BIR Ruling [DA-678-99]

December 10, 1999 BIR RULING [DA-678-99] Board of Investments Industry & Investments Building 385 Gil J. Puyat Avenue Makati City Attention: Ms . Angela M . Fernando Director Administration Department Gentlemen : This refers to your letter dated March 1, 1999 inquiring as to whether a government office like the Board of Investments (BOI) is liable to pay the documentary stamp tax on the Contract of Lease which the Lessor, the National Development Corporation (NDC), a government-owned and controlled corporation, is requiring you to pay. In reply, please be informed that documentary stamp tax is payable by the person making, signing, issuing, accepting or transferring the document, instrument and paper. This provision leaves the tax to be paid indifferently by either party. (Sta. Clara Lumber Company, Inc. vs. Jose Araas, CTA Case No. 502, June 12, 1959) In the instant case, the documentary stamp tax is the direct liability of NDC, the Lessor. The said tax is being passed on to you either business practice or contractual arrangement. Such being the case, you cannot claim exemption from the payment of the documentary stamp tax due on the Contract of Lease executed by and between you and NDC. Please be guided accordingly. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue