Documentary Stamp Tax Due on the Original Issue of Certificates of Stock

July 5, 1990 BIR RULING NO. 131-90 175 000-00 131-90 M a d a m : In reply to your letter dated June 20, 1990, you are advised that documentary stamp tax is imposed on documents, instruments and papers, and upon acceptances, assignments, sales and transfers of the obligation, right or property incident thereto (Section 173, Tax Code). In the case of original issue of certificates of stock, said tax is imposed on every issue and the rate of tax thereon is P1.70 on each P200.00 or fractional part thereof of the total par value of such certificate (Section 175, Tax Code). Accordingly, the documentary stamp tax due on the original issues of certificates of stocks of F. Franco Trans Company, Inc. are indicated opposite each certificate as follows: aisadc Stock Certificate Total Par Value Documentary Stamp Number Tax Due 1 P213,200.00 P1,812.00 8 P1,999,500.00 P16,996.60 9 P402,100.00 P3,418.70 10 P615,300.00 P5,230.90 11 P615,300.00 P5,230.00 12 P615,300.00 P5,230.90 13 P615,300.00 P5,230.90 14 P1,384,200.00 P11,765.70 15 P1,384,200.00 P11,765.70 16 P1,384,200.00 P11,765.70 17 P100.00 P1.70 P78,449.70 ========== Stock Certificate Total Par Value Documentary Stamp Number Tax Due 2 P50,000.00 P425.00 3 P50,000.00 P425.00 4 P50,000.00 P425.00 5 P50,000.00 P425.00 6 P50,000.00 P425.00 7 P50,000.00 P425.00 TOTAL P2,550.00 ======= The total documentary stamp tax due on the above mentioned original issue of certificates of stocks is, therefore, P80,999.70, computed as follows: Total tax on the eleven certificates to be issued to Federico Franco P78,449.70 Total tax on the six certificates to be issued to the other six stockholders P2,550.00 Grand Total P80,999.70 Very truly yours, (SGD.) JOSE U. ONG Commissioner