BIR Ruling No. 074-63

October 22, 1963 BIR RULING NO. 074-63 2nd Indorsement Returned to the Chief, Alcohol Tax Division, BIR, Manila, the within papers bearing on the issue as to the exact amount of documentary stamps to be affixed on the surety bonds issued by the Filipinas Insurance Corporation in favor of La Tondea and Metro Drug Corporation, with the following comment: A surety bond when issued by a bonding company and signed by the principal obliger is subject to the P.75 documentary stamp tax prescribed in Section, 224, in addition to the documentary stamp tax imposed in Section 222 of the Tax Code, pursuant to Section 65 of Finance Regulations No. 26, which provides as follows: "Sec. 65 Bonds . Bonds made or renewed by any person, association, company or corporation transacting the business of accident, fidelity, employer's liability, plate glass, steam boiler, burglar, elevator, automatic sprinckler, or other branch of Insurance (except life, marine, inland, and fire insurance), conditioned for the performance of the duties of any office or position and for the doing or not doing of anything therein specified are subject to the documentary stamp tax at the rate of 2 centavos (now six) for each P4.00 or fractional part thereof, of the premium charged, under the provisions of Sections 1449(h) (now Section 22, Tax Code) of the Revised Administrative Code. Such bonds when signed by the principal obliger will also be subject to the stamp tax of 30 (now seventy-five) centavos as provided in paragraph (n) (now Section 224, Tax Code) of the same Code". Be guided accordingly. aisadc (SGD.) RAMON T. OBEN Acting Commissioner of Internal Revenue