BIR Ruling

July 27, 1972 The Chairman National Science Development Board Taguig, Rizal S i r : The science stamp tax imposed by Republic Act No. 5448 is practically the same in amount as the internal revenue stamp tax on all taxable instruments. In short, the amount and imposition of the science stamp tax is pegged to the amount and imposition of the internal revenue stamp tax. There is only one instance where the amount of the science stamp tax differs from the amount of the internal revenue stamp tax, that is on certificates of tax clearance for purposes of travel. There are also only two (2) instances where a science stamp tax is not imposed although the instrument is subject to internal revenue stamp tax, that is on freight tickets covering goods, merchandise or effects carried as accompanied baggage of passengers on land and water carriers primarily engaged in the transportation of passengers and on certificates issued by a notary public or by any person authorized to administer oath. cdta Notwithstanding the foregoing, however, a separate science stamp is presently being affixed to a taxable instrument. Thus two separate stamps of the same amount are being affixed. This procedure is found cumbersome, tedious, inconvenient, impractical and costly. This representation now seeks to do away with the affixture of a separate science stamp except on certificates of tax clearance for travel. The mechanics of this proposition requires merely the doubling of the internal revenue stamp tax and the affixture of internal revenue stamps corresponding to the doubled amount. It will then be understood that of the total collection from the stamp taxes, the share of the NSDB shall be equal to one-half thereof. The foregoing proposition is believed legally tenable considering that, under Section 4 of the Act, "the tax shall be collected at the same time, in the same manner and subject to the same penalties as the documentary stamp tax imposed under the National Internal Revenue Code." While this Office also takes notice of the fact that, under Section 6 of the Act, the Chairman of the NSDB and NRCP may also promulgate rules and regulations as may be necessary for the effective implementation of the Act including the adoption of an appropriate design for the science stamp, nevertheless, the exercise of the power appears to be purely discretionary and the said officials may not, therefore, adopt any specially designed stamp but may adopt the same stamp used for internal revenue purposes (Emphasis supplied) Inasmuch as the interest of the NSDB will not at all be prejudiced as the collection of the science tax will be effectively implemented by the simple expedient of doubling the current rate of internal revenue stamp tax to which the rate of science tax is pegged, your conformity to the instant representation would be most opportune. It is of course understood that, with respect to the tax on certificates of tax clearance for travel purposes, the science stamp tax will continue to be separately charged and identified. We hope to hear from you very soon. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue