New Procedures on the Purchase and Affixture of Documentary Stamp on Taxable Documents/Transactions

March 9, 1999 BIR RULING NO. 025-99 184-000-00-025-99 ISAP, Incorporated (Insurance & Surety Association of the Philippines) Room 448, Regina Building Escolta, Manila Attention: Messrs . Edwin B . Celino Director and Santiago Gascon General Manager Gentlemen : This refers to your letter dated September 24, 1998 requesting that non-life insurance companies be allowed to continue paying their documentary stamps tax liabilities in lump sum instead of affixing stamps through a metering machine. In reply thereto, please be informed that Sections 2, 3, and 4 of Revenue Regulations No. 5-97 relative to the new procedures on the purchase and affixture of documentary stamp on taxable documents/transactions provides, viz. : "SEC. 2. Purchase and Affixture of Loose Documentary Stamps or Actual Stamping System . 2.1 Any person may purchase loose documentary stamps not exceeding P200.00 for future application upon taxable documents/transactions from Revenue Collections Officers. 2.2 Loose documentary stamps shall be allowed to be used only when the amount of documentary stamp tax due on a taxable document/transaction does not exceed P10. 2.3 . . . "SEC. 3. Purchase and Affixture of Documentary Stamps Through Constructive Stamping on Taxable Documents/Transactions or Receipts System . 3.1 Any person may at any one time purchase documentary stamps for constructive affixture on each taxable documents/transactions if the amount of documentary stamp tax due is ten pesos (P10.00) or more. 3.2 In lieu of the actual documentary stamps, the duplicate copy or certified xerox copy of proof of payment may be affixed on each document. LLjur 3.3 Advance purchase of documentary stamps for future application on taxable documentary/transactions shall not be allowed through the constructive stamping or receipt system. "SEC. 4. New Procedure on Purchase of Documentary Stamp for Use in BIR Registered Metering Machine . Purchase of Documentary Stamps for future applications not covered by Sections 2 and 3 of these Regulations shall be allowed only to persons authorized to use BIR Registered Metering Machine under Revenue Regulations No. 7-92 dated September 7, 1992." Such being the case, your purchase and affixture of documentary stamp tax on all your policies of insurance or other instruments by whatever name the same may be called, by which insurance shall be made or renewed upon property of any description, including rents or profits, against peril by sea or on inland waters, or by fire or lightning shall be in accordance with the pertinent provisions of the aforementioned Revenue Regulations No. 5-97. Moreover, Finance Department Order No. 54-98 deals with the creation of an Inter-Agency Committee on Insurance Companies for the purpose of monitoring the tax payments of insurance companies and not on the procedure for the purchase and affixture of documentary stamps on taxable documents/transactions. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue