Purchase of the Documentary Stamp Tax for the Checks

February 9, 1959 BIR RULING NO. 076-59 Consolidated Philippines, Inc. Paraaque, Rizal Attention : Mr Federico B . Guilas Office Manager Gentlemen : In reply to your letter dated January 23, 1959, requesting that you be allowed to purchase documentary stamps for your checks in the amount of 10% of the total documentary stamp tax due for each check inasmuch as you are a grantee of tax exemption under Republic Act 901, I have the honor to inform you that the tax exemption granted under Republic Act 901 covers only taxes directly payable by the grantee in respect to the tax exempt industry. The documentary stamp tax on checks is due primarily from the bank that issues the same. The fact that the burden of paying the tax is shifted by the bank to its customers does not make the customer primarily liable for the tax. In view of the foregoing, and inasmuch as the documentary stamp tax on the checks is not directly payable by you, the same is not covered by the tax exemption granted in your favor. The documentary stamp tax on the checks to be issued by the different banks to you should therefore, be paid in full. cdpr Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue