THENATIONAL INTERNAL REVENUE CODEOF THE PHILIPPINES[Tax Reform Act of 1997]Republic Act No. 8424AN ACT
AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR
OTHER
PURPOSES
TITLE VIIDOCUMENTARY
STAMP TAX
SEC.
173. Stamp Taxes Upon Documents, Loan Agreements, Instruments 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 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 who is not
exempt
shall be the one directly liable for the tax.
SEC.
174. Stamp Tax on Debentures and Certificates of Indebtedness.
- On all 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
(P200), or fractional part thereof, of the face value of such documents.
SEC.
175. Stamp Tax on Original Issue of Shares of Stock. -On
every original issue, whether on organization, reorganization or for
any
lawful purpose, of shares of stock by any association, company or
corporation,
there shall be collected a documentary stamp tax of Two pesos (P2.00)
on
each Two hundred pesos (P200), or fractional part thereof, of the par
value,
of such shares of stock: Provided, That in the case of the
original
issue of shares of stock without par value the amount of the
documentary
stamp tax herein prescribed shall be based upon the actual
consideration
for the issuance of such shares of stock: Provided, further,
That
in the case of stock dividends, on the actual value represented by each
share.
SEC.
176. Stamp Tax on Sales, Agreements to Sell, Memoranda of Sales,
Deliveries
or Transfer of Due-bills, Certificates of Obligation, or Shares of
Certificates
of Stock. -
On all sales, or agreements to sell, or memoranda of sale, or
deliveries,
or transfer of due-bills, certificates of obligation, or shares of
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, certificate of obligation or
stock,
there shall be collected a documentary stamp tax of One peso and fifty
centavos (P1.50) on each Two hundred pesos (P200) or fractional part
thereof,
of the par value of such due-bill, certificate 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, indorsed, or
delivered
in pursuance of such sale or transfer: and, Provided, further,
That in the case of stock without par value the amount of documentary
stamp
tax herein prescribed shall be equivalent to twenty-five percent (25%)
of the documentary stamp tax paid upon the original issue of said stock.
SEC.
177. Stamp Tax on Bonds, Debentures, Certificate of Stock or
Indebtedness
Issued in Foreign Countries. -On
all bonds, debentures, certificates of stock, or certificates of
indebtedness
issued in any foreign country, there shall be collected from the person
selling or transferring the same in the Philippines, such as tax as is
required by law on similar instruments when issued, sold or transferred
in the Philippines.
SEC.
178. Stamp Tax on Certificates of Profits or Interest 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 (P200), or fractional part thereof, of the face
value of such certificate or memorandum.
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 fifty centavos (P1.50).
SEC.
180. Stamp Tax on All Bonds, Loan Agreements, promissory Notes,
Bills
of Exchange, Drafts, Instruments and Securities Issued by the
Government
or Any of its Instrumentalities, Deposit Substitute Debt Instruments,
Certificates
of Deposits Bearing Interest and Others Not Payable on Sight or Demand.
- On
all bonds, loan agreements, including those 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,
deposit
substitute debt instruments, certificates of deposits drawing interest,
orders for the payment of any sum of money otherwise than at sight or
on
demand, 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 (P200), 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 notes 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.
181. Stamp Tax Upon Acceptance of Bills of Exchange and Others.
-
Upon
any acceptance or payment of any bill of exchange or order for the
payment
of money purporting to be drawn in a foreign country but payable in the
Philippines, there shall be collected a documentary stamp tax of Thirty
centavos (P0.30) on each Two hundred pesos (P200), or fractional part
thereof,
of the face value of any such bill of exchange, or order, or the
Philippine
equivalent to such value, if expressed in foreign currency.
SEC.
182. Stamp Tax on Foreign Bills of Exchange and Letters of Credit. -
On all foreign bills of exchange and letters of credit (including
orders,
by telegraph or otherwise, for the payment of money issued by express
or
steamship companies or by any person or persons) drawn in but payable
out
of the Philippines in a set of three (3) or more according to the
custom
of merchants and bankers, there shall be collected a documentary stamp
tax of Thirty centavos (P0.30) on each Two hundred pesos (P200), or
fractional
part thereof, of the face value of any such bill of exchange or letter
of credit, or the Philippine equivalent of such face value, if
expressed
in foreign currency.
SEC.
183. Stamp Tax on Life Insurance Policies. -
On all policies of insurance or other instruments by whatever name the
same may be called, whereby any insurance shall be made or renewed upon
any life or lives, there shall be collected a documentary stamp tax of
Fifty centavos (P0.50) on each Two hundred pesos (P200), or fractional
part thereof, of the amount insured by any such policy.
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 (P4.00), 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.
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 bond 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 (P4.00), or fractional
part
thereof, of the premium charged.
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 of One peso and fifty
centavos (P1.50) on each Two hundred pesos (P200) or fractional part
thereof,
of the capital of the annuity, or should this be unknown, then on each
Two hundred (P200) pesos, or fractional part thereof, of thirty-three
and
one-third (33 1/3) times the annual income. On pre-need plans, the
documentary
stamp tax shall be Fifty centavos (P0.50) on each Five hundred pesos
(P500),
or fractional part thereof, of the value or amount of the plan.
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 on 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 Thirty centavos (P0.30) on each Four pesos (P4.00), or
fractional
part thereof, of the premium charged.
SEC.
188. Stamp Tax on Certificates. -
On each certificate of damages or otherwise, and on every 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 or
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 Fifteen pesos (P15.00).
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 Fifteen
pesos
(P15.00): 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 (P200).
SEC.
190. Stamp Tax on Jai-Alai, Horse Racing Tickets, lotto or Other
Authorized
Numbers Games. -
On each jai-alai, horse race ticket, lotto, or other authorized number
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.
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 documentary stamp tax
of One peso (P1.00), if the value of such goods exceeds One hundred
pesos
(P100) and does not exceed One Thousand pesos (P1,000); Ten pesos
(P10),
if the value exceeds One thousand pesos (P1,000): 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.
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 Fifteen pesos (P15.00).
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).
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 tax of Three pesos (P3.00) for the first Two
thousand
pesos (P2,000), or fractional part thereof, and an additional One peso
(P1.00) 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 said contract or agreement.
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 of 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 (P5,000), Twentypesos (P20.00).
(b) On each Five
thousand
pesos (P5,000), or fractional part thereof in excess of Fivethousand pesos (P5,000), an additional tax of Ten pesos (P10.00).
On any mortgage, pledge,
or deed of trust, where the same shall be made as a security for the
payment
of a 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, 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 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.
196. Stamp tax on Deeds of Sale and Conveyances 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 land, tenement, 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 rates herein below
prescribed,
based on the consideration contracted to be paid for such realty or on
its fair market value determined in accordance with Section 6(E) of
this
Code, whichever is higher: Provided, That when one of the
contracting
parties is the Government the tax herein imposed shall be based on the
actual consideration.
(a) When the
consideration,
or value received or contracted to be paid for such realty aftermaking proper allowance of any encumbrance, does not exceed One
thousand
pesos(P1,000) fifteen pesos (P15.00).
(b) For each
additional
One thousand Pesos (P1,000), or fractional part thereof in excessof One thousand pesos (P1,000) 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,
instrument 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.
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 such 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 onethousand (1,000) tons, and the duration of the charter or contract does
not exceedsix (6) months, Five hundred pesos (P500); and for each month or
fraction
of a monthin excess of six (6) months, an additional tax of Fifty pesos (P50.00)
shall be paid.
(b) If the registered
gross tonnage exceeds one thousand (1,000) tons and does not exceedten thousand (10,000) tons, and the duration of the charter or contract
does not exceedsix (6) months, One thousand pesos (P1,000); and for each month or
fraction
of a monthin excess of six (6) months, an additional tax of One hundred pesos
(P100)
shall be paid.
(c) If the registered
gross tonnage exceeds ten thousand (10,000) tons and the duration ofthe charter or contract does not exceed six (6) months, One thousand
five
hundredpesos (P1,500); and for each month or fraction of a month in excess of
six (6) months,an additional tax of One hundred fifty pesos (P150) shall be paid.
SEC.
198. Stamp Tax on Assignments and Renewals of Certain Instruments.
-
Upon
each and every assignment or transfer of any mortgage, lease or policy
of insurance, or the renewal or continuance of any agreement, contract,
charter, or any evidence of obligation or indebtedness by altering or
otherwise,
there shall be levied, collected and paid a documentary stamp tax, at
the
same rate as that imposed on the original instrument.
SEC.
199. Documents and Papers Not Subject to Stamp Tax. -
The provisions of Section 173 to the contrary notwithstanding, the
following
instruments, documents and papers shall be exempt from the documentary
stamp tax:
(a) Policies of
insurance
or annuities made or granted by a fraternal or beneficiary society,order, association or cooperative company, operated on the lodge system
or localcooperation plan and organized and conducted solely by the members
thereof
for theexclusive benefit of each member and not for profit.
(b) Certificates of
oaths administered to any government official in his official capacity
orof acknowledgment by any government official in the performance of his
official duties,written appearance in any court by any government official, in his
official
capacity;certificates of the administration of oaths to any person as to the
authenticity
of anypaper required to be filed in court by any person or party thereto,
whether
the proceedingsbe civil or criminal; papers and documents filed in courts by or for
the
national, provincial,city or municipal governments; affidavits of poor persons for the
purpose
of provingpoverty; statements and other compulsory information required of
persons
or corporationsby the rules and regulations of the national, provincial, city or
municipal
governmentsexclusively for statistical purposes and which are wholly for the use
of
the bureau or officein which they are filed, and not at the instance or for the use or
benefit
of the personfiling them; certified copies and other certificates placed upon
documents,
instrumentsand papers for the national, provincial, city, or municipal
governments,
made at theinstance and for the sole use of some other branch of the national,
provincial,
city ormunicipal governments; and certificates of the assessed value of lands,
not exceedingTwo hundred pesos (P200) in value assessed, furnished by the
provincial,
city ormunicipal Treasurer to applicants for registration of title to land.
SEC.
200. Payment of Documentary Stamp Tax. -
(A) In General.- The provisions of Presidential Decree No. 1045
notwithstanding,
any person liable to pay documentary stamp tax upon any document
subject
to tax under Title VII of this Code shall file a tax return and pay the
tax in accordance with the rules and regulations to be prescribed by
the
Secretary of Finance, upon recommendation of the Commissioner.cralaw:red
(B) Time for Filing
and Payment of the Tax.- Except as provided by rules and regulations promulgated by
the Secretary of Finance, upon recommendation of the Commissioner, the
tax return prescribed in this Section shall be filed within ten (10)
days
after the close of the month when the taxable document was made,
signed,
issued, accepted, or transferred, and the tax thereon shall be paid at
the same time the aforesaid return is filed.cralaw:red
(C) Where to File.- Except in cases where the Commissioner otherwise permits, the
aforesaid tax return shall be filed with and the tax due shall be paid
through the authorized agent bank within the territorial jurisdiction
of
the Revenue District Office which has jurisdiction over the residence
or
principal place of business of the taxpayer. In places where there is
no
authorized agent bank, the return shall be filed with the Revenue
District
Officer, collection agent, or duly authorized Treasurer of the city or
municipality in which the taxpayer has his legal residence or principal
place of business.
(D) Exception.- In lieu of the foregoing provisions of this Section, the tax may
be paid either through purchase and actual affixture; or by imprinting
the stamps through a documentary stamp metering machine, on the taxable
document, in the manner as may be prescribed by rules and regulations
to
be promulgated by the Secretary of Finance, upon recommendation of the
Commissioner.
SEC.
201. Effect of Failure to Stamp Taxable Document. -
An instrument, document or paper which is required by law to be stamped
and which has been signed, issued, accepted or transferred without
being
duly stamped, shall not be recorded, nor shall it or any copy thereof
or
any record of transfer of the same be admitted or used in evidence in
any
court until the requisite stamp or stamps are affixed thereto and
cancelled.
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