Amount of Documentary Stamp Tax Payable in a Loan Evidenced by a Promissory Note and secured by a Real Estate Mortgage and Chattel Mortgage

December 8, 1981 BIR RULING NO. 260-81 248-00 000-74 260-81 Philippine National Bank Escolta, Manila Attention: Mr . Pascual H . Castillo Senior Vice President Gentlemen : This refers to your letter dated March 17, 1981 requesting for a ruling on the amount of documentary stamp tax payable and the manner of affixing said stamps in case of a loan evidenced by a negotiable promissory note and secured by a real estate mortgage and chattel mortgage. cdta In reply, I have the honor to inform you that under Section 248 of the Tax Code of 1977, as amended, "when any bond, note or other obligation is secured by a mortgage, pledge or deed of trust, or by assignment or transfer of any documentary security, one tax only shall as collected upon these papers, the tax to be at the highest rate imposed on the mortgage, bond, note, obligation, or other documents, as the case may be." Accordingly, on a loan obtained from that bank which is evidenced by a promissory note and secured by a real estate mortgage and a chattel mortgage, the borrower thereof is subject only to one documentary stamp on all the said note, real estate mortgage and chattel mortgage, the tax being based on the document having the highest rate. The stamp tax paid may be affixed on the document upon which the amount of tax is based. Very truly yours, RUBEN B. ANCHETA Acting Commissioner