Documentary Stamp Taxes on Tax-Exempt Industries

March 11, 1959 BIR RULING NO. 135-59 Messrs. Sycip, Salazar & Associates 5th Floor, Trade & Commerce Building 215 Juan Luna, Manila Gentlemen : In reply to the queries contained in your letter dated December 29, 1958, we quote hereunder the opinion of the Honorable, the Secretary of Finance dated February 5, 1959: cdll "Tax-exempt industries are required to pay 10% of all documentary stamp taxes directly payable by them during the calendar year 1959, pursuant to Section 1 of Republic Act No. 901. There is no documentary stamp of 3-centavo denomination, and in lieu thereof, the 4-centavo denomination may be used. "Where a tax-exempt corporation using the calendar year as its annual accounting period became subject to income tax starting November 1, 1958, its net income for the year 1958 may be prorated over the 12 month period. The net income corresponding to eight months (January 1 to October 31, 1958) shall be exempt, and the net income corresponding to two months (November 1 to December 31, 1958) will be taxable. "The net income derived by the corporation from January 1 to October 31, 1958, the date of the lapse of the 6-year period of exemption, shall continue to be exempt, and exemption for such net income may be claimed in the income tax return of the corporation covering its net income realized from January 1, 1958 to December 31, 1958, to be filed on or before March 1, 1959." llcd Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue