DOCUMENTARY STAMPS TAX
Transactions Subject to DST under Title VII of the NIRC
Nature and Concept
• DST is a tax on documents, instruments, loan
agreements and papers evidencing the acceptance,
assignment, sale or transfer of an obligation, right, or
property incident thereto. [Sec. 173, NIRC]
• DST is actually an excise tax because it is imposed on
the transaction rather than on the document.
• It is levied on the exercise by persons of certain
privileges conferred by law for the creation, revision, or
termination of specific legal relationships through the
execution of specific instruments
• Hence, in imposing the DST, the Court considers not
only the document but also the nature and character of
the transaction is considered. [Phil. Banking Corp. v. CIR,
G.R. No. 170574 (2009)]
• Being an excise tax, it is paid only once. Since DST is not
a tax on income, an exemption from income tax does
not include DST. [BIR Ruling No. DA-106-08, August 4,
2008]
Effect of Failure to Pay the DST (Sec. 201, NIRC)
Failure to stamp a taxable document shall not invalidate
the same. However, it shall not be recorded or admitted
or used as evidence in any court until the requisite stamp
is affixed.
No notary or other officer authorized to administer oaths
shall add his jurat or acknowledgment to the document
unless the proper documentary stamp is affixed thereto
or cancelled.
• Sec 174 – Original issue of shares
• Sec 175 – Sales, Agreements to sell, Memoranda of
Sales, Deliveries, or Transfer of Shares or Certificate of
Stocks
• Sec 176 - Bonds, Debentures, Certificates of Stock or
Indebtedness Issued in Foreign Countries
• Sec 177 - Certificates of Profits or Interest in Property or
Accumulations
• Sec 178 - Bank Checks, Drafts, Certificates of Deposit
not Bearing Interest, and Other Instruments
• Sec 179 – All debt instruments
• Sec 180 - All Bills of Exchange or Drafts
• Sec 181 - Acceptance of Bills of Exchange and Others
• Sec 182 - Foreign Bills of Exchange and Letters of Credit
• Sec 183 - Life Insurance Policies
• Sec 184 - Policies of Insurance Upon Property
• Sec 185 - Fidelity Bonds and Other Insurance Policies
• Sec 186 - Policies of Annuities and Pre-Need Plans
• Sec 187 – Indemnity Bonds
• Sec 188 – Certificates
• Sec 189 – Warehouse Receipts
• Sec 190 – Jai-alai, Horse Race Tickets, Lotto or Other
Authorized Numbers Games
• Sec 191 – Bills of Lading or Receipts
• Sec 192 – Proxies
• Sec 193 – Powers of Attorney
• Sec 194 – Leases and Other Hiring Agreements
• Sec 195 – Mortgages, Pledges, and Deeds of Trusts
• Sec 196 – Deeds of Sale, Conveyances and Donation
of Real Property
• Sec 197 – Charter Parties and Similar Instruments
• Sec 198 – Assignments and Renewals of Certain
Instruments
Persons Liable (RR No. 9-2000)
• In General –
It is imposed against "the person making,
signing, issuing, accepting, or transferring" the document
or facility evidencing the aforesaid transactions.
Thus, in general, it may be imposed on the
transaction itself or upon the document underlying such
act.
Any of the parties thereto shall be liable for the
full amount of the tax due: Provided, however, that as
between themselves, the said parties may agree on who
shall be liable or how they may share on the cost of the
tax.
• Exception –
Whenever one of the parties to the taxable
transaction is exempt from DST, the other party thereto
who is not exempt shall be the one directly liable for the
tax.
Specific Persons Liable to Remit the DST (RR No. 9-2000)
In general, the full amount of DST may be remitted by
any of the party or parties involved to the taxable
transaction, except in the following cases:
• Stamp tax on bonds, debentures, certificates of
indebtedness, deposit substitute, or other similar
instruments. — The tax shall be remitted by the person
who issued the instrument
• Stamp tax on original issue of shares of stock in a
corporation. — The corporation, which issued the share
or shares of stock, shall remit the tax due on the said
issuance. The share of stock is considered issued upon
acceptance by the corporation of the subscriber's
subscription for stock in the corporation, the actual
delivery by the corporation of the certificate evidencing
the share of stock to the contrary notwithstanding.
• Stamp tax on Jai-Alai, Horse Race, Lotto or other
Authorized Numbers Games — The proprietor or
operator shall remit the tax. If such proprietor or operator
is exempt from the tax, he shall collect the tax from the
other party who is not exempt from the tax, and shall
remit the same.
• When one of the parties to the taxable document or
transaction is included in any of the entities enumerated
below, such entity shall be responsible for the remittance
of DST: Provided, however, that if such entity is exempt
from the tax herein imposed, it shall remit the tax as a
collecting agent:
• A bank, a quasi-bank or non-bank financial
intermediary, a finance company, or an insurance, a
surety, a fidelity, or annuity company;
• The proprietor or operator of Jai-alai, Horse-
racing, Lotto and other Authorized Numbers Games, as
provided in these Regulations;
• The Philippine Stock Exchange (PSE), in the
case of shares of stock and other securities traded in the
local stock exchange;
• A pre-need company on sale of pre-need
plans as provided under Section 186 of the Code
• An educational institution in respect of
issuance of taxable certificates (e.g. Diploma, Transcript
of Records, and other documents taxable as certificates
under Section 188 of the Code);
• Warehouse operators in respect of
warehouse receipts under Section 189 of the Code;
• The Corporation vis-a-vis the stamp tax on
"Proxies" in the exercise of the stockholders' voting right,
taxable under Section 192 of the Code (e.g.
appointment of a proxy in the election of the
corporation's members of the Board);
• The transportation contractor vis-a-vis the Bills
of Lading or Receipts taxable under Section 191 of the
Code;
• Franchise grantees and other taxpayers
paying a fixed percentage of the prescribed taxable
base in lieu of all internal revenue taxes;
Filing and Payment of DST
• Tax Returns:
• BIR Form No. 2000
• BIR Form No. 2000-OT
• BIR Form No. 2000-OT (One Time Transactions)
1. Every natural or juridical person, resident or
non-resident, for donation, sale, barter,
exchange or other onerous disposition of
shares of stock in a domestic corporation,
 classified as capital asset, not traded in the
local stock exchange;
2. Every withholding agent/buyer/seller on the
sale, transfer or exchange of real property
classified as capital asset. The “sale” includes
pacto de retro sale and other forms of
conditional sale; and
3. Every withholding agent/buyer/seller on the
sale, transfer or exchange of real property
other than capital asset.
4. Every natural or juridical person, resident or
non-resident, for donation of real properties
For all other transactions subject to DST, use BIR Form No.
2000
Deadline for Filing and Payment:
• Within 5 days after the close of the month when the
taxable document was made, signed, accepted, or
transferred.
• The tax thereon shall be paid at the same time the
aforesaid return is filed. (RR No. 6-2001)
• Note: Some Taxation books and reviewers state that
the DST deadline is “10 days”, instead of 5 days, as stated
in Section 200(B) of the Tax Code.

• Question: Is there a conflict between the Tax Code and RR No. 6-2001:

• Answer: No. Section 200(B) of the Tax Code begins with the qualifying phrase, “Except as provided by the rules and
regulations promulgated by the Secretary of Finance, upon recommendation of the Commissioner.”

• It means that the tax filing and payment deadlines for DST may be changed through a revenue regulations which is
promulgated by the Finance Secretary upon the recommendation of the BIR Commissioner. Since the deadline in the Tax
Code has been superseded by RR No. 6-2001, the “5 days” deadline should be followed.

• This is an exemption to the general rule that when there is a conflict between the specific Tax Code provision vs. any
revenue issuance, the Tax Code should prevail