Request for Authority to Pay the Documentary Stamp Due on Insurance Policies Monthly

June 11, 1987 BIR RULING NO. 163-87 249 209-86 163-87 Gentlemen : This refers to your letter dated February 11, 1987 requesting authority to pay the documentary stamp tax due on insurance policies monthly effective January, 1987 and every month thereafter, the amount thereof to be based on the previous month's premium register. It is represented that you have been affixing the required documentary stamps on insurance policies by means of a Hasler franking machine; that due to the voluminous policies which you issue everyday, the employee who is specifically assigned to affix documentary stamps finds difficulty in updating the affixture; and that your request for permission to pay documentary stamp tax on a monthly basis is to update your payment and avoid penalty for late affixture of documentary stamps. In reply, please be informed that pursuant to Revenue Regulations No. 3-75 amending Section 203 of Revenue Regulations No. 26 (Documentary Stamp Tax Regulations) and implementing Section 213 (formerly Section 249) of the Tax Code, pertinent portion of which is quoted hereunder as follows: ". . . In meritorious cases . . . the Commissioner of Internal Revenue, may, in his discretion, authorize . . . that with respect to insurance policies, the documentary stamps shall be adhered to the register copy or premium register; . . ." your request is hereby granted subject to the following conditions: 1. that you should keep a Documentary Stamp Tax Register where all monthly purchases of documentary stamps made in advance are recorded and all serial numbers of policies issued during the day together with the amount of documentary stamp taxes due thereon are indicated, 2. that all policies issued should bear the following notation: "Documentary Stamp Tax paid under RTR No. _______ and CR No. ________ dated _________ in the amount of _______: Refer to Doc. Stamp Register Page No. _______." 3. that the Documentary Stamp Tax Register should be in bound form and registered first with this Office in loose-leaf blank sheets or plain paper but serially numbered; and 4. that to avoid the occurrence of a situation where the documentary stamp tax paid is less than the tax due for the month, you should put up a reserve fund to answer for any deficiency at the end of the month, the same to be replenished every now and then or as soon as the necessity arises. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner