SEC. 180.

  Stamp Tax on All Bills of Exchange or Drafts.

SEC. 181.  Stamp Tax Upon Acceptance of Bills of Exchange and Other

SEC. 182.  Stamp Tax on Foreign Bills of Exchange and Letters of Credit

What is a bill of exchange?

A bill of exchange is a written order used primarily in international trade that binds one party
to pay a fixed sum of money to another party on demand or at a predetermined date. Bills of
exchange are similar to checks and promissory notes.

Types of Bill of exchange

 Inland bills are drawn between two parties that are located or reside in the same
country and thus are made payable in the same country.
Seller (Philippines) payee (Philippines)

 Foreign bills are drawn and involve parties in two different countries.

Seller (USA) Payee (Philippines)

 Tax due Tax due in Taxable basis
percent
All Bills of Exchange or Drafts Face value of any such
.60 / 200 .3% bill of exchange or draft

Acceptance of Bills of Exchange or   Face value of such bill of

order for the payment of money .60 / 200 .3% exchange or order or the
purporting to be drawn in a   foreign Philippine equivalent of
country but payable in the Philippines such value, if expressed
in foreign currency

Face value of such bill of

Foreign Bills of Exchange and Letters .60 / 200 .3% exchange or letter of
of Credit credit or the Philippine
equivalent of such 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 one-time documentary stamp tax at the
following rates:

Taxable basis
Life Insurance Not more than exempt
Policies P100,000.00
Amount of
Insurance
P100,000.00 to
P300,000.00 20.00

P300,001 to
P500,000.00
50.00

P500,001 to P750,000
100.00
 P750,001 to 150.00
P1,000,000.00

If the amount of
insurance exceeds 200.00
P1,000,000

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

Policies Of Insurance .50 / 4 pesos Or 12.5% Premium charged

upon Property

SEC. 185. Stamp Tax on Fidelity Bonds and Other Insurance Policies

 A fidelity bond is a form of business insurance that offers an employer protection

against losses that are caused by its employees' fraudulent or dishonest actions. This
form of insurance can protect against monetary or physical losses.

 Other insurance policies are other than life and property insurance

Fidelity Bonds and .50 / 4 pesos Or 12.5% Premium charged

other Insurance
Policies
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. "

Tax Code Document Taxable Unit Tax Due Per % of unit Taxable
Section Unit Base
186 Policies of P200.00 or 1.00 .5% Premium or
Annuities or thereof installment
other payment or
instruments contract
price
collected

Pre-need Plans P200.00 or .40 .20% Premium or

thereof contribution
collected