Documentary Stamp Tax Attaches Only on Deeds, Papers or Instruments Whereby Realty is Sold to Any Buyer or Purchaser; Transfers by Way of Donation are Gratuitous, Therefore, the Document is Not Subject to Documentary Stamp Tax

April 2, 1997 BIR RULING NO. 034-97 188; 196 000-00 034-97 A.M. Sison, Jr. & Associates Suite 2002-A 6776 Ayala Ave, Condominium 6776 Ayala Avenue, Makati City Attention: Atty . A . B . Gutierrez, Jr . Gentlemen : This refers to your letter dated May 27, 1996 requesting confirmation of your opinion that the documentary stamp tax attaches only on deeds, papers or instruments whereby realty is sold to any buyer or purchaser; and that if the transfer is by way of donation, it is gratuitous and since there is no monetary consideration, the document is not subject to the documentary stamp tax imposed under Section 196 of the Tax Code, as amended. In reply, please be informed that your opinion is confirmed. Pursuant to Section 161 of Revenue Regulations No. 26 otherwise known as the Revised Documentary Stamp Tax Regulations, as amended, "deeds of donation which expressly show upon the face of the instrument that the transfer is gratuitous and where as a matter of fact there is no consideration, are not subject to this (documentary stamp) tax". This provisions of said Revenue Regulations No. 26 is still being enforced by this Office, there being no issuances expressly revoking the same. However, the acknowledgment portion of a deed of donation is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code, as amended by R.A. No. 7660 beginning 1996. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue