BIR Ruling No. 068-83

April 15, 1983 BIR RULING NO. 068-83 Gentlemen : This refers to your letter dated March 16, 1982 requesting a ruling on whether or not a chattel mortgage contract which was executed abroad is subject to documentary stamp tax under the National Internal Revenue Code. It is represented that FBA Aircraft, S.A. (FBA), a non-resident foreign corporation, obtained a loan in foreign currency from The Chase Manhattan Bank, N.A. (Chase), another foreign corporation: that the loan is booked in the Head Office of Chase in New York, New York, U.S.A; that to secure the loan, FBA executed a chattel mortgage over movables (airplanes) in favor of Chase; that this chattel mortgage contract was executed outside of the Philippines on December 18, 1981; that the said airplanes, subject matter of the chattel mortgage contract are located here in the Philippines as they are being leased to Sterling Airways, Inc., a domestic corporation; and that FBA and Chase now want to register the chattel mortgage contract in the Philippines, under the provisions of the chattel Mortgage Law, (Act 1508). cdtech In reply, please be informed that the aforesaid chattel mortgage contract is not subject to the documentary stamp tax imposed by Section 244 of the Tax Code because being an excise tax is applicable only to transactions effected and consummated within the Philippines but which, as represented, is not so in this case. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue