BIR Ruling [DA-171-97]

April 16, 1997 BIR RULING [DA-171-97] Atty. Ferdinand P. Ignacio Deputy Register of Deeds Office of the Register of Deeds Makati City S i r : This refers to your letter dated December 3, 1996 requesting, in effect, confirmation of your opinion that proof of payment of documentary stamp tax must be submitted/presented to that Office before effecting the registration of the Deed of Real Estate Mortgage executed by and between Philippine Airlines (PAL) and Philippine National Bank (PNB) on February 23, 1996 in connection with the latter's second mortgage of TCT Nos. 174622 and 174623 as security for the former's credit facility. cdt In reply, please be informed that since PAL enjoys exemption from the payment of the documentary stamp tax, PNB, the other party to the said Deed of Real Estate Mortgage, shall be the one directly liable for the payment of the corresponding documentary stamp tax. (BIR Ruling No. 097-94 dated April 13, 1994, applying Section 173 of the Tax Code, as amended) Such being the case PNB must present proof showing that the corresponding documentary stamp tax had been duly paid through the Revenue Office concerned, i.e., official receipt number, amount of stamp tax paid and date of payment before the deed in question may accordingly be registered. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue