Transfers of Certificates of Stock are Subject to the Documentary Stamp Tax

July 19, 1960 BIR RULING NO. 305-60 Honorable Jacobo Z. Gonzales House of Representatives M a n i l a S i r: In reply to your letter dated July 5, 1960, I have the honor to inform you that transfers of certificates of stock are subject to the documentary stamp tax prescribed in Section 213 of the National Internal Revenue Code at the rate of ten centavos on each two hundred pesos or fractional part thereof, of the par value of such certificates. The fact that there was no consideration for such transfer does not avoid the imposition of the documentary stamp tax. The donor and donee are also subject to the donor's and donee's tax at the rates prescribed in Section 109 and 110, both of the National Internal Revenue Code. In this connection, attention is invited to the provisions of section 106 of the same Code which reads as follows: "SEC. 106. Payment of tax antecedent to the transfer of shares, bonds, or rights . There shall not be transferred to any new owner in the books of any corporation, sociedad anonima , partnership, business, or industry, organized or established in the Philippines, any shares obligations, bonds, or rights by way of gift inter vivos or mortis causa, legacy, or inheritance unless it is shown that the taxes fixed in this Title and due thereon have been paid." cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue