BIR Ruling

July 14, 1969 Mindanao Institute of Technology Kabacan, Cotabato Attention: Mr . D . D . Clemente President Gentlemen : This refers to your 1st Indorsement dated April 30, 1969 requesting information as to whether or not the Mindanao Institute of Technology is required to attach documentary stamps on diplomas and transcript of records. In reply, I have the honor to inform you that the Mindanao Institute of Technology being a government institution cannot be subject to tax. This is in accordance with the principle that the government is exempt from the burden of its own tax. Nevertheless, diplomas and transcript of records, although issued by a state college, are subject to the documentary stamp tax imposed by Section 225 of the Tax code because they are not covered by the exceptions provided under Section 236 of the same Code. The tax, however, can be charged to the students as recipients thereof, it being payable by either the party issuing or by the one accepting the certificates in accordance with Section 210 of the Tax Code. cdll Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue