BIR Ruling

January 8, 1973 Mr. Rustico E. Carada Register of Deeds Tagaytay City S i r : This refers to your letter dated November 20, 1972 requesting information as to whether or not the documents enumerated therein are subject to documentary and science stamp taxes. aisa dc In reply thereto, I have the honor to inform you as follows: 1. Mortgage deeds where the consideration is P1,000.00 or less are exempt from the documentary and science stamp taxes, pursuant to Section 232 of the Tax Code. 2. Bail Bonds undertaken by sureties upon real estate properties to guarantee the appearance of certain defendants in the Court of Justice are likewise exempt from documentary and science stamp taxes, because such bonds, are required in legal proceedings. (Section 224 of the Tax Code; Sec. 70, Regulations No. 26, Department of Finance). 3. Partition deeds are not subject to tax unless a consideration passes between the parties by reason of one or more of them taking under the division a share of real estate of greater value than his undivided interest, in which event stamp tax attaches to the deeds conveying such greater shares, calculated upon the value of such consideration. (Sec. 184, Regulations No. 26, Department of Finance). Consequently, ordinary subject of partitions, duly approved by the proper court, involving heritable properties under administration are also exempt from stamp tax. cdi Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue