ten pesos (P10.00). (Section 17)
New DST rates: leases, mortgages, deeds of property, charter parties
- DST applies to each lease, agreement, memorandum, or contract for hire, use, or rent of lands or tenements or portions thereof.
- DST is six pesos (P6.00) for the first two thousand pesos (P2,000), or fractional part thereof.
- An additional DST of two pesos (P2.00) is imposed for every one thousand pesos (P1,000), or fractional part thereof, in excess of the first two thousand pesos (P2,000), for each year of the term of the contract or agreement.
- The rate increases the base from three pesos (P3.00) to six pesos (P6.00) for the first P2,000, and the additional tax from one peso (P1.00) to two pesos (P2.00) per P1,000 increment or fractional part in excess of P2,000, for each year of the term. (Section 18)
- DST applies to every mortgage or pledge of lands, estate, or property, real or personal, heritable or movable, made as security for payment of a definite and certain sum lent at the time of previously due and owing or forborne to be paid, being payable.
- DST also applies to any conveyance of land, estate, or property intended only as security—by express stipulation or otherwise.
- DST applies to deeds intended as security for amounts.
- DST rates for mortgages, pledges, and deeds of trust are:
- If the amount secured does not exceed P5,000: P40.00.
- For each P5,000, or fractional part thereof, in excess of P5,000: an additional tax of P20.00.
- The rate increases mortgages/pledges/deeds of trust from P20.00 to P40.00 when amount secured does not exceed P5,000, and increases the additional tax from P10.00 to P20.00 on each P5,000 or fractional part in excess of P5,000. (Section 19)
- DST applies to all conveyances, donations, deeds, instruments, or writings (other than grants, patents, or original certificates of adjudication issued by the government) whereby land or other realty is granted, assigned, transferred, donated, or otherwise conveyed.
- The DST is imposed based on the higher of (a) the consideration contracted to be paid for the realty or (b) its fair market value determined in accordance with Section 6(E) of the DST/Code rules incorporated here.
- When one contracting party is the Government, DST is based on actual consideration.
- DST rates for deeds of sale/conveyances/donations of real property are:
- If the consideration/value after proper allowance for encumbrance does not exceed P1,000: P15.00.
- For each additional P1,000, or fractional part thereof in excess of P1,000: P15.00.
- Transfers exempt from donation tax under Section 101 (a) and (b) of the governing Code are exempt from the DST imposed under this section.
- If the DST payable is reduced due to an incorrect statement of consideration, the Commissioner, provincial or city Treasurer, or other revenue officer shall assess the property’s true market value from assessment rolls or other reliable sources and collect the proper tax.
- Donations of real property are subject to DST under the amended rule, with exemptions tied to donation-tax exemptions under Section 101 (A) and (B):
- For gifts made by a resident: gifts to the National Government or a non-profit government entity, gifts to political subdivisions, and gifts to enumerated educational/charitable/religious/cultural/social-welfare organizations and trusts, subject to an administration-use limit of thirty percent (30%), and a definition tying nonprofit organizations to specific governance and distribution rules.
- For gifts made by a nonresident not a citizen of the Philippines: similar exemptions for gifts to the National Government or non-profit government entities/political subdivisions, and gifts to enumerated qualified organizations/trusts/research institutions, subject to the same thirty percent (30%) administration-use limit.
- DST applies to charter parties and similar instruments:
- DST applies to every charter party, charter contract or agreement for a ship/vessel/steamer, including renewals or transfers, and to writings between the captain/master/owner (or their agent) and other persons for or relating to the charter.
- DST rates for charter parties and similar instruments are determined by (a) registered gross tonnage and (b) duration:
- If registered gross tonnage does not exceed 1,000 and duration does not exceed 6 months: P1,000; for each month or fraction in excess of 6 months: additional P100.00.
- If registered gross tonnage exceeds 1,000 and does not exceed 10,000 and duration does not exceed 6 months: P2,000; for each month or fraction in excess of 6 months: additional P200.00.
- If registered gross tonnage exceeds 10,000 and duration does not exceed 6 months: P3,000; for each month or fraction in excess of 6 months: additional P300.00.
- The regulations state that charter party and similar instruments’ DST rates have been doubled. (Sections 20 and 21)
Repeal, separability, and effectivity timing
- Section 22 repeals, amends, or modifies all existing rules and regulations (or parts thereof) inconsistent with the regulations.
- Section 23 provides separability: invalid or unconstitutional clauses, sentences, provisions, or sections do not affect the remaining parts.
- Section 24 fixes effectivity at 15 days after publication in the Official Gazette or a newspaper of general circulation, whichever comes first.