BIR Ruling

May 7, 1974 Philippine Home Makati Insurance Group AIU Building 6797 Ayala Avenue Makati, Rizal S i r : This refers to your letter dated March 20, 1973 requesting approval of your plan to affix and cancel the documentary stamps on the premium register only instead of on the individual insurance policies in view of the volume of work involved in the present practice and requirement. cdta In reply thereto, I have the honor to inform you that your request cannot be granted. It has been consistently held by this Office that the procedure in affixing documentary stamps on insurance policies is that stated in Section 210 in relation to Section 220 and 222 and Section 237 of the Tax Code. These provisions clearly indicate that the stamps should be affixed to the documents or instruments taxed. Moreover, it has been held that the liability of an instrument to stamp tax and the amount of tax due thereon are determined by the form and face of the instrument itself and cannot be affected by proof of facts outside of the instrument. (U.S. v. Ishan 17 Wall. 496, 84 U.S. 496) Such being the case, the present procedure of affixing the documentary stamps on each and every file copy of insurance policies, renewal certificates and endorsements issued should be always followed. cd Very truly yours, CONRADO P. DIAZ Acting Commissioner of Internal Revenue