Documentary Stamp Taxes on Checks, Drafts and Negotiable Interest-Bearing Certificates

July 16, 1971 BIR RULING NO. 010-71 Documentary stamp taxes on checks, drafts and negotiable interest-bearing certificates . Checks or drafts drawn on or issued by a bank to effect withdrawal of foreign currency deposits are each subject to the documentary stamp tax of P0.04, pursuant to Section 216 of the Tax Code. aisa dc Negotiable interest-bearing certificates of deposits of foreign currency issued by authorized banks to depositor are each subject to the documentary stamp tax at the rate of P0.04 on each P200.00 or fractional part thereof, of the face value of any such certificate of deposit, pursuant to Section 217 of the same Code. In this connection, since the deposit is in foreign currency, the same should be converted to the Philippine currency at the floating rate of exchange prevailing at present. Thereafter, the amount of documentary stamp tax shall be computed on the basis of the equivalent Philippine currency. In addition to the documentary stamp tax, the said documents are also subject to the science stamp tax in an equivalent amount, pursuant to Republic Act No. 5448. cd