BIR Ruling

February 6, 1970 Atty. Mamerto S. Asuncion Register of Deeds Boac, Marinduque S i r : This is with reference to your letter dated October 6, 1969 requesting a ruling on the claim for exemption from the payment of the documentary stamp tax by the Marcopper Mining Corporation as a holder of a Certificate of Qualification for Tax Exemption issued by the Honorable Secretary of Agriculture and Natural Resources on October 25, 1968. In reply thereto, please be informed that Section 210 of the Tax Code provides that the documentary stamp tax may be paid either by the person making, signing, issuing, accepting, or transferring the document, instrument, and papers and/or acceptances, assignments, sales, and transfer of the obligation, right and property incident to the transaction so had or accomplished. Hence, this Office has consistently ruled that where a tax exempt person is party to a taxable transaction, the tax is nonetheless due and payable, the same to be paid by the other party to the transaction. In view thereof, considering the tax exemption granted to Marcopper Mining Corporation, the documentary and science stamp taxes which are supposed to be due on any and all of the transactions of which the Marcopper Inc. is a party, shall be due from, and payable by, the other party to the transactions. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue