BIR Ruling [DA-588-98]

December 29, 1998 BIR RULING [DA-588-98] Ms. Virginia L. Trinidad Regional Director Revenue Region No. 8 Makati City M a d a m : This refers to the letter dated July 14, 1998 of then Regional Director Antonio I. Ortega of that region, seeking the advice of this Office regarding the action to be taken vis-a-vis the 49,000 pieces of documentary stamps with Serial Numbers 0000251001 to 0000300000 in denomination of P5.00 each, presently in the custody of your Administrative Division. LexLib It is stated that the payment of documentary stamp taxes thru the purchase and actual affixture of documentary stamps in P5.00 denomination is not in accordance with Section 200 (A) of the Tax Code of 1997 which provides that notwithstanding the provisions of P.D. No. 1045, any person liable to pay the documentary stamp tax shall file a return and pay the tax in accordance with the rules and regulations to be prescribed by the Secretary of Finance upon recommendation of the Commissioner; that P.D. No. 1045 had declared without value all documentary and science stamp in denomination of P10.00 and above and provided that documentary stamp tax of P10.00 or more shall be paid to any authorized personnel of the BIR or to the tellers of any commercial banks or to such other banks as may be authorized to accept payment of internal revenue taxes, who shall issue the corresponding official receipts therefor. In connection therewith, please be informed that pursuant to paragraph (D) of Section 200 of the Tax Code of 1997, documentary stamp tax may be paid either through purchase and actual affixture or by imprinting the stamps through a documentary stamp metering machine on the taxable document in the manner as may be prescribed by the Secretary of Finance upon recommendation of the Commissioner. There being no regulations as yet to implement said Section 200 (C ) of the Tax Code of 1997, that Office should follow the procedures prescribed under Revenue Regulations No. 5-97 regarding the manner of purchase and affixture of loose documentary stamp upon taxable document/transaction when the amount of documentary stamp tax due does not exceed P10.00. Thus, for instance the documentary stamp tax on powers of attorney shall be paid by purchase and affixture of the documentary stamp since the tax due thereon is P5.00 for each document pursuant to Section 193 of the Tax Code of 1997. However, when the amount of the documentary stamp tax due on the taxable document is P10.00 or more, the documentary stamp tax shall be paid in the manner prescribed under paragraph (A) of the Tax Code of 1997. In fine, that Office is still allowed to distribute the 49,000 pieces of documentary stamps bearing Serial Nos. 0000251001 to 0000300000 in denomination of P5.00 each to your Collection Officers. Towards this end, any Revenue Collection Officer, duly authorized to sell loose documentary stamps shall accomplish and file the DST Declaration within five (5) days after the close of each week, showing among others, the amount of documentary stamps sold for the preceding week, which is intended to be replenished. The DST declaration shall be filed by the Revenue Collection Officer and the amount collected from the sale of loose stamps paid to any Authorized Agent Bank, using the dummy TIN of his/her RDO. In addition to the declaration, the Revenue Collection Officer shall accomplish General Form 16A in accordance with Section 445 of the Government Accounting and Auditing Manual. (Section 5.2, Revenue Regulations No. 5-97) Please be guided accordingly. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue