REPUBLIC ACT NO. 7660 - AN
ACT RATIONALIZING FURTHER THE STRUCTURE AND ADMINISTRATION OF THE
DOCUMENTARY STAMP TAX, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, ALLOCATING FUNDS FOR
SPECIFIC PROGRAMS, AND FOR OTHER PURPOSES
Section 1. Section 173 of the National Internal Revenue Code,
as amended, is hereby further amended to read as follows:
"Sec. 173. Stamp taxes upon documents, instruments,
loan agreements, and papers. — Upon documents, instruments, loan
agreements, and papers, and upon acceptances, assignments, sales and
transfers of the obligation, right, or property incident thereto, there
shall be levied, collected and paid for, and in respect of the
transaction so had or accomplished, the corresponding documentary stamp
taxes prescribed in the following sections of this Title, by the person
making, signing, issuing, accepting, or transferring the same wherever
the document is made, signed, issued, accepted, or transferred when the
obligation or right arises from Philippine sources or the property is
situated in the Philippines, and at the same time such act is done or
transaction had: provided, that whenever one party to the taxable
document enjoys exemption from the tax herein imposed, the other party
thereto who is not exempt shall be the one directly liable for the
tax."
Sec. 2. Section 174 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 174. Stamp tax on bonds, debentures, and
certificates of indebtedness. — On all bonds, debentures, and
certificates of indebtedness issued by any association, company, or
corporation, there shall be collected a documentary stamp tax of one
peso and fifty centavos (P1.50) on each two hundred pesos, or
fractional part thereof, of the face value of such documents."
Sec. 3. Section 175 of the National Internal
Revenue Code, as amended, is hereby further amended to read as
follows:
"Sec. 175. Stamp tax on original issue of
certificates of stock. — On every original issue, whether on
organization, reorganization or for any lawful purpose, of certificates
of stock by any association, company, or corporations, there shall be
collected a documentary stamp tax of Two pesos (P2.00) on each two
hundred pesos, or fractional part thereof, of the par value of such
certificates: provided, that in the case of the original issue of stock
without par value the amount of the documentary stamp tax herein
prescribed shall be based upon the actual consideration received by the
association, company, or corporation for the issuance of such stock,
and in the case of stock dividends on the actual value represented by
each share."
Sec. 4. Section 176 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 176. Stamp tax on sales, agreements to sell,
memoranda of sales, deliveries or transfer of due-bills, certificates
of obligation, or shares or certificates of stock. — On all sales, or
agreements to sell, or memoranda of sales, or deliveries, or shares or
transfer of due-bills, certificates of obligation, or shares or
certificates of stock in any association, company or corporation, or
transfer of such securities by assignment in blank, or by delivery, or
by any paper or agreement, or memorandum or other evidences of transfer
or sale whether entitling the holder in any manner to the benefit of
such due-bills, certificates of obligation or stock, or to secure the
future payment of money, or for the future transfer of any due-bill,
certificates of obligation or stock, there shall be collected a
documentary stamp tax of One peso (P1.00) on each two hundred pesos, or
fractional part thereof, of the par value of such due-bill,
certificates of obligation or stock: provided, that only one tax shall
be collected on each sale or transfer of stock or securities from one
person to another, regardless of whether or not a certificate of stock
or obligation is issued, endorsed, or delivered in pursuance of such
sale or transfer: and provided further, that in the case of stock
without par value the amount of the documentary stamp herein prescribed
shall be equivalent to twenty-five per centum of the documentary stamp
tax paid upon the original issue of said stock: provided, furthermore,
that the tax herein imposed shall be increased to One peso and fifty
centavos (P1.50) beginning 1996."
Sec. 5. Section 178 of the National Internal
Revenue Code, as amended, is hereby further amended to read as
follows:
"Sec. 178. Stamp tax on certificates of profits or
interests in property or accumulations. — On all certificates of
profits, or any certificate or memorandum showing interest in the
property or accumulations of any association, company, or corporation,
and on all transfers of such certificates or memoranda, there shall be
collected a documentary stamp tax of Fifty centavos (P0.50) on each two
hundred pesos, or fractional part thereof, of the face value of such
certificate or memorandum."
Sec. 6. Section 179 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 179. Stamp tax on bank checks, drafts,
certificates of deposit not bearing interest, and other instruments. —
On each bank check, draft, or certificate of deposit not drawing
interest, or order for the payment of any sum of money drawn upon or
issued by any bank, trust company, or any person or persons, companies
or corporations, at sight or on demand, there shall be collected a
documentary stamp tax of One peso and twenty-five centavos (P1.25):
provided, that the tax herein imposed shall be increased to One peso
and fifty centavos (P1.50) beginning 1996."
