Documentary Stamp Tax – FYI

Documentary Stamp Tax

For most transactions with regards to a sale of real estate property, the Documentary Stamp Tax is for the account of the Buyer.  Both Capital Gains Tax and Documentary Stamp Tax are the initial payments that need to be made to the Bureau of Internal Revenue when processing the Certificate Authorizing Registration required by the Register of Deeds to transfer Title into the name of the Buyer / New Owner.

 DescriptionDocumentary 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 FormBIR 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

174Debentures and Certificates of IndebtednessP200.00 or fraction thereofP1.50.75%Face value of Document
175Original Issue of Shares of Stock with par valueOriginal Issue of Shares of Stock without par valueP200.00 or fraction thereofP200.00 or fraction thereof based on actual consideration2.002.001%1%Par value of shares of stocks actual consideration for the issuance of shares of stocks
176Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of Due-bills, Certificate of Obligation, or Shares or Certificates of StockP200.00 or fraction thereof1.50.75%Par value of such due-bills, certificate of obligation or stocks
177Bonds, Debentures, Certificate of Stock or Indebtedness issued in foreign CountriesP200.00 or fraction thereof1.50.75%Par value of such bonds, debentures or Certificate of Stocks
178Certificate of Profits or Interest in Property or AccumulationP200.00 or fraction thereof.50.25%Face value of such certificate / memorandum
179Bank Checks, Drafts, Certificate of Deposit not bearing interest and other InstrumentsOn each Document1.50
180Bonds, Loan Agreements, Promissory Notes, Bills of Exchange, Drafts, Instruments and Securities Issued by the Government or any of its Instrumentalities, Deposit Substitutes Debt Instrument, 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)P200.00 or fraction thereof.30.15%Face value of the instrument/document
181Bills of Exchange or order drawn in foreign country but payable in the PhilippinesP200.00 or fraction thereof.30.15%Face value of such bill of exchange or order or the equivalent of such value, if expressed in foreign currency
182Foreign Bills of Exchange and Letter of CreditP200.00 or fraction thereof.30.15%Face value of such bill of exchange or order or the equivalent of such value, if expressed in foreign currency
183Life Insurance PoliciesP200.00 or fraction thereof.50.25%Amount Insured by the Policy
184Policies Of Insurance upon PropertyP4.00 premium or fraction thereof.5012.5%Premium charged
185Fidelity Bonds and other Insurance PoliciesP4.00 premium or fraction thereof.5012.5%Premium charged
186Policies of Annuities, Annuity or other instrumentsP200.00 or fraction thereof1.5075%Capital of annuity, or if unknown 33 1/3 times the annual income
186Pre-Need PlansP500.00 or fraction thereof.50.10%Value or amount of the Plan
187Indemnity BondsP4.00 or fraction thereof.307.5%Premium charged
188Certificates of Damage or otherwise and Certificate or document issued by any customs officers, marine surveyor, notary public and certificate required by law or by rules and regulations of a public officeEach Certificate15.00
189Warehouse Receipts (except if value does not exceed P200.00)Each Receipt15.00
190Jai-alai, Horse Race Tickets, lotto or Other Authorized Number GamesP1.00 cost of ticket andAdditional P0.10 on every P1.00 or fraction thereof if cost of ticket exceeds P1.00.1010%Cost of the ticket
191Bills of Lading or Receipts(except charter party)Each Proxy15.00
193Powers of AttorneyEach Document5.00
194Lease and other Hiring agreements of memorandum or contract for hire, use or rent of any land or tenements or portions thereofFirst 2,000For every P1,000 or fractional part thereof in excess of the first P2,000 for each year of the term of the contract or agreement3.001.001.5%1%
195Mortgages Pledges of lands, estate, or property and Deeds of TrustFirst 5,000On each P5,000 or fractional part thereof in excess of 5,00020.0010.00.4%.2%Amount SecuredAmount Secured
196Deed of Sale, instrument or writing and Conveyances of Real Property (except grants, patents or original certificate of the government)First 1,000For each additional P1,000 or fractional part thereof in excess of P1,00015.0015.001.5%1.5%Consideration or Fair Market Value, whichever is higher (if government is a party, basis shall be the consideration)
197Charter parties and Similar Instruments1,000 tons and below 

 

 

1,001 to 10,000 tons

 

 

 

 

Over 10,000 tons

P500.00 for the first 6 months PlusP50 each month or fraction thereof in excess of 6 monthsP1,000 for the first 6 months
Plus P100 each month or fraction thereof in excess of 6 monthsP1,500 for the first 6 months
Plus P150 each month or fraction thereof in excess of 6 months

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.

Codal Reference
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 document ?

  • 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.

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