Documentary Stamp Tax

• Documentary stamp tax is an 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, and in respect of the transaction so had or accomplished.
• The tax return shall be filed and the tax due shall be paid at the same time within 5 days after the close of the month when the taxable document was signed, issued, accepted, or transferred.
• Failure to stamp a taxable document shall not invalidate the same. However, 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.
• Exempt from DST - refer to sec 199
• T or F

  Whenever one party to the taxable document enjoys exemption from the tax herein imposed, the other party thereto who is not exempt shall be the one directly liable for the tax.

  True.
• Alpha corporation, a newly formed corporation organized under Philippine laws, issued on March 8, 2021 shares of stocks to one of its incorporators, Mr. Dela Cruz, for 250,000. The par value of the shares issued is 200,000.

  The DST due is 2,000.
• Alpha corporation, a newly formed corporation organized under Philippine laws, issued on March 8, 2021 shares of stocks to one of its incorporators, Mr. Dela Cruz, for 250,000. The par value of the shares issued is 200,000.

  The DST due given that there is no par value, is 2,500.
• Alpha corporation, a newly formed corporation organized under Philippine laws, issued on March 8, 2021 shares of stocks to one of its incorporators, Mr. Dela Cruz, for 250,000. The par value of the shares issued is 200,000.

  If the shares (without par) were subsequently sold by Mr. Dela Cruz for 400,000, the DST due is 1,250.
• Pedro sold one of his vacant lots in his hometown in Pampanga acquired by him five years ago for 6,000,000. He sold the same to Juan for 15,000,000, equivalent to the FMV at the time of sale.

  The DST due is 225,000.

  15,000,000/1000 x 15 or 15,000,000 x 1.5%
• The applicable DST due for all debt instruments is 1.50 per 200 or a fraction thereof or 0.75% of the issue price.