Sec. 7. Section 180 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 180. Stamp tax on all loan agreements,
promissory notes, bills of exchange, drafts, instruments and securities
issued by the government or any of its instrumentalities, certificates
of deposit bearing interest and others not payable on sight or demand.
— On all loan agreements signed abroad wherein the object of the
contract is located or used in the Philippines; bills of exchange
(between points within the Philippines), drafts, instruments and
securities issued by the Government or any of its instrumentalities or
certificates of deposits drawing interest, or orders for the payment of
any sum of money otherwise than at the sight or on demand, or on all
promissory notes, whether negotiable or non- negotiable, except bank
notes issued for circulation, and on each renewal of any such note,
there shall be collected a documentary stamp tax of Thirty centavos
(P0.30) on each Two hundred pesos, or fractional part thereof, of the
face value of any such agreement, bill of exchange, draft, certificate
of deposit, or note: provided, that only one documentary stamp tax
shall be imposed on either loan agreement, or promissory note issued to
secure such loan, whichever will yield a higher tax: provided, however,
that loan agreements or promissory notes the aggregate of which does
not exceed Two hundred fifty thousand pesos (P250,000) executed by an
individual for his purchase on installment for his personal use or that
of his family and not for business, resale, barter or hire of a house,
lot, motor vehicle, appliance or furniture shall be exempt from the
payment of the documentary stamp tax provided under this section."
Sec. 8. Section 184 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 184. Stamp tax on policies of insurance upon
property. — On all policies of insurance or other instruments by
whatever name the same may be called, by which insurance shall be made
or renewed upon property of any description, including rents or
profits, against peril by sea or on inland waters, or by fire or
lightning, there shall be collected a documentary stamp tax of Fifty
centavos (P0.50) on each four pesos, or fractional part thereof, of the
amount of premium charged: provided, however, that no documentary stamp
tax shall be collected on reinsurance contracts or on any instrument by
which cession or acceptance of insurance risks under any reinsurance
agreement is effected or recorded."
Sec. 9. Section 185 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 185. Stamp tax on fidelity bonds and other
insurance policies. — On all policies of insurance or bonds or
obligations of the nature of indemnity for loss, damage, or liability
made or renewed by any person, association, company or corporation
transacting the business of accident, fidelity, employer's liability,
plate, glass, steam boiler, burglar, elevator, automatic sprinkler, or
other branch of insurance (except life, marine, inland, and fire
insurance), and all bonds, undertakings, or recognizances, conditioned
for the performance of the duties of any office or position, for the
doing or not doing of anything therein specified, and on all
obligations guaranteeing the validity or legality of any bonds or other
obligations issued by any province, city, municipality, or other public
body or organization, and on all obligations guaranteeing the title to
any real estate, or guaranteeing any mercantile credits, which may be
made or renewed by any such person, company or corporation, there shall
be collected a documentary stamp tax of Fifty centavos (P0.50) on each
four pesos, or fractional part thereof of the premium charged."
SECTION 10. Section 186 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 186. Stamp tax on policies of annuities and
pre-need plans. — On all policies of annuities, or other instruments by
whatever name the same may be called, whereby an annuity may be made,
transferred, or redeemed, there shall be collected a documentary stamp
tax on One peso and fifty centavos (P1.50) on each two hundred pesos or
fractional part thereof, of the capital of the annuity, or should this
be unknown, then on each two hundred pesos, or fractional part thereof,
of thirty-three and one-third times the annual income. On
pre-need plans, the documentary stamp tax shall be at Fifty centavos
(P0.50) on each five hundred pesos (P500.00), or fractional part
thereof, of the value or amount of the plan. "
SECTION 11. Section 187 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 187. Stamp tax on indemnity bonds. — On all
bonds for indemnifying any person, firm or corporation who shall become
bound or engaged as surety for the payment of any sum of money or for
the due execution or performance of the duties of any office or
position or to account for money received by virtue thereof, and all
other bonds of any description, except such as may be required in legal
proceedings, or are otherwise provided for herein, there shall be
collected a documentary stamp tax of Ten centavos (P0.10) on each four
pesos or fractional part thereof of the premium charged: provided, that
the tax herein imposed shall be increased to Thirty centavos (P0.30) on
each four pesos or fractional part thereof of the premium charged
beginning 1996."
SECTION 12. Section 188 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 188. Stamp tax on certificates. — On each
certificate of damage or otherwise, and on every other certificate or
document issued by any customs officer, marine surveyor, or other
person acting as such, and on each certificate issued by a notary
public, and on each certificate of any description required by law or
by rules and regulations of a public office, or which is issued for the
purpose of giving information, or establishing proof of a fact, and not
otherwise specified herein, there shall be collected a documentary
stamp tax of Ten pesos (P10.00): provided, that the tax herein imposed
shall be increased to Fifteen pesos (P15.00) beginning 1996."
SECTION 13. Section 189 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 189. Stamp tax on warehouse receipts. — On each
warehouse receipt for property held in storage in a public or private
warehouse or yard for any person other than the proprietor of such
warehouse or yard, there shall be collected a documentary stamp tax of
Ten pesos (P10.00): provided, that no tax shall be collected on each
warehouse receipt issued to any one person in any one calendar month
covering property the value of which does not exceed two hundred pesos:
provided, further, that the tax herein imposed shall be increased to
Fifteen pesos (P15.00) beginning 1996."
SECTION 14. Section 190 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 190. Stamp tax on jai-alai, horse race tickets,
lotto, or other authorized numbers games. — On each jai-alai, horse
race tickets, lotto, or other authorized numbers games, there shall be
collected a documentary stamp tax of ten centavos (P0.10): provided,
that if the cost of the ticket exceeds One peso (P1.00), an additional
tax of Ten centavos (P0.10) on every One peso (P1.00) or fractional
part thereof shall be collected."
SECTION 15. Section 191 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 191. Stamp tax on bills of lading or receipts.
— On each set of bills of lading or receipts (except charter party) for
any goods, merchandise, or effects shipped from one port or place in
the Philippines to another port or place in the Philippines (except on
ferries across rivers), or to any foreign port, there shall be
collected a documentary stamp tax of One peso (P1.00), if the value of
such goods exceed One hundred pesos (P100.00), and does not exceed One
thousand pesos (P1,000); ten pesos (P10.00) if the value exceeds One
thousand pesos (P1,000.00): provided, however, that freight tickets
covering goods, merchandise or effects carried as accompanied baggage
of passengers on land and water carriers primarily engaged in the
transportation of passengers are hereby exempt."
SECTION 16. Section 192 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 192. Stamp tax on proxies. — On each proxy for
voting at any election for officers of any company or association, or
for any other purpose, except proxies issued affecting the affairs of
associations or corporations organized for religious, charitable, or
literary purposes, there shall be collected a documentary stamp tax of
Ten pesos (P10.00): provided, that the tax herein imposed shall be
increased to Fifteen pesos (P15.00) beginning 1996."
SECTION 17. Section 193 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 193. Stamp tax on powers of attorney. — On each
power of attorney to perform any act whatsoever, except acts 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, there shall be collected a documentary stamp tax
of Five pesos (P5.00)."
SECTION 18. Section 194 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 194. Stamp tax on leases and other hiring
agreements. — On each lease, agreement, memorandum, or contract for
hire, use or rent of any lands or tenements, or portions thereof, there
shall be collected a documentary stamp of Three pesos (P3.00) for the
first Two Thousand pesos (P2,000.00), or fractional part thereof, and
an additional One peso (P1.00) for every One thousand pesos (P1,000.00)
or fractional part thereof in excess of the first two thousand pesos
(P2,000.00) for each year of the term of said contracts or agreement."
SECTION 19. Section 195 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 195. Stamp tax on mortgages, pledges, and deeds
of trust. — On every mortgage or pledge of lands, estate, or property,
real or personal, heritable or movable, whatsoever, where the same
shall be made as a security for the payment of any definite and certain
sum of money lent at the time or previously due and owing or forborne
to be paid being payable, and on any conveyance of land, estate, or
property whatsoever, in trust or to be sold, or otherwise converted
into money which shall be and intended only as security, either by
express stipulation or otherwise, there shall be collected a
documentary stamp tax at the following rates:
"(a) When the amount secured does not exceed Five thousand pesos,
Twenty pesos (P20.00);
"(b) On each Five Thousand pesos, or fractional part
thereof in excess of Five thousand pesos, an additional tax of Ten
pesos (P10.00).
"On any mortgage, pledge, or deed of trust, where the same shall be
made as fluctuating account or future advances without fixed
limit, the documentary stamp tax on such mortgage, pledge or deed of
trust shall be computed on the amount actually loaned or given at the
time of the execution of the mortgage, pledge, or deed of trust.
However, if subsequent advances are made on such mortgage, pledge or
deed of trust, additional documentary stamp tax shall be paid which
shall be computed on the basis of the amount advanced or loaned at the
rates specified above: provided, however, that if the full amount of
the loan or credit granted under the mortgage, pledge or deed of trust
is specified in such mortgage, pledge or deed of trust, the documentary
stamp tax prescribed in this section shall be paid and computed on the
full amount of the loan or credit granted."
Sec. 20. Section 196 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 196. Stamp tax on deeds of sale and conveyance
of real property. — On all conveyances, deeds, instruments, or
writings, other than grants, patents, or original certificates of
adjudication issued by the Government, whereby any lands, tenements or
other realty sold shall be granted, assigned, transferred, or otherwise
conveyed to the purchaser, or purchasers, or to any other person or
persons designated by such purchaser or purchasers, there shall be
collected a documentary stamp tax at the following rates:
"(a) When the consideration, or value received or
contracted to be paid for such realty, after making proper allowance of
any encumbrance, does not exceed one thousand pesos, Fifteen pesos
(P15.00).
"(b) For each additional one thousand pesos, or
fractional part thereof in excess of one thousand pesos of such
consideration or value, Fifteen pesos (P15.00).
"When it appears that the amount of the documentary stamp tax payable
hereunder has been reduced by an incorrect statement, of the
consideration in any conveyance, deed, instruments, or writing subject
to such tax the Commissioner, provincial or city treasurer, or other
revenue officer shall from the assessment rolls or other reliable
source of information, assess the property of its true market value and
collect the proper tax thereon."
Sec. 21. Section 197 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 197. Stamp tax on charter parties and similar
instruments. — On every charter party, contract, or agreement for the
charter of any ship, vessel, or steamer, or any letter or memorandum or
other writing between the captain, master, or owner, or other person
acting as agent of any ship, vessel, or steamer and any other person or
persons for or relating to the charter of any ship, vessel, or steamer,
and on any renewal or transfer of such charter, contract, agreement,
letter or memorandum, there shall be collected a documentary stamp tax
at the following rates:
"(a) If the registered gross tonnage of the ship,
vessel, or steamer does not exceed one thousand tons, and the duration
of the charter or contract does not exceed six months, Five hundred
pesos (P500.00); and for each month or fraction of a month in excess of
six months, an additional tax of Fifty pesos (P50.00) shall be paid.
"(b) If the registered gross tonnage exceed one
thousand tons and does not exceed ten thousand tons, and the duration
of the charter or contract does not exceed six months, One thousand
pesos (P1,000); and for each month or fraction of a month in excess of
six months, an additional tax of One hundred pesos (P100.00) shall be
paid.
"(c) If the registered gross tonnage exceeds ten
thousand tons and the duration of the charter or contract does not
exceed six months, One thousand five hundred pesos (P1,500); and for
each month or fraction of a month in excess of six months, an
additional tax of One hundred fifty pesos (P150.00) shall be paid."
Sec. 22. The incremental revenues from the
increase in the documentary stamp taxes under this Act shall be set
aside for the following purposes:
(a) In 1994 and 1995, twenty-five percent (25%)
thereof respectively, shall accrue to the Unified Home-Lending Program
under Executive Order No. 90 particularly for mass-socialized housing
program to be allocated as follows: fifty percent (50%) for
mass-socialized housing; thirty percent (30%) for the community
mortgage program; and twenty percent (20%) for land banking and
development to be administered by the National Housing Authority:
provided, that not more than one percent (1%) of the respective
allocations hereof shall be used for administrative expenses;
(b) In 1996, twenty-five percent (25%) thereof to be
utilized for the National Health Insurance Program that hereafter may
be mandated by law; and
(c) In 1994 and every year thereafter, twenty-five
percent (25%) thereof shall accrue to a Special Education Fund to be
administered by the Department of Education, Culture and Sports for the
construction and repair of school facilities, training of teachers, and
procurement or production of instructional materials and teaching aids;
(d) In 1994 and every year thereafter, fifty percent
(50%) thereof shall accrue to a Special Infrastructure Fund for the
construction and repair of roads, bridges, dams and irrigation,
seaports and hydroelectric and other indigenous power projects:
provided, however, that for the years 1994 and 1995, thirty percent
(30%), and for the years 1996, 1997, and 1998, twenty percent (20%), of
this fund shall be allocated for depressed provinces as declared by the
President as of the time of the effectivity of this Act: provided,
further, that availments under this fund shall be determined by the
President on the basis of equity.
Provided, finally, that in paragraphs b, c, and d of this section not
more than one percent (1%) of the allocated funds thereof shall be used
for the administrative expenses by the implementing agencies.
Sec. 23. The Secretary of Finance shall, upon the
recommendation of the Commissioner of Internal Revenue, promulgate the
necessary rules and regulations for the effective implementation of
this Act.
Sec. 24. All laws, decrees, orders, rules and
regulations, or any part thereof, which are inconsistent with this Act,
are hereby repealed or modified accordingly.
Sec. 25. If for any reason, any section or
provision of this Act is declared to be unconstitutional, the other
sections or provisions hereof which are not affected thereby shall
continue to be in full force and effect.
Sec. 26. This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in at least two
(2) national newspapers of general circulation whichever comes earlier.
Approved: December 23, 1993
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