DOCUMENTARY STAMP TAX

Tax Advisory Services

Academy of Quality Training
Alas, Oplas, & Co., CPAs
 TO KNOW AND UNDERSTAND THE TRAIN LAW, ITS EFFECTS
AND APPLICATION INCLUDING THE MOST RECENT BIR
ISSUANCES AND UPDATES REGARDING ITS IMLEMENTATION
 Comparison of Documentary Stamp Tax Rate – OLD vs. NEW
 Original Issue of Shares of Stock
 Sales, Agreements to Sell, Memoranda of Sales, Deliveries or
Transfer of Shares or Certificate of Stock
 Certificates of Profits or Interest in Property or Accumulations
 Bank Checks, Drafts, Certificates of Deposit not Bearing Interest,
and other Instruments
 All Debt Instruments
 All Bills of Exchange or Drafts
 Upon Acceptance of Bills of Exchange and Others
 Foreign Bills of Exchange and Letters of Credit
 Life Insurance Policies
 Policies of Annuities and Pre-Need Plans
 Certificates
 Warehouse Receipts
 Comparison of Documentary Stamp Tax Rate – OLD vs. NEW
 Jai-alai, Horse Race, Tickets, Lotto or Other Authorized Numbers
Games
 Bills of Lading or Receipts
 Proxies
 Powers of Attorney
 Leases and Other Hiring Agreements
 Mortgages, Pledges and Deeds of Trust
 Deeds of Sale, Conveyances and Donation of Real Property
 Charter Parties and Similar Instruments
 NIRC of 1997,
TYPE OF DOCUMENT TRAIN
as amended
Original Issue of Shares of Stock
₱1 ₱2
Tax base = par value for every ₱200

Sales, Agreements to Sell, Memoranda of Sales,

Deliveries or Transfer of Shares or Certificates of
Stocks
₱0.75 ₱1.50
Tax base = par value for every ₱200

Certificates of Profits or Interest in Property or

Accumulations

Tax base = face value of certificate or memorandum for ₱0.50 ₱1

every ₱200
 NIRC of 1997,
TYPE OF DOCUMENT TRAIN
as amended
Bank Checks, Drafts, Certificates of Deposit not Bearing
Interest, and Other Instruments
₱1.50 ₱3
Tax base = per document

All Debt Instruments

₱1 ₱1.50
Tax base = issue price

All Bills of Exchange or Drafts

₱0.30 ₱0.60
Tax base = face value of such bill of exchange or draft for
every ₱200
Upon Acceptance of Bills of Exchange and Others
₱0.30 ₱0.60
Tax base = face value in Php for every ₱200
 NIRC of 1997, as
TYPE OF DOCUMENT TRAIN
amended
Foreign Bills of Exchange and Letters of
Credit
₱0.30 ₱0.60
Tax base = face value in Php for every ₱200

Life Insurance <₱100,000 Exempt Exempt

Policies
>₱100,000 but <₱300,000 ₱10 ₱20
Tax base = amount
of insurance >₱300,000 but <₱500,000 ₱25 ₱ 50

>₱500,000 but <₱750,000 ₱50 ₱100

>₱750,000 but
₱75 ₱150
<₱1,000,000

Exceeds ₱1,000,000 ₱100 ₱200

 NIRC of 1997,
TYPE OF DOCUMENT TRAIN
as amended
Policies of Annuities

Tax base = premium or installment payment on ₱0.50 ₱1

contract price collected for every ₱200

Pre-need Plans
₱0.20 ₱0.40
Tax base = premium or contribution collected for
every ₱200
Certificates
₱15 ₱30
Tax base = per certificates
Warehouse Receipts

Tax base = per receipts ₱15 ₱30

*exemption if the receipt for 1 month does not
exceed ₱200
 NIRC of 1997,
TYPE OF DOCUMENT TRAIN
as amended
Jai-alai, Horse Race, Tickets, Lotto or Other
Authorized Numbers Games.
*₱0.10 *₱0.20
Tax base = + +
*on each game/ticket **₱0.10 **₱0.20
** for every ₱1, if ticket exceed ₱1

Bills of Lading or Receipts >₱100 but

₱1 ₱2
<₱1000
Tax base = On each set of bills of
lading or receipts Exceeds
₱10 ₱20
₱1000
Proxies
₱15 ₱30
Tax base = on each proxy
 NIRC of 1997, as
TYPE OF DOCUMENT TRAIN
amended
Powers of Attorney
₱5 ₱ 10
Tax base = on each power of attorney
Leases and Other Hiring
1st ₱2,000 ₱3 ₱6
Agreements

Tax base = total value of In excess of ₱2,000,

the contract for each year ₱1 ₱2
for every ₱1,000
of the term
Mortgages, Pledges and
Deeds of Trust <₱5,000 ₱20 ₱40

Tax base = amount In excess of ₱5,000,

secured ₱10 ₱20
for every ₱5,000
 NIRC of 1997, as
TYPE OF DOCUMENT TRAIN
amended
Deeds of Sale, Conveyances and xxx
Donation of Real Property
Transfers exempt from
Addendum in the provision donor’s tax under
Section 101(a) and (b)
Silent about exempt
of this Code shall be
transfer
exempt from the tax
imposed under this
Section

xxx
 TYPE OF NIRC of 1997,
TRAIN
DOCUMENT Tonnage Period as amended
Charter Parties and
Similar Instruments < 6 months ₱500 ₱1,000
< 1,000
Tax base = registered Excess of 6 ₱100 /
₱50 / month
gross tonnage months month

< 6 months ₱1,000 ₱2,000

> 1,000 but
< 10,000 Excess of 6 ₱200 /
₱100 / month
months month

< 6 months ₱1,500 ₱3,000

Exceeds
10,000 Excess of 6 ₱300 /
₱150 / month
months month
 Implementing Rules and Regulation for the new rates of
Documentary Stamp Tax (DST)
 Includes further explanation on how to apply the new tax rates
on documents specially on the added provision on Section 196
Stamp tax on Deeds of Sale, Conveyances and Donation of Real
Property.
Revenue Memorandum Circular (RMC) No. 3-2018
 Steps:
a) Use the existing BIR form in the eFPS;
b) Fill in the required information (e.g., date of transactions, parties
to the transactions, etc.);
c) Click and choose the applicable ATC, nature of transaction, tax
rate and tax due will automatically appear;
d) Change the amount of tax due computed by the system with the
correct amount using the new tax rate
e) File the return then proceed to payment and pay the corrected tax
due thereon.
 Steps:
1) File online using the existing BIR form in the eBIRForms Package
then pay the corresponding taxes due thereon via:
a. Online payment thru Gcash, Landbank Electronic Payment Service
(LBEPS) or BIR-DBP PayTax Online (BDPTO); or
b. Manual payment via over-the-counter (OTC) of Authorized Agent Banks
(AABs) under the jurisdiction of the Revenue District Office (RDO)
where the taxpayer is registered.
2) The above transactions will result to defiency tax, and to cover the
deficiency, eBIRForm users must file and pay the defiency using
BIR Form No. 0605 and fill in the information in the Tax Type and
ATC fields on the table below:
Tax Type ATC
DS Documentary Stamp Tax
MC 031 – Deficiency Tax
DO Documentary Stamp Tax – One Time
 Steps:
1) Fill-in the applicable BIR form [pre-printed or downloaded form in
BIR website (www.bir.gov.ph) under the BIR Forms section of the
website] using the new tax rates then compute the tax due
thereon.
2) File and pay manually via OTC of AABs under the jurisdiction of
the RDO where the taxpayer is registered
“When it is obvious that the goals cannot be reached, don't
adjust the goals, adjust the action steps.” - Confucius
THANK YOU!!

TAX ADVISORY SERVICES

ALAS, OPLAS & CO., CPAS
25TH FLOOR PHILIPPINE AXA LIFE CENTRE,
SEN. GIL PUYAT COR. TINDALO ST. MAKATI CITY

Telephone: +63 (02) 759-5091 to 92

Email: aocheadoffice@alasoplascpas.com