General Principles Tobacco Products Alcohol Petroleum Products

Miscellaneous Articles Mineral Products Sweetened Beverages Cosmetic Procedures

 General Principles

NATURE OF EXCISE TAX: PURPOSE ON IMPOSITION:

• Indirect TAX
• To curtail consumption of certain commodities
• Imposed only on limited and specific types of goods
which are considered harmful to the individual as
• Imposed on harmful or non- essential goods manufactured or
well as to the community as the whole.
produced in the Philippines for domestic sale, consumption or for any
• To raise revenue
other disposition including imported goods

CLASSIFICATIONS OF EXCISE TAX: GOODS SUBJECT TO EXCISE TAX:

• Specific Tax • Alcohol Products
○ excise tax based on weight or volume capacity or any other • Tobacco Products
physical unit of measurement • Petroleum Products
ex. Specific excise tax for per piece of cigars • Miscellaneous imported articles and non-
essentials goods
• Ad-valorem Tax • Mineral Products
○ excise tax based on selling price or other specified value of goods • Sweetened Beverage
ex. 20% of wholesale price imposed on importation of non • Cosmetics Services
essential goods.

• Note: to compute for the excise tax, the VAT is not included in the tax base.
However to compute for VAT, excise tax is included in the tax base.
 Tobacco Products
Tax Rates and Bases:

Excise Tax Rate

Tobacco Products per kg.
2022 2023 2024 onwards

(a) Tobacco twisted by hand or reduced into a condition to be

consumed in any manner other than the ordinary mode of drying and P2.50 P2.60
curing
4% increase every
(b) Tobacco prepared or partially prepared with or without the use of
P2.50 P2.60 year thereafter
any machine or instruments or without being pressed or sweetened
(c) Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and
P2.50 P2.60
sweepings of tobacco

4% increase every
Chewing tobacco, unsuitable in any manner P2.13 P2.22
year thereafter

Twisted tobacco Chewing tobacco

 Tobacco Products
Tax Rates and Bases:

Excise Tax Rate

Cigars Per Piece
2022 2023 2024 onwards
(a) Ad valorem tax based on net retail price per cigar (excluding the
20% 20% 20%
excise tax and VAT)

(b) In addition to ad valorem tax herein imposed, a specific tax per 5% increase every
P7.10 P7.38
cigar shall be imposed based on the following rate. year thereafter

• Net retail price’ shall mean the price at which the cigar is sold on retail in at least five (5) major supermarkets in Metro Manila, excluding the amount intended to cover the
applicable excise tax and the value-added tax.

Per Pack
Cigarettes
2022 2023 2024 onwards

Cigarettes Packed by Hand* P55.00 P60.00 5% increase every

Cigarettes Packed by Machine P55.00 P60.00 year thereafter

• Duly registered packed by hand shall only be packed in 20’s (twenties) and other packaging combinations of not more than 20 (twenty).

• Cigarettes packed by hand shall refer to the manner of packaging of cigarette sticks using an individual person’s hands and not through any other means
such as mechanical device, machine or equipment.
 Tobacco Products

Tax Rates and Bases:

Excise Tax Rate
Heated Tobacco Products
2022 2023 2024 onwards
Per pack of 20 units or any packaging combinations of not more than 5% increase every
P30.00 P32.50
twenty (20) units year thereafter

• Heated tobacco products (HTPs) are tobacco products that require the use of an electronic device to heat a stick or pod of compressed tobacco.

Excise Tax Rate

Vapor Products
2022 2023 2024 onwards

Nicotine Salt (per milliliter) P47.00 P52.00 5% increase every

Conventional 'Freebase' or ‘Classic' Nicotine (per 10 milliliter) P55.00 P60.00 year thereafter

• Vapor products produce aerosol by heating a liquid solution, which is inhaled as an aerosol.
 Tobacco Products

FILING:
The return shall be filed by the:
1. Manufacturer or producer of locally manufactured or produced tobacco products;
2. Wholesaler, manufacturer, producer, owner or operator of the redrying plant, as the case may be, with respect to the
payment of inspection fee on leaf tobacco, scrap, cigars, cigarettes and other tobacco products;
3. Owner or person having possession of tobacco products which were removed from the place of production without the
payment of excise tax.

* For imported products, it shall be paid by the importer or owner before removal of the product from customshouse

TIME AND MANNER:

For each place of production, a separate return shall be filed and the excise tax due shall be paid before removal of the
tobacco products from the place of production with any Authorized Agent Bank (AAB) located within the territorial jurisdiction
of the Revenue District Office where the taxpayer is required to register.
 Alcohol
Tax Rates and Bases:

Excise Tax Rate

Alcohol Products
2022 2023 2024 2025 onwards
Distilled Spirits

(a) Ad valorem tax based on the net retail price (NRP) per
22% 22% 22% 22%
proof liter (excluding the excise tax and VAT)

6% increase
(b) Specific Tax Per Proof Liter P52.00 P57.00 P66.00 for every year
thereafter

• “Spirits or distilled spirits” is the substance known as ethyl

alcohol, ethanol or spirits of wine, including all dilutions,
purifications and mixtures thereof, from whatever source, by
whatever process produced, and shall include whisky,
brandy, rum, gin and vodka, and other similar products or
mixtures

• Proof spirits is liquor containing ½ of its volume alcohol of a

specific gravity of 0.7939 at 15 degrees centigrade, A proof • Net retail price’ shall mean the price at which the distilled spirits is sold on retail in
liter means a liter of proof spirits. at least five (5) major supermarkets in Metro Manila, excluding the amount
intended to cover the applicable excise tax and the value-added tax.
 Alcohol
Tax Rates and Bases:
Per Liter
Wines
2022 2023 2024 2025 onwards
6% increase
Wines P56.18 P59.55 P63.12 for every year
thereafter
6% increase
Fermented Liquors P39.00 P41.00 P43.00 for every year
thereafter

• Wines are alcoholic beverages produced by fermentation

without distillation from the juice of any kind of fruit.

• Fermented liquors refers to alcoholic beverage produced

by fermentation without distillation of grains or malt, which
include beer, lager, ale, porter, and other similar products
but exluding tuba, basi, tapoy and other similar domestic
fermented liquor.
 Alcohol

FILING:
The return shall be filed by the:
1. Manufacturer or producer of locally manufactured or produced alcohol products
2. Owner or person having possession of the alcohol products which were removed from the place of production without the
payment of excise tax.

* For imported products, it shall be paid by the importer or owner before removal of the product from customshouse

TIME AND MANNER:

For each place of production, a separate return shall be filed and the excise tax due shall be paid before removal of the
alcohol products from the place of production with any Authorized Agent Bank (AAB) located within the territorial jurisdiction
of the Revenue District Office where the taxpayer is required to register.
 Petroleum Products

Products Base Rate

Lubricating oils and greases, including but not limited to base stock for lube oils and greases, high
vacuum distillates, aromatic extracts and other similar preparations, and additives for lubricating oils and per liter and kilogram P10.00
greases, whether such additives are petroleum based or not
Locally produced or imported oils previously taxed but subsequently reprocessed, re-refined, recycled per liter and kilogram P10.00

Processed gas, per liter of volume capacity. Per liter P10.00

Waxes and petrolatum per kilogram. Per kilogram P10.00

Denatured alcohol to be used for motive power, per liter of volume capacity. Per liter P10.00

Asphalts, per kilogram Per kilogram P10.00

Naphtha, regular gasoline, pyrolisis gasoline and other similar products of distillation Per liter P10.00

Unleaded premium gasoline Per liter P10.00

Kerosene, per liter of volume capacity Per liter P5.00

Aviation turbo jet fuel, aviation gas Per liter P4.00

Kerosene, when used as aviation fuel Per liter P4.00

Diesel fuel oil, and on similar fuel oils having more or less the same generating power Per liter P6.00

Liquefied petroleum gas used for motive power Per kilogram P6.00

Bunker fuel oil, and on similar oils having more or less the same generating power Per liter P6.00
 Petroleum Products

Products Base Rate

Petroleum coke Per metric ton P6.00

Liquefied petroleum gas Per kilogram P3.00

Naphtha and pyrolysis gasoline, when used as a raw material in the production of petrochemical
products or in the refining of petroleum products, or as replacement fuel for natural-gas-fired-combined Per Liter P0.00
cycle power plant, in lieu of locally-extracted natural gas during the non-availability thereof

Liquefied petroleum gas, when used as raw material in the production of petrochemical products Per kilogram P0.00
Petroleum coke, when used as feedstock to any power generating facility Per metric ton P0.00
 Petroleum Products

FILING:
The return shall be filed by the:
1. Manufacturer or producer of locally manufactured or produced petroleum products;
2. Any person engaged in reprocessing, refining or recycling of petroleum products previously taxed;
3. Importer or purchaser who resells or uses kerosene as aviation fuel;
4. Any person using denatured alcohol for motive power; and
5. Owner or person having possession of petroleum products which were removed from the place of production without the
payment of excise tax

* For imported products, it shall be paid by the importer or owner before removal of the product from customshouse

TIME AND MANNER:

For each place of production, a separate return shall be filed and the excise tax due shall be paid before removal of the
petroleum products from the place of production with any Authorized Agent Bank (AAB) located within the territorial
jurisdiction of the Revenue District Office where the taxpayer is required to register.
 Automobiles

Definition:

● any four (4) or more wheeled motor vehicle regardless of seating
capacity
● propelled by gasoline, diesel, electricity or any other motive
power
● Hybrid electric vehicle shall mean a motor vehicle
powered by electric energy, with or without provision for
off-vehicle charging, in combination with gasoline,
diesel or any other motive power.

● for taxation purposes, automobile subject to excise tax does not

include:

Bus Jeepney Single cab chassis Toyota Prius

P2.25Million

Trucks/Cargo Van Special purpose Purely electric

including pick ups Vehicle vehicle
Automobiles

Tax Rates and Bases:

Purely Electric
Manufacturer/ importer’s Normal Hybrid
Vehicle and
SP, net of excise and VAT Tax Rate Vehicles
Pickups
600,000 and below 4% 2%

Over 600,000 to P1Million 10% 5%

Over P1Million to P4Million 20% 10%

EXEMPT
Over P4Million 50% 25%

● Hybrid electric vehicle shall be subject to 50% of the applicable taxes.

● Purely electric vehicles and pickups shall be exempt from excise tax on automobiles.
 Automobiles

FILING:
The return shall be filed by the:
1. Manufacturer, producer or assembler of locally manufactured/ produced/assembled automobiles;
2. Buyer or transferee of automobile not previously taxed and subsequently sold or transferred by the tax-exempt entity-seller;
and
3. Owner or person having possession of the above articles which were removed from the place of production without the
payment of tax.

* For imported products, it shall be paid by the importer or owner before removal of the product from customshouse

TIME AND MANNER:

For each place of production, a separate return shall be filed and the excise tax due shall be paid before removal of the
petroleum products from the place of production with any Authorized Agent Bank (AAB) located within the territorial
jurisdiction of the Revenue District Office where the taxpayer is required to register.
Non-Essential Goods
Tax Rates and Bases:
Inclusions

20%
Jewelry (real or imitations)
Pearls, precious and semi- precious stone and imitations thereof
Opera glasses
Lorgnettes
Perfumes and toilet waters
Yachts and other vessel intended for pleasure or sports
Wholesale
price or the
value of
importation
used by the
BOC in
determining
tariff and
custom duties,
net of excise
and VAT.
 Non-Essential Goods

FILING:
The return shall be filed by the:
1. Manufacturer or producer of locally manufactured or produced non-essential goods such as jewelries, perfumes, toilet water,
yachts and other vessels intended for pleasure or sports;

* For imported products, it shall be paid by the importer or owner before removal of the product from customshouse

TIME AND MANNER:

For each place of production, a separate return shall be filed and the excise tax due shall be paid before removal of the
petroleum products from the place of production with any Authorized Agent Bank (AAB) located within the territorial
jurisdiction of the Revenue District Office where the taxpayer is required to register.
 Mineral Products

Definition:

● Minerals – all naturally occurring inorganic substance whether solid, liquid and gaseous or any
intermediate state.

● Mineral Products – things produced and prepared in any marketable state by simple treatment processes
as washing and drying but without undergoing any chemical change or process or manufacturing.

● Quarry Resources – any common stone or mineral substance as the Director of Bureau of Mine and
Geosciences may declare (e.g. marble, granite, volcanic cinders, basalt, tuff and rock phosphate)

● Gross Output – actual market value of minerals or mineral products or of bullion from each mine or
mineral land operated as a separate entity without any deduction from mining, milling or refining (including
all expenses incurred to prepare the said minerals in a marketable state), as well as transporting, handling
or marketing or any other expenses.
 Mineral Products

Tax Rates and Bases:

Product Excise Tax Date of Effectivity
Php 50/metric ton 1 January 2018
Domestic and imported coal and coke Php 100/metric ton 1 January 2019
Php 150/metric ton 1 January 2020
Locally extracted or produced nonmetallic minerals 4% based on the actual market value of the
1 January 2018
and quarry resources gross output thereof at the time of removal
Locally extracted natural gas and liquefied natural gas Exempt 1 January 2018
4% based on the value used by the Bureau of
Customs (BOC) in determining tariff and
Imported nonmetallic minerals and quarry resources 1 January 2018
customs duties, net of excise tax and value-
added tax
Locally extracted or produced copper, gold, chromite 4% based on the actual market value of the
1 January 2018
and other metallic minerals gross output thereof at the time of removal
4% based on the value used by the BOC in
Imported copper, gold, chromite and other metallic
determining tariff and customs duties, net of 1 January 2018
minerals
excise tax and value-added tax
6% of the fair international market price
Indigenous petroleum thereof, on the first taxable sale, barter, 1 January 2018
exchange or such similar transaction
 Mineral Products

FILING:
The return shall be filed by the:
1. Owner, lessee, concessionaire or operator of the mining claim;
2. First buyer, purchaser or transferee for local sale, barter, transfer or exchange of indigenous
petroleum, natural gas or liquefied natural gas; and
3. Owner or person having possession of the minerals and mineral products which were mined, extracted or quarried without
the payment of excise tax

* For imported products, it shall be paid by the importer or owner before removal of the product from customshouse

TIME AND MANNER:

For each place where the minerals are mined, extracted or quarried, a separate return shall be filed and the excise tax due
shall be paid upon removal from the locality where the minerals are mined or extracted with any Authorized Agent Bank
(AAB) located within the territorial jurisdiction of the Revenue District Office where the taxpayer is required to register.

In the case of locally produced or extracted minerals or quarry resources where the mine site or place of extraction is not the
same as the place of processing or production, the return shall be filed with and the excise tax paid to the RDO having
jurisdiction over the locality where the same are mined, extracted or quarried; provided, however, that for metallic minerals
processed abroad, the return shall be filed and the tax due thereon paid to the RDO having jurisdiction over the locality
where the same are mined, extracted or quarried.

On locally produced or extracted metallic mineral or mineral products, the person liable shall file a return and pay the tax
within fifteen (15) days after the end of the calendar quarter when such products were removed subject to the filing of a
bond in an amount which approximates the amount of excise tax due on the removals for the said quarter.
 Sweetened Beverage
Tax Rates and Bases:
Definition:

● non- alcoholic beverage in liquid, powdered or

concentration form, sold pre-packed and sealed ₱6.00 ₱12.00 EXEMPT
per Liter per Liter
● contain caloric and non- caloric sweeteners

Inclusions Exclusions
purely high
purely purely
Sweetened juice drinks x Sweetened beverages for fructose corn
Sweetened tea export caloric and coconut sap
syrup or with
x Beverages sweetened non-caloric sugar and
Carbonated beverages caloric and
using coconut sap sugar sweeteners steviol
Flavored water and steviol glycosides non-caloric
or mix glycosides
Energy and sports drinks x All milk products sweeteners
Cereal and grain x 100% natural fruit/
beverages vegetable juices
Other powdered drinks x Meal replacement and
not classified as milk, juice, medically indicated
tea and coffee beverages
Other non-alcoholic that x Coffee products
contain added sugar
 Sweetened Beverage

