Documentary Stamp Tax on — Lease Contract for 25 Years

February 13, 1979 BIR RULING NO. 002-79 Documentary stamp tax on lease contract for 25 years This refers to your letter dated December 4, 1978 requesting a ruling on the amount of documentary stamps to be affixed on lease contracts for a term of 25 years involving lands of the public or private domain of the Government. In reply thereto, I have the honor to inform you that the documentary stamp tax on leases and other hiring agreements is prescribed in Section 243 of the Tax Code, as amended by Presidential Decree No. 1457, which provides that "SEC. 243. Stamp tax on leases and other hiring agreements . On each lease, agreement, memorandum, or contract for hire, use or rent of any lands or tenements, or portions thereof, there shall be collected a documentary stamp tax at the following rates: "(b) If executed for more than one year and not more than three years, four pesos and fifty centavos. "(c) If executed for more than three years, nine pesos." casia Pursuant to the aforequoted provision, therefore, the amount of documentary stamp to be affixed on lease contracts for a period of 25 years, is P9.00.