BIR Ruling

March 11, 1975 The Director Bureau of Private Schools Manila S i r : This refers to your request for clarification involving the rulings issued by this Office on April 15, 1971 and December 7, 1972, regarding the requirement of documentary and science stamp taxes on school records. The ruling dated April 15, 1971 states in part: "In this connection, it may be stated that all diplomas and transcript of records are subject to the documentary stamp tax of thirty centavos (P0.30) under Section 225 of the Tax Code and to an additional science stamp tax of another thirty centavos (P0.30), pursuant to Republic Act No. 5448. For purposes of said taxes, transcript of records includes transfer credentials and honorable dismissals issued to elementary, high school and college students since they are certificates issued for the purpose of giving information or establishing proof of a fact as provided for under Section 225 of the Tax Code and Section 75 of Revenue Regulations No. 26 of the Department of Finance, otherwise known as the Documentary Stamp Tax Regulations ." cd On the other hand, Ruling dated December 7, 1972 states as follows: "In reply, I have the honor to inform you that permanent records of high school, college and elementary students (Form 137-A) who transfer from one school to another are not subject to the payment of documentary and science stamp taxes since they are not considered certification within the purview of Section 225 of the Tax Code (BIR Ruling No. 72-030 dated December 4, 1972)." You contend that the above rulings are inconsistent with each other, considering that under existing rules of that Office "permanent records" of high school, college and elementary students as contemplated "transcript of records" referred to in the ruling dated April 15, 1971. In reply thereto, I have the honor to inform you that there is no inconsistency between the foregoing rulings. The ruling of December 7, 1972 speaks of permanent records of high school, college and elementary students (Form 137-A) who transfer from one school to another which are not considered certificates within the purview of Section 225 of the Tax Code. On the other hand, the ruling of April 15, 1971 speaks of diplomas and transcript of records and that transcript of records includes transfer credentials and honorable dismissals issued to elementary, high school and college students since they are certificates issued for the purpose of giving information or establishing proof of a fact as provided for under Section 225 of the Tax Code and Section 75 of Revenue Regulations No. 26 of the Department of Finance. It is true that "transcript of records" are included in the "permanent records" of the students. However, for purposes of the above ruling of this Office, a transcript of record becoming a permanent record means permanent or original transcript of record and not merely a reproduction or a copy from the original. The test, therefore, for college transcript of record is when the original transcript of record itself is the one issued by the school to the student transferring, in which case, the transcript is exempt from the science and documentary stamp taxes. On the other hand, should the school issue only a certification by copying from the original ; then it is subject to the said taxes because in such a case the transcript is considered a certificate issued for the purpose of giving information or establishing proof of a fact as provided for under Section 225 of the Tax Code. casia Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5