1.) Carbonated Beverages 2.) Powdered Juice

● Dulce Manufacturing Corp. will remove from the place
of production 100 cases of Super Cola using HFCS and
non caloric sweetener. Each case contains 6 bottles of
1.5 liters each.
● Sweety import corp. will remove from customs custody
50 cases of Four Seasons Powdered Juice using caloric
and non-caloric sweetener containing 144 packs by 25
grams. Each 25 grams can make 1Liter (per serving
suggestion appearing on the label)

No. of cases 100 No. of cases 50

(x) no. of bottles per case 6 (x) no. of packs per case 144
Total no. of bottles 600 Total no. of packs 7,200
(x) content per bottle 1.5L (x) content per bottle 1L
Total volume in Liters 900L Total volume in Liters 7,200L
(x) specific tax rate P12.00 (x) specific tax rate P6.00
Total ET to be paid before removal P10,800.00 Total ET to be paid before removal P43,200.00
 Sweetened Beverage

FILING:
The return shall be filed by the:
A. For Locally Manufactured Sweetened Beverages
1. All Manufacturers of sweetened beverages; and
2. Owner or person having possession of sweetened beverages which were removed from the place of manufacture without the
payment of excise tax.

B. For Imported Sweetened Beverages

1. All Importers of Sweetened; and
2. Owner or person having possession of imported sweetened beverages which were removed from customs custody without the
payment of the excise tax.

TIME AND MANNER:

For each place of production, a separate return shall be filed and the excise tax shall be paid before removal of the
sweetened beverages from the place of production.
 Cosmetic Procedures

Definition:
Tax Rates and Bases:
● Invasive cosmetic procedures
5%
▪ directed solely towards improving, altering, or enhancing the
patient's appearance and do not meaning fully promote the
of Gross Receipts
(net of excise
EXEMPT
proper function of the body or prevent or treat illness or disease and VAT)

Inclusions Exclusions procedures

necessary to
Invasive cosmetic Non-invasive cosmetic ameliorate a
procedures procedures derived from deformity arising
performance from congenital or
developmental
liposuction x Botox/Dysport of invasive defect, injury from
breast augmentation x Thermage cosmetic an accident or
breast reduction x Lasers and Light services trauma, or
Treatments disfiguring disease,
buccal fat reduction
tumor or infection
buttocks augmentation x Body Treatments and
(non- invasive
Contouring Procedures procedures)
hair restoration/ transplant
x Cleanings and Facials
rhinoplasty (nose) x Peels
otoplasty (ear) x Injectables and Weight
 vulvovaginal surgery Management Treatment
Cosmetic Procedures

● To improve her body shape, Starlet S engaged the services of Dok

Salamat, a well known cosmetic surgeon in the country, to perform
a liposuction procedure on her thighs and Dok Salamat charged
Starlet S the amount of P50,000.00 inclusive of 12% VAT for the
service to be rendered.

Computation:

Contract Price (inclusive of 12% VAT) P50,000.00

Price (net of 12% VAT, excise tax base) P44,642.85
Add: 5% excise tax (44,642.85 x 5%) P 2,232.15
12% VAT (44,642.85x12%) P 5,357.15
Total amount to be collected from customer P52,232.15
* Represents the excise tax to be withheld and remitted by the service provider to the BIR
Cosmetic Procedures

Persons Liable:

● doctor/clinic/hospital who performed the procedure (issued the OR)

● tax shall be passed on to client

Time, place and manner of filing of return

● monthly return
● within 10 days following the close of the month
● BIR Form No. 1620-XC Final Withholding Tax of Excise Tax on Cosmetic
Procedures as prescribed under Revenue Memorandum Order (RMO) No. 9-
2018 will be replaced by BIR Form 2200-C.
● Effective May 18, excise taxpayers must use BIR Form No. 0605 – Payment
Form, indicating alphanumeric tax code (ATC) “XC010” and Tax Type “XC.”
● Return is filed together with Summary of Invasive Cosmetic Procedures
Performed
 General Principles
TAX OBJECT:
• excise tax levied on documents, instruments, loan agreements and
papers evidencing the acceptance, assignment, sale or transfer of
an obligation, rights, or property incident thereto
TAX LIABILITY:
• tax is paid by the person making, signing, issuing, accepting or
transferring the documents. However, whenever one party to the
taxable document enjoys exemption from the tax, the other party
thereto who is not exempt shall be the one directly liable for the
tax.
FAILURE TO PAY:
• failure to stamp a taxable document shall not invalidate the same
• it shall not be recorded (i.e. in the Registry of Deeds) or admitted
or used as evidence in any court until the requisite stamp is affixed
thereto and cancelled
• 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 and cancelled
CLASSIFICATIONS :
• Specific Tax
○ DST is based on a per instrument basis
• Ad-valorem Tax
○ DST is based on a fixed percentage
• Graduated Tax
○ DST is based on an identified base which is taxed
at different
graduated rates
ACCOUNTING
If considered as ordinary and necessary in the
conduct of business: could be included as part of
itemized deduction from business income
In case of capital asset transactions: could be offset
against the SP in determining gain or loss upon sale
 Documentary Stamp Tax

DST Rates and Tax Bases

RA 10001 Train Law
Section Current Description Tax Base
(2010-2017) (2018)
Par value; actual
consideration if no
0.50% 1%
174 Original issue of shares of stock* par; actual value of
(P1.00/P200) (P2.00/P200)
each share if stock
dividends
Sales, agreements to sell, memoranda of
0.375% 0.75%
sales, deliveries or transfer of shares or Par Value
(P0.75/P200) (P1.50/P200)
certificate of stock
175
Stock issued without par value DST paid on the 25% Selling price, 50%`
original issue of fair market
Traded through local stock exchange shares of stock Exempt
value or zonal Exempt
Bonds, debentures, certificate of stock or 0.50% value, 1%
176 Face Value whichever is
indebtedness issued in foreign countries (P1.00/P200) (P2.00/P200)
higher
Certificate of profits or interest in property or
177 Face Value 0.25% 0.50%
accumulation

* DST tax on issuance of shares is due when shares are “issued” whether they are fully paid or not.
 Documentary Stamp Tax

DST Rates and Tax Bases

RA 10001 Train Law
Section Current Description Tax Base
(2010-2017) (2018)
Banks checks, drafts, certificates of deposit
178 Per instrument P1.50 P3.00
not bearing interest and other instruments
0.375% 0.75%
179 Debt instruments* Issue price
(P0.75/P200) (P1.50/P200)
All bills of exchange or drafts (between points 0.15% 0.30%
180 Face Value
within the Philippines) (P0.30/P200) (P0.60/P200)
Upon Acceptance of bills of exchange and 0.15% 0.30%
181 Face Value
others (P0.30/P200) (P0.60/P200)
Selling price,
fairthe
* Debt instruments with terms less than one (1) year, market
DST to be collected shall
be proportional in amount in accordance with the value or of
ratio zonal
its term in number of
value,
365 days. Provided further that only one DST shall be imposed on either loan
agreement, promissory notes issued to secure such whichever
loan. is
higher

* Debt instrument shall mean instruments representing borrowing and lending

transactions including but not limited to debentures, certificates of indebtedness,
due bills, bonds, loan agreements, including those signed abroad wherein the
object of contract is located or used in the Philippines, etc.
 Documentary Stamp Tax
DST Rates and Tax Bases
RA 10001 Train Law
Section Current Description Tax Base
(2010-2017) (2018)
Foreign bills of exchange and letters of 0.15% 0.30%
182 Par value
credits* (P0.30/P200) (P0.60/P200)
Life insurance policies
a) Amount of insurance does not exceed
Exempt Exempt
P100,000.00
b) P100,001.00 but does not exceed
P10.00 P20.00
P300,000.00
c) P300,001.00 but does not exceed
183 Premium/ amount of P25.00Selling price, P50.00
P500,000.00
insurance fair market
d) P500,001.00 but does not exceed value or zonal
P50.00 value, P100.00
P750,000.00
whichever is
e) P750,001.00 but does not exceed
P75.00 higher P150.00
P1,000,000.00
f) Amount of insurance exceeds P1,000,000.00 P100.00 P200.00

* Letter credits- a letter issued by a bank to another bank (typically in a

different country) to serve as a guarantee for payments made to a specified
person under specified conditions.
 Documentary Stamp Tax
DST Rates and Tax Bases
RA 10001 Train Law
Section Current Description Tax Base
(2010-2017) (2018)
12.50% 12.50%
184 Policies of insurance upon property Premium
(P0.50/P4.00) (P0.50/P4.00)
Fidelity bonds and other insurance 12.50% 12.50%
185 Premium
policies (P0.50/P4.00) (P0.50/P4.00)
0.25% 0.50%
Policies of annuities
Face value (P0.50/P200) (P1.00/P200)
186
premium 0.25% 0.25%
Policies of pre- need plans
(P0.50/P200) (P0.50/P200)

*Fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a
result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the
dishonest acts of its employees.
 Documentary Stamp Tax
DST Rates and Tax Bases

RA 10001 Train Law

Section Current Description Tax Base
(2010-2017) (2018)
Bills of Lading or receipts (except charter party)*

191 a. Not exceeding P1,000 P1.00 P2.00

Value
b. Value exceeding P1,000 P10.00 P20.00
Per
192 Proxies P15.00 P30.00
instrument
Per
193 Powers of attorney P5.00 P10.00
instrument
Selling price,
fair first
PHP3.00 for the marketPHP6.00 for the first
valuefor
2,000 + PHP1.00 or zonal
2,000 + PHP2.00 for
194 Leases and other hiring agreements Value value,
every 1,000 every 1,000
whichever
thereafter is thereafter
higher
*for any goods, merchandise, or effects shipped from one port or place in the PH to another port or place in the PH
(except on ferries across rivers), or to any foreign port
*freight tickers 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.
 Documentary Stamp Tax

DST Rates and Tax Bases

RA 10001 Train Law
Section Current Description Tax Base
(2010-2017) (2018)

P20.00 for the first 5,000 of the P40.00 for the first 5,000 of the
195 Mortgages, pledges and deeds of trust Amount secured amount secured+ PHP10.00 on amount secured+ PHP20.00
every 5,000 thereafter on every 5,000 thereafter

Consideration or FMV 1.50% 1.50%

196 Deeds of sale and conveyances of real property*
whichever is higher (P15.00/P1,000) (P15.00/P1,000)

Charter parties and similar instruments registered tonnage

P500 + an additional tax of PHP1,000 + an additional tax

P50 for each month or fraction of P100 for each month or
a. Does not exceed 1,000 tons Selling price,
of a month in excess of 6 fraction of a month in excess
197 months fair market of 6 months
Gross tonnage value or zonal
P1,000 + an additional tax value,
of PHP2,000 + an additional tax
b. exceeds 1,000 tons but not exceed 10,000 tons
P100 whichever is of P200
higherPHP3,000 + an additional tax
PHP1,500 + an additional tax
c. exceeds 10,000 tons
of P150 of P300
Same base as original
198 Assignments and renewals of certain instruments
instruments

* transfers exempt from donor’s tax under Section 101 (a) and (b) of
the Tax Code, as amended by the TRAIN Law are exempted from DST.
 Documentary Stamp Tax
Exempt from DST under Section 199 (a) to (n)

Current Description

Policies of insurance or annuities made or granted by a fraternal or beneficiary society, order, association or cooperative
a. company, operated on the lodge system or local cooperation plan and organized and conducted solely by the
members thereof for the exclusive benefit of each member and not for profit.

Certificates of oaths any government of official in his official capacity; affidavits of poor persons for the purpose of proving
poverty; statements and other compulsory information required of persons or corporations for statistical purposes;
b.
certificates of the assessed value of lands not exceeding P200 in assessed value furnished by the provincial, city or
municipal treasurer to applicants for registration of title of land.

Selling price,
Borrowing and lending of securities executed under the Securities Borrowing and Lending Program fair market
of a registered
c. value or zonalcertain conditions
exchange, or in accordance with regulations prescribed by the appropriate regulatory authority under
value,
whichever is
Loan agreements or promissory notes, the aggregate of which does not exceed P250,000 or any higher
such amount as may be
determined by the Secretary of Finance, executed by an individual for his purchase on installment for his personal use or
d.
that for his family and not for business or resale, barter or hire of a house, lot, motor vehicle, appliance or furniture under
certain conditions
 Documentary Stamp Tax
Exempt from DST under Section 199 (a) to (n)

Current Description

e. Sale, barter or exchange of shares of stock listed and traded through the local stock exchange

Assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or continuance of any agreement,
f. contract, charter, or any evidence of obligation or indebtedness, if there is no change in the maturity date or remaining
period of coverage from that of the original instrument.

g. Fixed income and other securities traded in the secondary market or through an exchange.

k. Bank deposit accounts without a fixed term or maturity Selling price,

fair market
value orofzonal
All contracts, deeds, documents, documents and transactions related to the conduct of business the Bangko Sentral
l. ng Pilipinas value,
whichever is
higher
m. Transfer of property pursuant to Section 40 (C) (2) of the National Internal Revenue Code of 1997, as amended

Interbank call loans with maturity of not more than seven (7) days to cover deficiency in reverses against deposit liabilities
n.
including those between or among banks and quasi-banks.
T
A
X

R
E
T
U BIR 2000:
Monthly Documentary Stamp Tax Return
R
N
 Guidelines and Instructions on
BIR Form 2000- DST Return

Who are required to file?

T • The return shall be filed with the Authorized Agent
• In the case of constructive affixture of documentary
A stamps, by the person making, signing, issuing, accepting, or Bank (AAB) within the territorial jurisdiction of the
Revenue District Office which has jurisdiction over the
X transferring documents, instruments, loan agreements and
papers, acceptances, assignments, sales and conveyances
residence or place of business of the taxpayer or where
the collection agent is assigned. In places where there
of the obligation, right or property incident thereto wherever
are no AABs, the return shall be filed directly with the
the document is made, signed, issued, accepted or
R transferred when the obligation or right arises from Philippine
Revenue Collection Officer (RCO) within the Revenue
District Office which has jurisdiction over the residence
sources or the property is situated in the Philippines at the
E same time such act is done or transaction had; or place of business of the taxpayer or where the
collection agent is assigned. sale), or every installment
T • By a revenue collection agent for remittance of sold loose
payment made (for installment sale).

U documentary stamps.

R
When and where to file?
N Attachment Required
• filed within ten (10) days after the close of the month when
the taxable document was made, signed, issued, accepted 1. In case of constructive affixture of documentary
or transferred or upon remittance by revenue collection stamps, photocopy of the document to which the
agents of collection from the sale of loose documentary documentary stamp shall be affixed;
stamps. 2. Duly approved Tax Debit Memo, if applicable;
3. Proof of exemption under special laws, if applicable
T
A
X

R
E
BIR 2000-OT:
T DST Return (One Time Transaction)
U
R
N
 Guidelines and Instructions on
BIR Form 2000-OT DST Return

Who are required to file?

T • filed in triplicate by the following person making, signing,
A issuing, accepting or transferring the document or facility
evidencing transaction:
X In places where there are no AAB’s, the return shall be
1. Every natural or juridical person, resident or non-resident, for
sale, barter, exchange or other onerous disposition of shares of
R stock in a domestic corporation, classified as capital asset , not
traded in the local stock exchange;
E 2. Every withholding agent/buyer/seller on the sale, transfer or
• The return shall be filed with and the tax paid to the
AAB within the territorial jurisdiction of RDO where the
seller/transferor is required to be registered or where
the property is located in case of sale of real property.
filed directly with and tax paid to the Revenue Collect
ion Officer (RCO) or duly Authorized City or Municipal
Treasurer within the RDO where the seller/transferor is
required to be registered or where the property is
located in case of real property.

T exchange of real property classified as capital asset . The “sale”

includes pacto de retro sale and other forms of conditional sale;
U Attachment Required
R 3. Every withholding agent/buyer/seller on the sale, transfer or
exchange of real property classified as ordinary asset. 1. Photocopy of the document to which the
N • Whenever one party to the taxable document enjoys
documentary stamp shall be affixed;
2. Original copy of duly approved Tax Debit Memo, if
exemption from the tax herein imposed, the other party thereto applicable;
who is not exempt shall be the one directly liable for the tax. 3. Proof of exemption under special laws, if applicable.
4. Proof of payment of documentary stamp tax paid
upon the original issue of the stock, if applicable.
When and where to file and pay?

• filed and the tax paid within ten (10) days after the close of
the month when the taxable document was made, signed,
issued, accepted or transferred.