BIR Ruling

January 31, 1969 Sycip, Gorres, Velayo & Co. Certified Public Accountants P. O. Box 589 Manila Attention: Mr . M . Gutierrez Tax Division Gentlemen : This refers to your letter dated December 18, 1968 requesting information on whether or not an insurance policy issued in December, 1968 but taking effect after January 1, 1969 would be subject to the additional documentary stamp tax imposed under R. A. No. 5448 and the manner of payment of the said tax due thereon. In reply, I have the honor to inform you that under the Documentary Stamp Tax Law, the documentary stamps must be affixed to the issuance policy on the date it is issued even if no premium has been paid thereon. The science stamp tax, being additional to the documentary stamp tax imposed by Sections 211 to 235 of the Tax Code must necessarily accrue at the same time as the latter. Such being the case, the insurance policy in question need not be affixed with the science stamps. Payment of the additional documentary stamp tax or science stamp tax due on an insurance policy shall be effected by the affixture of science stamps in an amount equal to that required by Section 220, 221, or 222 of the Tax Code to be affixed on said document. LLphil Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue