BIR Ruling

March 10, 1970 The "Action Line" The Manila Times P. O. Box 775 Manila Gentlemen : This refers to the undated letter addressed to your column by Mr. Pedro Valdecantos of Sta. Maria, Laguna, requesting information as to the specific documents which are subject to science stamp tax and those which are exempt. In reply, please be informed that Section 4 of Republic Act No. 5448, impose an additional science stamp tax equal to 100% of the amount collected as documentary stamp tax provided for under Sections 211 to 235 of the National Internal Revenue Code, as amended by Republic Act No. 6110, except in Section 225 thereof. The documents specified in said provisions which are subject to the science stamp tax are as follows: 1. Bonds, debentures and certificates of indebtedness P0.30 on each P200.00 or fractional part thereof, of the face value of such documents. (Sec. 211 NIRC as amended) 2. Original issue of certificates of stock P0.50 on each P200.00 or fractional part thereof, of the face value of such documents. (Sec. 211 NIRC as amended) 3. On sales, agreements to sell, memoranda of sales, deliveries or transfer of bonds, due bills, certificates of obligation or shares or certificates of stock P0.10 on each P200.00 or fractional part thereof of the par value of such documents. (sec. 213, supra*) 4. Bonds, debentures, certificates of stock of indebtedness issued in foreign countries Such tax as is required by law on similar instruments when issued or sold or transferred in the Philippines. (sec. 214, supra) 5. Certificates of profits or interest in property or accumulations of any association, company or corporation and transfer thereof P0.04 on each P200.00 or fractional part thereof, of the face value of such certificate or memorandum. (sec. 215 supra) 6. Checks, drafts, certificates of deposit not bearing interest P0.04 (sec. 216) 7. Negotiable promissory notes and bills of exchange P0.04 on each P200.00 or fractional part thereof, of the face value of such note or bill of exchange. (sec 217, supra) 8. Acceptance of bill of exchange and others drawn in a foreign country but payable in the Philippines P0.06 on each P200.00 or fractional part thereof. (sec. 218, supra) 9. Foreign bills of exchange and letters of credit drawn in but payable outside the Philippines in a set of three or more according to the custom of merchants and bankers P0.06 on each P200.00 or fractional part thereof (of the face value of such bill of exchange or letters of credit) (sec. 219, supra) 10. Insurance Policies a) life insurance policies P0.15 on each P200.00 or fractional part thereof, of the amount insured under such policy. (sec. 220, supra) b) property (marine, inland, or fire) insurance policy P0.06 on each P200.00 or fractional part thereof, of the amount of premium charged. (Sec. 220, supra) c) fidelity bonds and other insurance policy P0.06 on each P4.00 or fractional part thereof, of the premium charged. (Sec. 222, supra) d) policies of annuities P0.30 on each P200.00 or fractional part thereof, of the capital of the annuity. (sec. 223, supra) e) indemnity and surety bonds P0.75 (sec. 224, supra) f) tax clearance certificates of persons going abroad a) 1st class passengers P50.00 b) 2nd class passengers P30.00 c) 3rd class or steerage class P5.00 (sec 4, R.A. 5448) 11. Warehouse receipts for property held in storage in a public or private warehouse or yard for any other person other than the proprietor of such warehouse or yard when the value of the goods stored exceeds P200.00 P0.30 On hotel, motel, resthouses, lodging houses and resorts' receipts P1.00 on each P20.00 or fractional part thereof. (sec. 226, supra) 12. Proxies for voting at any election for offices of any company or association, or for any other purposes except those engaged in religious, charitable or literary purposes. P0.50 (sec. 229, supra) 13. Powers of Attorney In general Those authorizing another to administer, P0.30 sell, lease or otherwise dispose of property P0.60 (sec. 230, supra) 14. Lease contracts over land or tenement 1. If executed for a period not exceeding one (1) year P0.60 2. If executed for a period exceeding one year but not more than 3 years P1.50 3. If executed more than 3 years P3.00 (sec. 231, supra) 15. On mortgage or pledge of lands, estate or property, real or personal, where the same is used or made as a security either by express stipulation or otherwise 1. When the amount does not exceed P1,000.00 P0.30 2. When the amount exceeds P1,000.00 but does not exceed P3,000.00 P1.50 3. When the amount exceeds P3,000.00, an additional tax of P1.50 (sec 232, supra) 16. Deeds of sale and conveyance or real property 1. If the consideration exceeds P200.00 but does not exceed P1,000.00 P0.75 2. For each additional consideration of P1,000.00 P3.00 (sec. 233, supra) 17. Stamp tax on charter parties and similar instruments 1. If the registered tonnage of the ship, vessel or steamer does not exceed 300 tons, and the duration of the charter or contract does not exceed six months P18.00 For each month or fraction thereof in excess of six months, an additional P3.00 2. If the registered gross tonnage of the ship, vessel or steamer exceeds 300 tons and does not exceed six hundred tons and the duration of the contract does not exceed six months 36.00 For each month or fraction of a month in excess of six months, an additional P6.00 3. If the registered gross tonnage exceeds 600 tons and the duration of the charter or contract does not exceed six months P72.00 For each month or fraction of a month in excess of 6 months, an additional P12.00 (sec. 234, supra) 18. Stamp tax on assignments and renewals of certain instruments amount of documentary stamp tax imposed on the original instrument. (sec 235, supra) The science stamp tax is 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 as amended by R. A. 5448. Pursuant to section 4, Republic Act No. 5448, no science stamp tax shall be imposed on the following documents: 1. 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. 2. Certificates issued by a notary public or by any person authorized to administer oath. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue