BIR Ruling

July 9, 1969 Messrs. Sanchez, Baares & Polintan Attorneys-at-Law Buendia Avenue Cor. Pasong Tamo St. Makati, Rizal P. O. Box 774, Manila Gentlemen : This refers to your letter dated July 3, 1969 in behalf of your client the Mantrade Inc., requesting for an opinion on a query stated as follows: "It is necessary or required that science stamp taxes be affixed on documents executed before January 1, 1969 but sought to be registered only after this date?" In reply thereto, I have the honor to inform you that such document is not subject to the science stamp tax for the reason that the execution and acknowledgment thereof before a notary public was accomplished before the effectivity of the aforesaid law. It has been ruled that the stamp tax may be paid at any time either before or at the time the documents are presented in evidence. (Del Castillo vs. Madrilea, 46 Phil. 749). However, liability to tax is determined by the law applicable at the time of the execution of the document. The affixture of the stamp merely constitutes the actual payment of the tax. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue