Documentary Stamp Tax

Description

Documentary Stamp Tax 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.

Tax Form

BIR Form 2000 (Documentary Stamp Tax Declaration Return)

Documentary Requirements

1) Photocopy of document(s) to which the documentary stamp shall be affixed, in case of constructive
affixture of Documentary Stamp Tax

2) For metering machine users, a schedule of the details of usage or consumption of

documentary stamp

3) Proof of exemption under special law, if applicable

4) Duly approved Tax Debit Memo, if applicable

Tax Rates

Tax Code Section Document Taxable Unit Tax Due Per Unit % of Unit Taxable Base
Debentures and
P200.00 or Face value of
174 Certificates of P1.50 .75%
fraction thereof Document
Indebtedness
P200.00 or
Original Issue of Shares fraction thereof
of Stock with par value Par value of shares of
2.00 1% stocks actual
175 P200.00 or consideration for the
Original Issue of fraction issuance of shares of
2.00 1%
Shares of Stock thereof based stocks
without par value on actual
consideration
Sales, Agreements to
Sell, Memoranda of
Par value of such
Sales, Deliveries or
P200.00 or due-bills, certificate
176 Transfer of Due-bills, 1.50 .75%
fraction thereof of obligation or
Certificate of
stocks
Obligation, or Shares or
Certificates of Stock
Bonds, Debentures,
Par value of such
Certificate of Stock or P200.00 or
177 1.50 .75% bonds, debentures or
Indebtedness issued in fraction thereof
Certificate of Stocks
foreign Countries
Certificate of Profits or Face value of such
P200.00 or
178 Interest in Property or .50 .25% certificate /
fraction thereof
Accumulation memorandum
Bank Checks, Drafts,
Certificate of Deposit On each
179 1.50
not bearing interest and Document
other Instruments
 Bonds, Loan
Agreements,
Promissory Notes, Bills
of Exchange, Drafts,
Instruments and
Securities Issued by the
Government or any of
its Instrumentalities,
Deposit Substitutes
P200.00 or Face value of the
180 Debt Instrument, .30 .15%
fraction thereof instrument/document
Certificates of Deposit
bearing interest and
others not payable on
sight or demand (except
loan agreement or
promissory notes
exceeding P250,000.00
for personal use or
family use)
Face value of such
Bills of Exchange or bill of exchange or
order drawn in foreign P200.00 or order or the
181 .30 .15%
country but payable in fraction thereof equivalent of such
the Philippines value, if expressed in
foreign currency
Face value of such
bill of exchange or
Foreign Bills of
P200.00 or order or the
182 Exchange and Letter of .30 .15%
fraction thereof equivalent of such
Credit
value, if expressed in
foreign currency
P200.00 or Amount Insured by
183 Life Insurance Policies .50 .25%
fraction thereof the Policy
Policies Of Insurance P4.00 premium or
184 .50 12.5% Premium charged
upon Property fraction thereof
Fidelity Bonds and P4.00 premium or
185 .50 12.5% Premium charged
other Insurance Policies fraction thereof
Capital of annuity, or
Policies of Annuities,
P200.00 or if unknown 33 1/3
186 Annuity or other 1.50 75%
fraction thereof times the annual
instruments
income
P500.00 or Value or amount of
186 Pre-Need Plans .50 .10%
fraction thereof the Plan
P4.00 or fraction
187 Indemnity Bonds .30 7.5% Premium charged
thereof
Certificates of Damage
or otherwise and
Certificate or document
issued by any customs
officers, marine
188 Each Certificate 15.00
surveyor, notary public
and certificate required
by law or by rules and
regulations of a public
office
Warehouse Receipts
189 (except if value does Each Receipt 15.00
not exceed P200.00)
190 Jai-alai, Horse Race P1.00 cost of .10 10% Cost of the ticket
Tickets, lotto or Other ticket and
Authorized Number
Games
Additional
P0.10 on
 every P1.00 or
fraction
thereof if cost
of ticket
exceeds P1.00
Bills of Lading or
Receipts
191 Each Proxy 15.00
(except charter
party)
193 Powers of Attorney Each Document 5.00
First 2,000

For every
Lease and other Hiring
agreements of P1,000 or
memorandum or fractional part 3.00 1.5%
194 contract for hire, use or thereof in
rent of any land or excess of the
1.00 1%
tenements or portions first P2,000
thereof for each year
of the term of
the contract or
agreement
First 5,000

