Non-registration of the Pledge Contract Forms Issued by Pawnbrokers

March 30, 1959 BIR RULING NO. 167-59 4th Indorsement Returned to the Regional Director, BIR Regional District No. 3, Manila, the herein papers bearing on the query of Mr. Nicetrato A. D. Elvia with the following information: cdt Pledge contract forms issued by pawnbrokers in their business transactions with their customers (the pledgors) need not be registered with this Bureau prior to their use. The said forms are merely the written agreements entered into by and between the parties to a pledge. The same do not come within the meaning of a sales invoice or receipt notwithstanding any similarities between them. A contract of pledge, like any other contract such as that of a sale, loan, or mortgage, stipulates the obligations of the parties thereto; whereas, a sales invoice or receipt evidences payment of a thing or service. There is no law or regulation requiring the registration with this Office of contract forms, such as the form in question, prior to their use. Precisely, it is for this reason that this Office does not require the registration before use of contract forms like deeds of sale, loan, mortgage, assignment, or any contract transferring ownership of or encumbering properties. However, pawnbrokers should issue a receipt for every payment they receive whether of the interest or the principal. These receipts should be approved by and registered with this Office prior to their use. (SGD.) JOSE ARAAS Commissioner of Internal Revenue