BIR Ruling [DA-092-00]

February 10, 2000 BIR RULING [DA-092-00] Philippine Airlines Post Office Box 1955 Manila Attention: Mr . Eduardo R . Ceniza Corporate Secretary Gentlemen : This refers to your letter dated January 6, 2000, requesting exemption from the payment of documentary stamp tax on the issuance of P1.00 certificates of stock to. replace all P5.00 bearing stock certificates. LexLib It is represented that in compliance with the approval by the Securities and Exchange Commission (SEC) of the amendment of the Articles of Incorporation of Philippine Airlines, Inc., which changed the par value of its shares from P5.00 to P1.00 per share, you are cancelling from your books all P5.00 bearing stock certificates and, in lieu thereof, you are issuing replacement certificates bearing P1.00 par value. In reply, please be informed that in BIR Ruling No. 052-80 dated May 13, 1980, citing Section 13 of Regulations No. 26, it was ruled that no documentary stamp tax is due on certificates of stock which are issued to replace prior or original certificates of stock, provided the replacement certificates are issued to the same person and the tax has been paid on the original issue, inasmuch as the issuance of these replacement certificates is not an original issue either on organization or reorganization. Accordingly, the replacement certificates bearing P1.00 par value is exempt from the documentary stamp tax under Section 175 of the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)