BIR Ruling

July 2, 1969 The Acting Revenue Director Revenue Region No. 9 San Pablo City S i r : This is with reference to your letter dated May 2, 1969 requesting for a ruling as to whether a document subject to the documentary stamp tax prescribed under the Tax Code, which has been executed and ratified before a notary public sometime in 1968 but registered only in 1969 or after the effectivity of Republic Act No. 5448 on January 1, 1969, is still subject to the Science stamp tax? In reply thereto, please be informed that such document is not subject to the science stamp tax for the reason that the execution and acknowledgment thereof before a notary public was accomplished before the effectivity of the aforesaid law. It has been ruled that the stamp tax may be paid at any time either before or at the time the documents are presented in evidence. (Del Castillo vs. Madrilea, 49 Phil. 749). However, liability to tax is determined by the law applicable at the time of the execution of the document. The affixture of the stamp merely constitutes the actual payment of the tax. Please be guided accordingly. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue