U.P. Mortgage in Favor of Pag-ibig Exempt from Documentary Stamp Tax

July 30, 1993 BIR RULING NO. 344-93 U.P. MORTGAGE IN FAVOR OF PAG-IBIG EXEMPT FROM DOCUMENTARY STAMP TAX 195 00-00 44-93 Mr. Jose B. Abueva President, University of the Philippines Diliman, Quezon City This refers to your letter June 17, 1993 requesting exemption of the University of the Philippines (U.P.) from paying documentary stamp tax in connection with the registration in Baguio City of an Amendment of Mortgage entered into by and between U.P. and the Home Development Mutual Fund (Pag-ibig Fund.) It is represented that a real estate mortgage was previously constituted by U.P. in favor of Pag-ibig Fund to secure the payment of a P131 million rental housing construction loan availed of by U.P. to finance the construction of housing units for its faculty and staff; that the mortgage covers the 18 apartment buildings to be constructed in U.P. Diliman from the loan; that to register the mortgage agreement, U.P. paid P131,005.00 as documentary stamp tax under Confirmation Receipt No. 24324132 dated November 28, 1991; that recently one of the 18 buildings was relocated to U.P. Baguio which is now the object of the Amendment of Mortgage; and that since the corresponding amount of documentary stamp tax has already been paid on November 28, 1991 for the same amount of loan, U.P. is no longer liable for the payment of documentary stamp tax for the registration of the Amendment of Mortgage in Baguio City. In reply thereto, I have the honor to inform you that since U.P. had already paid the documentary stamp tax in the amount of P131,005.00 on the Real Estate Mortgage on November 28, 1991, under Confirmation Receipt No. 24324132 for the aforementioned loan of P131 million, the Amendment of Mortgage which will only relocate the construction of one (1) of the apartment buildings from U.P. Diliman to U.P. Baguio in order to provide affordable rental housing units of U.P. Baguio faculty members and administrative staff, U.P. is no longer liable to pay the documentary stamp tax on the registration of the Amendment of Mortgage. cdtech LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue