October 2019 OTHER PERCENTAGE TAXES ("OPT") By Atty. C. Llamado In lieu ofthe VAT, OPTs are imposed on the following personstunsactions: 1) Section 116: Tax on Persons Exempt from VAT Persons subject: Persons who engage in VATable sales or leases of properties, or services in the course of trade or business: '8) Whose gross sales or receipts < P3,00,000; AND b) Arenot VAT-registered. Tax: 3% of quarterly gross sales or receipts (also called gross receipts tax (GRT)) Persons exempt from the 3% GRT: 8) Self-employed individuals and professionals availing ofthe 8% tax on gross sales and/or receipts and other non-operatng income; b) Cooperatives, except Duly registered cooperatives which transac business with members and non-member snd with accumulated eserves and undivided net savings of more than Ten Milion Pesos (10,000,000.001 sll he subject to the percentage tax on all sales of goods end/or ©) Fees, per diems, allowance, and other income received by corporate direstors of which they are not employees. ©) Marginal income earners or individuals who are selfemployed and deriving gross salesteceipts < P100,000 during any 12-month period, ©) Persons who are VAT-registered, regardless of level of sales. 1) Persons whose line of business is non-exempt (ftom VAT) and are NOT VAT-tegistered but whose gross annual sales or receipts > P3,000,000. 2) Section 117: Common Carrier's Tax = %tax on domestic cariers and keepers of garages Persons subject: '8), Lessors of cars for rent or hire driven by the lessee; ') Transportation contactors inelading persons who transport passengers for hire; end ¢) Other domestic earrirs by land for the transport of passengers; end 4) Keepers of garages. ped Persons: 2) Bance owners 1) Owners of animal-drawn two-wheeled vehicles. i‘October 2019 vided the ‘Tex: 9% quaeny gros sles or esp om the wanspot of pasongess, povided iyo recs ae > nium levels provid by Inv The fable blow provides the Sinn quate eve Domestie Carter Jeep for ire: 1) Provincial 2) Manila and other cites Pobite Uity Bu 1) Not exceeding 30 passengers 2) Exceeding 30 but not exceeding SO passengers 3)_ Exceeding SO passengers 3) Section 118: % Tax on International Carrlers (Foreign Carriers) Persons subject: (@) Intemational ois currers doing btsicess in the Philipines; and (b) luterational shipping ceiers doing, business in te Patippines. Tax: 3% of quately gioes receipts from the transport of garga from the Philippines to another coun. ! | I oat, Seger i pe Poreiga Coxp | ' FenVAT No Ec Som VAT, No . ot Cargo Domenic Corp. | O's WAT, WOE LL. Yorvign Corp. OPT HIB Note: Offline carters, véich sell tickets (a) covering off-line fighus"soynges? or (b) flights for voyages of other carriers, are not considered engaged in Dusiness as an "tf there is reciprsiy or a treaty 2 if there is ecipoeity oF wizeaty. > Oftline flightsvoysgss cefe to Hightsoyugee outside the Philipines. and which do not foush any port the Philipines.‘October 2019 {international cerier inthe Philippines, and therefore are exempt ftom the OPT under Section 118, 4) Section 119: Franchise Tax Persons Subject: (@) Radio and/or television broadcasting companies whose annual gross receipts of the preceding year do not exceed Ten Million Pesos (10,000,000), and which did ‘not choose to be registered under the VAT system; and (©) Gas and water uiliten, Tax: Francine Orr 1D Radio or tevision broadcasting with gris [3% of gost reels ceived fom Oe Basis snnual receipts < P10 M. red by the a granting the franchise BH Gas and water wiles She of grove receipe drved rom te basin lam granting the franchise 3) PAGCOR T5% of gross revenues from gaming operations 5) Section 120: Overseas Communications Tax = Tax on gverseas dispatch, message, or conversation originating from the Philippines by telephone, telegraph, telewriter exchange, wireless, and other communication ‘equipment or service Ne : Domestic calls are subject to VAT. Persons Subject: Payor of the service ‘The payee (personlentity rendering the service) collects and remits the tox to the BIR within 20 days afer the end of each quarter. ‘Tax: 10% of the amount paid forthe service. Exemptio ‘The tx shall not apply to amounts paid by: 1) The Government, 2) Embassies or consular offices ofa Foreign Government, 3) Intemational organizations pursuant to intemational agreements; 4) News services: amounts paid for messages from any newspaper, press association, radio or television newspaper, broadcasting, or newsticker Services to any other newspaper, press association, radio or television newspaper broadcasting agency, newsticker service, of to a bona fide correspondent, The messages must deal exclusively with the collection ‘x dissemination of news itemsOctober 2019 6) Section 121: Tax on Banks and Non-Bank Financial Intermediaries Performing Quasl-Banking Functions (“GRT") Persons Subject: @) Banks‘; and ) Non-bank financial intermediaries performing quasi-banking functions.” 8) On interest, commissions, discounts from lending activities as well as income from financial leasing, on the basis of the remaining maturities of instruments from which such receipts are derived: 1) Maturity period is five (5) years or less 5% 2) Maturity period is more than five (5) years % 'b)_ On dividends and equity shares and net income of subsidiaries ©) On royalties, rentals of property (real or personal), profits from % exchange, and all other items treeted as gross income under Section 32 of the Tex Code 4) On net wading gains within the txable year on foreign ™% currency, debt securities, derivatives, and other similar financial instruments Note: BSP is not a bank nor a non-bank financial intermediary. In the performance of its proprietary functions, it shall not be subject to the percentage tax. However, it ean subject to VAT if it engages in any of the transactions under Section 105 of the Tax Code. 7) Section 122: Tax on Finance Companies Persons Subject: (I) Finance companies; and shall refer to entities engaged in the lending of funds obtained in the form of +The term “noe-bank financial intermediaries” shall refer to persons or entities whose principal functions include te lending, investing or placement of funds ar evidences of indebtedness or equity ‘deposited with them, acquired by them, or otherwise coursed through them, either for their own, ‘account oF forthe account of others. : ‘The tem “quasi-banklng activities” shall refer to the borrowing of funds from twenty (20) or more personal or corporate lenders at any one tine, through the issuance, endorsement, or ecceptance of ett instruments of aay kind other than deposits for the borrower's own account, or through the issuance of cerifcates of assignment or similar instruments, with recourse, or of repurchase agreements for purposes of relending or purchasing receivables ané other simile obligations.* October 2019 1 (@) Other non-bank financial intermediaries not performing quasi!banking functions, doing business in the Philippines : The term “finance companies” shall refer to corporations except banks, investment houses, savings and loans associations, insurance companies, cooperatives, and other financial institutions organized or operating under other special laws, which are primarily organized for the purpose of extending credit facilities to consumers and to industrial, commercial, ‘oc agricultural enterprises, by direct lending or by discounting or factoring commerci ‘papers or accounts receivables or by buying and selling contacts, leases, chattel mortgages, or other evidences of indebtedness, or by financial leasing of movable as well as immovable ropertes. Tae term “other non-bank financial intermediaries” above shall include pawnshops and ‘op-stock savings and loan associations, Tax: 8) On interest, commissions, discounts from lending ectivities as well a income from financial leasing, on the basis of the remaining maturities of instruments from which such receipts are derived: 1) Maturity period is five (5) years or less 5% 2) Maturity period is more than five (5) years % ) On gross receipts derived from interest, commissions, 3% iscounts, and all other items treated as gross income under the Tax Code 8) Section 123: Tax on Life Insurance Premiums (Premium Tax) Person subject: Any person/entity offering life insurance in the Philippines, except purely ‘cooperative compenies or associations. Tex: 2% of gross premiums collected, ss premiums” shall include re-issuance fees, reinstatement fees, renewal fees, penalties id to the insurance company in connection with the insurance policy, and premiums on ‘health and acc ance Elomi Tei penis wt ey fen be ein (1) Premiums received by purely cooperative companies or associations; (@) Premiums refunded within six (6) months after payment on account of ejection of risk, or retumed for any other reason to a person insured; (3) Premiums paid upon reinsurance by « company that has already paid the tax (@) Premiums collected or received by aly branch of a domestic corporation, firm, of association doing business olisde the Philippines on account of | 5October 2019 any life insurance ofthe insured who is a non-resident, if any tx on such premium is imposed by the foreign country where the branch is csiablished; (6) Premiums collected or received on account of any reinsurance, if the insured, in case of personal insurance, resides outside the Philippines, if ‘any tax on such premium is imposed by the foreign country where the Original insurance has been issued or perfected; and (6) Portion of the premiums collected or received by the insurance companies on variable contracts in excess of the amounts necessary to insure the lives of the variable contract overs. (D Management fees, rental income, ot any other income eared by the life insurance company from services wiich ean be pursued incependently of the insurance business act () Investment income eamed by the life ineurance company from investing the premiums; Note: Ifiavestment income arises irom furds solicited for purposes other than for the payment of premiums, the same shall be subject to the GRT under Section 121 of the Tax Code, 9) Section 124: Tax on Agents of Foreign insurance Companies Persons Subject: (2) Every fire, matine, o: aviscellaneous insurance agent authorized under the Insurance Code to procure polices of insurance as be muy have erevicusly been legally authorized to teansect, ow nists Incited inh 5 fin companies not ‘authorized to traaszet business inthe Peilippines; an ign (@) Owners of propery who vba insiwarce d'zaety with foreign corapanies, Tax: 9) For fire, marine, or miscellaneous insurance 44 of tou premiums collected agent ) For owners of property who obtiiss insurasce direcly with foreign companies ‘Exemption: Does not ply to reinsurance promiuens. 10) Section 125: Amusement TaxesJ October 2019 | Perions Subject: Propristr,lsse, or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, jai-alai, and race ‘racks. Tax: Amusement Place Tx 1) Cockpits 18% of gross receipts 2) Cabarets 18% of gross receipts 3) Night or day clubs 18% of gross receipts 4) Boxing exhibitions 10% of gross receipts 5) Professional basketball games 13% of gross receipts ©) Jaialai 30% of gross receipts 7) Race tracks 30% of gross receipts Notes: (@) Gross receipts includes admission charges, rents, and income from television, radio, and motion picture rights. (b) Ifthe proprietor, lessee, or operator of the amusement place also operates, atthe same ‘time within the premises, a bar or restaurant, the receipts of the bar or restaurant sbal ‘form part of gross receipts subject to the amusement tax above. (©) If such bar or restaurant in (b) is operated by a third person, the gross receipts thereof ‘hall be subject ether to VAT or to the 39% OPT under Section 116, (@) Amusement places include videoke bars, karaoke bars, karaoke televisions, karaoke boxes, and music lounges. Exemption: Boxing exhibition where: () The world or oriental title is at stakes (2) One of the contenders is a Filipino citizen; and ) Is promoted by a Filipino citizen, or a by a corporation/association which is 2 60% owned by Filipinos. i | 11) Section 126: Winnings (from Horse Races) Persons subject: ‘Persons who win horse rece; and » ‘Owners of winning race horses. 1) Winnings in horse races Ten percent (10%) of winnings or dividends" 2) Winnings from double, Four percent (4%) of winnings or \ | | ferecasvquizetls and ifecta basin “Svgenis" | ! ,October 2019 horse races 3) Owners of winning race borses ‘Ten percent (10%) ofthe prizes Notes: (@) The tax in (1) and (2) above shell be based on the actual amount paid for every winning ticket after deducting the cost of the ticket (b) The tax shal be withheld by the operator, manager, oF person in charge of the horse aves before paying the dividends or prizes. 12) Section 127: Stock Transaction Tax (a) Sale, Barter, or Exchange of Shares Listed and Traded Through the Local ‘Stock Exchange (Sec. 127(A), NIRC) Persons Subject: “The tax is imposed on the seller or transferor of ths shares of stock, whether individual (citizen of alien), eersocation (domestic o7 foreign), or other taxpayer such as estates, rust funds, and peasion tnd However, the following are net liable for the tax un such sales, namely: (@) Dealers in seowitiee: (b) Investors ia shares of stock in a nmctual fund company upor redemption of said sanzes of stock: in @ mutual fund, (©) All other persons, whethe: naterol or ju from nations) intemal revenue taxes under existing iavestrace who are specifically exempt centives and ‘of 1%) ef the yross selling price Duty of the Stockbroker: ‘To withhold the ‘ax and remit the same to the AAB ot RDO where the broker is registered within $ days trun the dete of collection, () Sale or Exchange Through Initial Public Offe Clasely-Held Corporations (Sec. 127(B). NIRC) “Closely eld corporation” ng ("IPO") of Shares of Stock in sans any corporatinn at least fifty percent (50%) in value of the outstanding capita! stock, or al least tity percent (50%) of the total combinad voting power of all classes of stock entticd to vote, is owned directly ot indiretly by or for not nore than twenty (20) icv itualsOctober 2019 Note: For purposes of determining stock ownership, stock shall be considered covned (a) indirectly thru a corporation, partnership, estate, or trust (b) directly or indirectly thru family members including the spouse, and (¢) ‘ir options to acquire stock. Initial Public Offering (“IPO”) - refers to a public offering of shares of stock ‘made for the first time inthe local stock exchange. Primary offering — refers to the original sale made to the investing public by the issuer corporation of ts unissued shares of stock. ‘Secondary offering — refers to an offer for sale to the investing public by the ‘existing shareholders of their securities which is conducted during an IPO, or after an PO. Follow-on/follow-through offering of shares ~ refers to an offering of shares 10 the investing public subsequent to an IPO. Persons Subject ‘The taxis imposed on: 8) the issuing corporation in a primary offri ) the selling shareholder of the shares ina secondary offering during an IPO. Note: Any initial public offering and secondary offering of shares of stock {issued by a real estate investment trust (“REIT”) or derivatives thereof shall be exenapt from the stock transaction tax imposed under Section 127 (B)of te Tax Code. Rate and Basis of the Tax ‘The tax shall be based: @) onthe gross selling price or gross value in money of the shares of stock sold (&) in accordance with the proportion of shares of stock sold to the total outstanding shares of stock after the listing in the local stock exchange: ‘Tax Rate Up to twenty-five percent (2594) 4% ‘Over twenty-five percent (25%) but not over thirty- % three and ove-third percent (33 1/3%) (Over thirty-three and one-third percent (33 1/3%) 1% ‘Who pays the tax? (@) In the case of « primary offering, the corporate issuer shall file the return, and pay the corresponding tax within thity (30) days from the date of listing of the shares of stock in the local stock exchange.October 2019 (b) In the case of secondary offering, it shall be the duty of the stockbroker who ‘effected the sale to collet the tax, and remit the same to the BIR within five (5) banking days from the date of collection. WE Note: The stock transaction tax under Section 127(A) and (B) shall not be deductible for, income tox purposes. RETURN AND PAYMENT OF PERCENTAGE TAXES: 1) In general, every person subject to the percentage taxes imposed under Title V of the Tax Code shall file a quarterly return (BIR Form No. 2551Q) of the amount of his gross sales, receipts, or earings and pay the tax due thereon within twenty-five (25) day’ after the end of each taxable quarter. 2) Person Retsing from Business ‘Any person retiring from a business subject to the percentage tax shall notify the nearest internal revenue officer, file his return, and pay the tax due thereon within twenty (20) days after closing his business. 3) For eFPS filers, the Quarterly Percentage Tax Returns (BIR Form No. 2551Q) shall be ‘efled in a consolidated return on a staggered basis according to the taxpayer's industry classification, The aggregate percentage taxes due shall be e-paid within twenty-five (25) days after the end of each taxable quarter subject to the pertinent provisions of Section 128(A) of the Tax Code BE othe : ; 8) Overseas communication tax under Section 120 of the Tax Code — the tax shall be paid | to the person rendering the service, and such person is required to collect and pay the tax | ‘within twenty (20) days after the end of each quarter; g in banks, non-bank financial interm prrcfarmigg aussie banking functions, and finance companies under Sections 121 and 122 of the Tax Code “the tax shall be paid monthly within twenty (20) days following the end of the taxable ‘month, | b) Gross receipts tax on. intermediaries I ©) Amusement tax under Section 125 of the Tax Code ~ the tax shall be payable within ‘merry (20) days after the end ofeach Quarter; 4) Tax on winnings under Section 126 of the Tax Code ~ the tax shall be withheld by the ‘operator, manager or person in charge of the horse races, and must be remitted to the BIR, ‘within twenty (20) days from the date of withholding; 10| October 2019 ©) Stock transaction tax under Section 127 (A) ofthe Tax Code; 4) Stock transaction tax (IPO tax) under Section 127 (B) of the Tax Code; ®) Advance OPT - 1) Sale of Sugar A seller of sugar (other than “raw cane sugar”) whose gross annual sales do not exceed 3.0 Mullion and who is not VAT-registered, shall pay a percentage tax equivalent to 3% of gross monthly sales or receipts. In general, such percentage tax shall be paid in advance by the owner or seller before any warehouse receipt or ‘quedans are issued, or before the sugar is withdrawn fiom any sugar refinery or mill, 2) Transport of naturally grown and planted timber products The advance percentage tax shall be determined by applying the rate of 3% on the ‘corresponding value per cubic meter of the different species of naturally grown and plated timber products in accor.‘ance with the schedules issued by the BIR: 3) Sale of jewelry, gold, end other ntetalic minerals fo non-resident individuals not Change in Status (6) Inthe case of «person whose VAT regsvtation is cancelled, and who becomes lable 9 | the tx imposed in Section 116 of the Tan” Code, the tx shall accrue from the cate of Sanceiion, and sal be pid in aceordane with the provisions of Section 128 or the (©) For those who are not VAT-registered and who have chosen to be taxed under the 8% ‘come tax rate option, but have subsequently bevorne liable to VAT:* | (G) He is requized to update his registration immediate ly within the month following the ‘month he exceeded the VAT threshold. And he shay! be liable to VAT prospectively ‘lating 08 the first day of the month following the month when the threshold is reached. @) The taxpayer shall pay the required OPT covering the surgical and dental instruments; silver-plated wares, frames, oF ‘mountings for spectacles or eyeglasses; and ental gold or gold alloys and other precious metals used in filing, ‘mounting, ofiting the teth. (Opere glasses and lorgnetes: Perfurnes and toilet waters" Yoehts and other esses intended for pleasure or sort, ” 5 a » MINERAL PRODUCTS: 9) Noo-metaie miretas and quarry resources such as marble, gran, voleani cinders, bass tif and feck phosphate; 10) Metalic minera 8) Copper and other metalic minerals, )_ Gold and chan Indigenous pewolcum including. locally fextraied inineral il, hydrocarbon gas ‘bitumen, crude asphal nneral gas. Expt 2) Loealiy-extracted natural gas; and b) Locally-extracved iqueied natural gas » NON-ESSENTIAL SFRVICES! ~ 5% tax on ios reveips. net of excise tax ond VAT, derived from the performance of imvasive commetic surgscssprvcedues, ev body ennancemeats for | srstbsticccemstic ovenuacs ‘The following shail be exempt fran the 5% excise tx: |G) Procedures to amaliowte a deformity | aring from or direct elated to a | conpenital oF developmental defect oF abnormality, a personal iyury resulting from en accident cr trauma, o« disfiguring discase, cmos, virus, ot infetion and (&) Casos oe treaments covered by the [ational Health Insirance Program. 2 Added by TRAIN. 2 The excize ax cal be sed om the flowing shod Tsing purely ealris swee'ene, pigely norealoric seen, oF mancare 01 | F both Using purely hih-fruc:se cor syrup, or in combination with any ears | Pi2éter ‘ornon-calere sweetener ‘Using purely coconut sap sugoripuraly stevie! glyeosies _ Bxamt | “ Added by TRAIN.October 2019 Gross Selling Price of Goods Subject to Ad Valorem Tax 1) The price, excluding the VAT, at which the goods are sold at wholesale or through sales agents; 2) Ifthe manufacturer also sells the goods at wholesale in another establishment of which he is the owner, the wholesale price in the latter establishment shall be the gross selling price; 3) If the price is less than the cost of manufacturing plus expenses, the gross selling price shall equal such cost + expenses + a proportionate margin of profit (> 10% of the cost + expenses). Persons Subject to Excise Tax 1) Domestic Products 8) Generally, the manufacturer or producer of the domestic products. shall file the return and pay the excise taxes before the removal of the domestic produets from the place of production; or ») Owner or person having possession of domestic products wihich were removed fom place of production witout payment ofthe exeise tax; or ©) The first buyer, purchaser, or transferee for local sale or transfer in the case of indigenous petroleum, natural ga, of liquefied natural gas; 2) Imported Products 4) The importer shall ile the return and pay the tax before removal of the imported goods fromthe customhouse or customs custody of 44) The person whois found in possession of articles which are exempt from excise taxes ‘other than those legally entitled to exemption, Credit for Excise Taxes on Goods Actually Exported ‘Excise taxes paid on goods actually exported shall be credited or refunded upon submission of proof of actual exportation and upon receipt ofthe foreign exchange payment, Provided: Excise tax on mineral products (except coal and coke) shall not be ereditable nor refundable even if the mineral products are actually exported, Changes under the TRAIN: 1) Cigarettes packed by hand, and packed by machines follow the same schedule of specific ‘excise taxes 2) Excise taxes on the following products were increased: (@) Cigaretes packed by hand, and cigazetes packed by machine;October 2019 (b) Manufactured oils and other fuel oils,” (©) Locally manufactured and imported automobiles; (@ Domestic or imported coal and coke; (©) Non-metallic and metallic minerals; ® Indigenous petroleum. 3) The following are exempt from excise tax: (@) Neptha and pyrolysis gasoline used as raw material in the production of petrochemical products or in the refining of petroleum products, or as replacement fuel for natural-gas-fired-combined cycle power plant; (b) Production of petroleum products, whether or not they are classified as products of distillation, and for use solely for production of gasoline; (©) Liquefied petroleum gas when used as a raw material in the production of petrochemical products; (4) Petroleum coke, when used as feedstock. to any power generating facility: ©P is heups* 4) The Secretary of Finance shall require tbe use of an official fuel marking or similar technology on petroleum products refined, manufactured, or imported in the Philippines, ‘and that are subject to the payment of taxes and duties. ise fuel, Tiquefied petroleum gas. Kerosene, abd bunker fuel ol which were all not taxed before the ffectivity ofthe TRAIN are now taxed under the TRAIN, ‘Hybrid vehicles shall be subject to 50% ofthe applicable excise tax ates on automobiles.DOCUMENTARY ‘STAMP TAX (DST) | + An excise tax, a national tax whose purpose isto reise revenue; ~ Deductible for income tax purposes + A ‘ax on transactions effected within the Philippines. A tax upon documents, instruments, loan agreements, papers evidencing acceptances, assignments, sales and ‘transfers of obligations, rights or properties, andi It is levied and collected whenever the document is made, signed, accomplished. tof the tion so had or issued, accepted, of transferred when the obligation or right arises ftom Philippine sources, or the property is situated inthe Philippines. Documents and Papers Subject to pst? Documents and Papers Not Subject to DsT “stockfndebtednes issued in foreign countries ©) Sales, agreements to sel, memoranda of sales; deliveries or transfer of shares or ‘certiientes of stock 4) Certificates of profits or interest in property or accumulations ©) Bank cheeks, drafts, certificates of deposit ot bearing interest, and other instruments 1) Deb instrament £) Bills of exchange or drafts; 4) Acceptance of ills of exchange; 4) Foreign bil of exchange and eters of credit |) Life insurance policies; 1) Insurance upon propery 1) Fidelity bonds and othe insurance policies >) Policies of annuities, and preneed plans 1) Indemnity Bonds ©) Warebouse receipts ) Jaa, horse race ickets, lotta or other authorized numbers games 4) Bil of tading or reels *) Proxies 5) Powers ofattoraey 1 Leases and other hiring agreements 8) Mortgages, pledges, and deeds of trast ¥) Deeds sale and conveyances of real propery” 1) Charter partis and sar iatromients 2) Assigaments and renewals of certain inseuments 9) Certicates ') Policies of Tasurance or annuities made Uy w frateral or beneficiary society operated on the lodge system or local sooperation plan: b)Cenifiates of oaths administered to any government official in his official capacity ©) Papers filed in cour by or for the nations, provincial, or municipal governments 4) Affidavits to prove poverty: ©) Statements and other compulsory information required of persons exclusively for statistical [purposes and for the use ofthe government 1) Cemiticates ofthe assessed value of lands F200 2) Borrowing and lending of securities executed under the Securities Borrowing and Landing, Program (°SBL") of a registred exchange by) Loan agreements, < 250,000 executed by an individot forthe purchase of @ house and lt, motor vehicle, appliance, or furniture for personal use i) Sale, barter, or exchange of shares listed and traded ‘through the local stock exchange 4) Assignment or tansfer of mongage, lease, oF insurance policy if thee is no change in the maturity date K) Fixed income and other securities traded in the secondary market or through an exchange; 1D Derivatives ‘)_Inerbranch or interdeparmental advances within the same legal eagiy 8) Forebesrances ising. from sales or service ©) Bank deposit accounts without «fixed term P) Contracts, deeds, documents and. transactions related tothe conduct of business ofthe BSP Transfer of property pursuant to twice ©) Ieerbranch call ane with maturity <7 days over deine’. Tservesieling ose Stein oramong banks nd gua banks for the transactions in BOLD. Trensfers exempt from donor's tx are exermpted from DST.October 2019 Persons Subject: ‘The person making, signing, issuing, accepting, or transferring the document. When one party enjoys exemption, the other party who is not exempt shall be the one directly Hable for the tax. ‘Time of Filing and Payment: Generally, the tax retum shall be filed within 5 days after the close of the month when the document was made, signed, accepted or transfered, Place of Filing and Payment: 1) Authorized agent bank (AAB) within the tervitoral jurisdiction of the RDO which has Jurisdiction over the residence or principal place of business of the taxpayer, of 2) If there be no AAB. with the Revenue Distict 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, Modes of Payment: 1) The tax due om the reiur is paid af the tre the returr filed oF 2) The tas may be paid tizough purchase end actual affixture of the DSTs on the document; or 3) By imprinting the DST, trough a DST metering machine, on the taxable document. Effect of Failure to Stamp a Taxable Document: 1) Shall not be soe ort 2) Shall not be at’nted o* used in evidence in any 3) The notary pubic shall uot add Fi ty 2 or acknovledgemzst to the document Until the DSTs are paidDocumentary Stamp Tex (DST) ‘Documents/Transactions Tax Rate Tn general ‘Original issue of Shares of Stocks P.2.00/ P 200, ‘Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of Shares or Certificates of | P 1.50/P 200 Stock with par value Tn case Stock without par value ‘30% of DST paid on original issue ‘Bonds, Debentures, Certificates of Stock or Indebiedness issued in Foreign Countries ‘Same tax rate on similar instrument ‘Certificates of Profits or Interest in Property oF Pi.007P 200 Accumulations ‘Bank Checks, Draiis, Cerificates of Deposit not Pa.OGipiece of check, drat, ‘Bearing Interest, and Other Instruments certificate, te Original issue of all Debt Instruments P 1.50/P 200 of issue price ora fraction of 365 days for instruments with term of less than one (1) year ‘Acceptance of Bills of Exchange or Order drawn ina | 0.60/ 200 Foreign Country but payable in the Philippines Foreign Bills of Exchange and Letters of Credit P0607 P 200 Life Insurance Policies amount: Does not exceed P 100,000 Exempt Exceeds P 100,000 but does not exceed P 300,000 | P_ 20.00 Exceeds P 300,000 but does not exceed P $00,000 | P_ 50.00 Exceeds P $00,000 but does not exceed P_ 750,000 | P 100.00 Exceeds P 750,000 but does not exceed P 1,000,000 | P 150.00 Exeseds P 1,000,000 P 200.00 Policies of Insurance upon Property P0.50/ P40 Fidelity Bonds and Other Insurance Policies P0.50/ 4.00 P 100/200 of the premium or Policies of Annuities installment payment on Contract Price collected ‘Fre-need Plans P 0.40/ P 200 of the premium or contribution collected Tndemnity Bonds P030/P 4.00 Certificates Sec. 188 of the Tax Code) 30.00/eertticate ‘Warehouse Receipts 'P 30.00 w/ value above P 300 Tai-ala, Horse Race Tickets, Lott, or Other P 1,00 and below [P-0:20 “Authorized Number Games ‘Above P 1,00 P0.207P 1.00, Bills of Lading or Receipts P 10010? 1000 1 P-2.00 ‘Above P 1000 | P 20.00 Proxies for Voting at Any Election 30,00/issued prox Powers of Attomey P30.00fpower of Attomey Leases and Other Hiring Agreements FP 2,000, P 6.00 excess P2.007P 1,000,“Mortgages, Pledges and Deeds of Trust TP 3000 [P 40.00 Tn excess 20.007 5000 ‘On Assignments & Renewals of Certain Instruments ‘Same rate as original instrument Bills of Exchange or Drafts P06 on each P 200 ‘On Deeds of Sale, Conveyances, and Donations of First P1,0000f [P15 Real Property value received ‘Note: Transfers exempt from the donor's ax shullbe |Inexcessof | P15/PI,000 exempt fom the DST imposed under Section 196. | P1,000 ‘Chavier Panes and Siler Instrument i gross tonnage ofthe Ship, Vessel or Steamer is: 1*6 months P 1,000 1,000 tons and below Inexcess +P 100/month 1,001 to 10,000 tons 1*6 months P 2,000 Inexcess +P200/month Over 10,000 tons 1.6 months 3,000 Inexcess +P 300/month