Mortgages Pledges of On each 20.00 .4% Amount Secured

lands, estate, or P5,000 or
195
property and Deeds of fractional part
Trust 10.00 .2% Amount Secured
thereof in
excess of
5,000
First 1,000
Deed of Sale,
Consideration or Fair
instrument or writing For each
15.00 1.5% Market Value,
and Conveyances of additional whichever is higher
196 Real Property (except P1,000 or (if government is a
grants, patents or fractional part 15.00 1.5% party, basis shall be
original certificate of thereof in the consideration)
the government) excess of
P1,000
197 Charter parties and 1,000 tons and P500.00 for the first 6 months
Similar Instruments below PlusP50 each month or fraction
thereof in excess of 6 months

P1,000 for the first 6 months

Plus P100 each month or
fraction thereof in excess of 6
months

1,001 to P1,500 for the first 6

10,000 tons months
Plus P150 each month or
fraction thereof in excess
of 6 months
 Over 10,000
tons

Procedures

File BIR Form No. 2000 in triplicate (two copies for the BIR and one copy for the taxpayer) with the
Authorized Agent Bank (AAB) in the Revenue District where the seller or transferor is registered, for
shares of stocks or where the property is located, for real property. In places where there are no AAB, the
return will be filed directly with the Revenue Collection Officer or Authorized City or Municipal Treasurer.

Submit all documentary requirements and proof of payment to the Revenue District Office having
jurisdiction over the place of residence of the seller.

Deadlines

The Documentary Stamp Tax return (BIR Form 2000) shall be filed in triplicate (two copies for the BIR and
one copy for the taxpayer) within five (5) days after the close of the month when the taxable document
was made signed, issued, accepted or transferred; when reloading a metering machine becomes
necessary; or upon remittance by Collection Agents of collection from sale of loose stamps. The
Documentary Stamp Tax shall be paid upon filing of the return.

Related Revenue Issuances

RR No. 6-2001, RMO No. 8-98, RMO No. 15-2001

Codal Reference

Sec. 173 to Sec. 201 of the National Internal Revenue Code

Frequently Asked Questions

1) Who are required to file Documentary Stamp Tax Declaration Return?

a) In case of constructive affixture of documentary stamps, by the persons making, signing, issuing,
accepting or transferring documents, instruments, loan agreements and papers, acceptances,
assignments, sales and conveyances of the obligation, right or property incident thereto wherever the
document is made, signed, issued, accepted or transferred when the obligation or right arises from
Philippine sources or the property is situated in the Philippines at the same time such act is done or
transaction had;

b) By metering machine user who imprints the Documentary Stamp Tax due on the taxable documents;
and

c) By Revenue Collection Agent, for remittance of sold loose documentary stamps.

Note: Wherever one party to the taxable document enjoys exemption from the tax imposed, the other
party who is not exempt will be the one directly liable to file Documentary Stamp Tax Declaration and pay
the applicable stamp tax.

2) Where is the Documentary Stamp Tax Declaration Return filed?

In the Authorized Agent Bank (AAB) within the territorial jurisdiction of the RDO which has jurisdiction
over the residence or principal place of business of the taxpayer or where the property is located in case
of sale of real property or where the Collection Agent is assigned. In places where there is no Authorized
Agent Bank, the return will be filed with the Revenue Collection Officer or duly authorized City or Municipal
Treasurer where the taxpayer's residence or principal place of business is located or where the property is
located in case of sale of real property or where the Collection Agent is assigned.

3) What are the documents/papers not subject to Documentary Stamp Tax?

 Policies of insurance or annuities made or granted by a fraternal or beneficiary society, order, association or cooperative
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 administered by any government official in his official capacity or acknowledgement by any
government official in performance of his official duty

 Written appearance in any court by any government official in his official capacity

 Certificates of the administration of oaths to any person as to the authenticity of any paper required to be filed in court by
any person or party thereto, whether the proceedings be civil or criminal

 Papers and documents filed in court by or for the national, provincial, city or municipal governments

 Affidavits of poor persons for the purpose of proving poverty

 Statements and other compulsory information required of persons or corporations by the rules and regulations of the
national, provincial, city or municipal government exclusively for statistical purposes and which are wholly for the use of
the Bureau or office in which they are filed, and not at the instance or for the use or benefit of the person filing them

 Certified copies and other certificates placed upon documents, instruments and papers for the national, provincial, city or
municipal governments made at the instance and for the sole use of some other branch of the national, provincial, city or
municipal governments

 Certificates of the assessed value of lands, not exceeding P200 in value assessed, furnished by the provincial, city or
municipal Treasurer to applicants for registration of title to land

4) What are the implications of failure to stamp taxable documents?

 The untaxed document will not be recorded, nor will it or any copy thereof or any record of transfer of the same be
admitted or used in evidence in court until the requisite stamp or stamps have been affixed thereto and cancelled

 No notary public or other officer authorized to administer oaths will add his jurat or acknowledgment to any document
subject to Documentary Stamp Tax unless the proper documentary stamps are affixed thereto and cancelled.