BIR Ruling

July 26, 1976 Deed of Confirmation of Sale No Longer Subject to Science and Documentary Stamp Taxes This refers to your letter dated November 26, 1975 requesting in effect information whether a Deed of Confirmation of Sale is subject to documentary and science stamp taxes under Section 233 of the Tax Code. It appears that you are one of the vendors of a parcel of unregistered land (not covered by a certificate of title) sometime in July 2, 1973; that the Deed of Sale of this unregistered land was accordingly registered with the Register of Deeds of Rizal under Act No. 3344 for which you have paid the corresponding documentary and science stamp taxes under Section 233 of the Tax Code. It appears further that a certificate of title under Act No. 496 has been issued for the aforesaid land, for which reason, you and your co-vendors have executed a Deed of Confirmation of Sale in favor of the vendee, Helen Development Corporation, which you are now registering under Act No. 496 for the purpose of transferring the certificate of title of the aforesaid property in the name of the vendee. In reply, I have the honor to inform you that the Deed Confirmation of Sale is no longer subject to the document and science stamp taxes as documentary stamp tax, being an excise tax is paid only once. (Commissioner of Internal Revenue vs. Heald Lumber Company, G. R. No. L-16340, February 22, 1964). However, the Notarial Acknowledgment following the Deed of Confirmation of Sale is subject to the thirty-centavo documentary stamp tax. (Section 225 of the Tax Code) It is not, however, subject to science stamp tax pursuant to Section 4, of Republic Act No. 5448. cdtai