Affixture of the DST on a Premium Register

February 4, 1988 BIR RULING NO. 024-88 200 052-87 024-88 Gentlemen : This refers to your letter dated November 10, 1987, requesting that you be allowed to affix the documentary stamp tax on your premium register (Computerized Master List of Policies Issued) in view of the voluminous number of policies that you issue daily. It is represented that your request to use Masler Documentary Machine Model F202 Series Nos. 290649A for your documentary stamps tax requirements has been approved by Revenue Region No. 4-B in a letter of the Regional Director dated September 21, 1987; that said permit authorized you only to affix the documentary stamps on your insurance policies; that to ensure proper control on the documentary stamps that will be affixed, you will use "Continuous Form of Computer Paper" which is serially pre-numbered and registered with the BIR as loose leaf blank sheets before these are fed to the computer machine; and that damaged or cancelled or unused sheets with respective numbers shall still form part of the record or register. In reply, please be informed that pursuant to Revenue Regulations No. 3-75 amending Section 203 of Regulations No. 26 (Documentary Stamp Tax Regulations) and implementing Section 213 (renumbered Sec. 200 by E.O. 273) of the Tax Code, pertinent portion of which is quoted hereunder as follows: ". . . In meritorious cases . . . the Commissioner of Internal Revenue, may, in his discretion, authorize . . . that with respect to insurance policies, the documentary stamps shall be adhered to the register copy of premium register; . . ." your request is hereby granted subject to the following conditions: 1. You will either purchase in advance documentary stamps, or make advance payments for documentary stamp tax requirements in amounts sufficient to cover future affixtures, or make use of the Masler Documentary Machine Model F202 Serial No. 290649A in affixing the required documentary stamps on the premium register which shall be in " Continuous Form of Computer Paper ." 2. The computerized form of computer paper to be used as premium register shall be prenumbered and registered by the BIR as loose leaf blank sheets or plain paper with serial numbers. Damaged, cancelled or unused sheets with their Serial Numbers shall still form part of the premium register or the records on insurance policies issued. 3. The affixtures of documentary stamps and/or stamping of amount of the documentary stamp tax shall be reflected in the premium register on a daily basis and it shall suffice that the annotation on the face of the insurance policies issued be made as follows "Documentary stamps to the value of P_____ have been affixed on the Premium Register." Moreover, pursuant to the provisions of Regulations No. 77 of the Department of Finance, before any tax meter could be used, it has to be set, locked and sealed in the presence of the Commissioner of Internal Revenue or his authorized representative. It shall also be necessary for any person or corporation who intends to use the meter machines to first submit his written requisition for stamps on BIR Form 2908 to the Commissioner of Internal Revenue and to pay the corresponding value thereof. The value of said stamps so requisitioned shall be entered on the debit side of a record book to be kept for the purpose while the value of the stamps printed and used shall be entered on the credit side thereof. The tax shall be made available at all times for inspection by Internal Revenue Officials. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner