Section 174.

Stamp tax on Original Issuance of share of stocks

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 peso (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.

Document Tax due per unit % of unit Taxable base

Share issuance with par value P2.00/P200 1% Par value

Share issuance with no par P2.00/P200 1% Actual consideration

value received

Stock dividend P2.00/P200 1% Actual value represented

by share

Section 175. Stamp Tax on Sales, Agreements to sell, Memoranda of sales, Deliveries or
transfer of shares or Certificates Stocks.

Document Tax due per unit % of unit Taxable base

Sales,
Agreements to sell, P 1.50/200 0.75% Par value of such stocks
Memoranda of sales,
Deliveries or transfer of shares
or Certificates Stocks
DST paid upon the
Stock without par value 50% original issuance of said
stocks

Section 176. 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.
 Comparison of DST rules on shares and debt instrment

Domestic Foreign
Shares of stocks Taxable Exempt
Issue of stocks Taxable Taxable
Transfer of stocks
Debt instrument
Issue of debt instrument Taxable Exempt
Assignment of debt instruments Taxable Taxable

Document Tax due per unit % of unit Taxable base

Stamp Tax on Bonds,
Debentures, P .75 / P200 .375% Par value
Certificate of Stock or
Indebtedness Issued in Foreign
Countries