Amendments to Regulations No. 26

August 8, 1933 DOF REGULATIONS NO. 077-33 1 SUBJECT : Amendments to Regulations No. 26 TO : All Internal-Revenue Officers and Others Concerned SECTION 1. Section 203 of Regulations No. 26 of this Department is hereby amended to read as follows: SEC. 203. Manner of payment of documentary stamp tax. The payment of the documentary stamp tax imposed in section 1449 of the Administrative Code, as amended by Acts Nos. 3047 and 3709, shall be made by the purchase and affixture of documentary stamps of the proper value to the document or instrument sought to be taxed or to any other paper which the law indicates as the proper recipient of the stamp: Provided, That in cases of warehouse receipts, certificates of stock, passage tickets, and other documents having stubs or duplicates kept by the persons issuing the same, the documentary stamps shall be adhered to the stubs or to the duplicates thereof, and that a note properly initialed by a responsible person on the face of such documents shall be made as follows: "Documentary stamps to the value of P ___________ have been affixed to the stub, or to the duplicate (as the case may be)." Provided, further, That where the use of the Pitney-Bowes Postage Meter and Machine, or the like, for the manufacture and printing of documentary stamps on documents or instruments subject to tax is permitted by the Collector of Internal Revenue, the payment of the tax due shall be accomplished by the filing of proper requisition for stamps intended to be manufactured and printed with the Collector of Internal Revenue and by the payment of the value of the stamps so requisitioned. SECTION 2. Section 207 of same Regulations No. 26 is also hereby amended to read as follows: SEC. 207. Sales of documentary stamps; requisition and records to be kept therefor by shipping companies, bank establishments, and insurance companies. Deputy provincial treasurers and city treasurers shall sell documentary stamps to any person who shall apply for same. Documentary stamps for use in the payment of taxes by shipping companies, bank establishments, and insurance companies shall be purchased on the stamp requisition form (B.I.R. Form No. 3.06) to be furnished free of charge by the Bureau of Internal Revenue. This form is ordinarily used for requisitioning internal-revenue stamps to be used by manufacturers of distilled spirits and liquors under Administrative Schedule A, so that when such form is used for requisitioning documentary stamps to be used by shipping companies, bank establishments, and insurance companies, the words "Schedule A" and "Internal Revenue Stamps" appearing thereon shall be changed to "Schedule J" and "Documentary Stamps," respectively. The denominations of P100, P3, and 4-centavo documentary stamps which are not indicated in the said form may be inserted therein in ink when requisition therefor will be made. Documentary stamps purchased by shipping companies, bank establishments, and insurance companies shall be entered in the debit side of a record book to be prepared and kept for this purpose, showing the date of purchase of stamps, the quantity of each denomination of stamps purchased, and the total value thereof. All documentary stamps used shall also be entered on the credit side of the same record book, showing, in the case of shipping companies, the date when used, the quantity by denomination, the total value thereof, the number of the passage ticket for which the stamps had been used, and class and cost of the ticket, the name of the passenger to whom the ticket was issued, and the country of destination; and, in the case of bank establishments and insurance companies, the date of the affixture of the stamps to the documents sought to be taxed, the quantity, denomination and value of stamps affixed, and the total value thereof: Provided, however, That in cases where the manufacture or printing of documentary stamps by the use of the Pitney-Bowes Postage Meter and Machine, or the like, is permitted by the Collector of Internal Revenue, the value of the stamps purchased or requisitioned by shipping companies, bank establishments, and insurance companies shall be entered in the debit side of the record book aforesaid and the value of the stamps actually used, manufactured or printed, shall be entered on the credit side of the same, in separate columns. ITSaHC At the end of each month and not later than the eighth day of the next succeeding month, the manager of shipping companies, bank establishments, and insurance companies in the Philippine Islands, shall make and submit a report to the Bureau of Internal Revenue, showing the quantity by denominations of all stamps on hand on the first day of the month, the stamps purchased and used during the month just ended, and the balance on hand at the end of the said month. Where the manufacture or printing of documentary stamps by the use of the Pitney-Bowes Postage Meter and Machine, or the like, is permitted by the Collector of Internal Revenue, it shall be necessary for the owner of the machine or meter, or any person in possession thereof to first submit a written requisition for stamps to be so manufactured or printed to the Collector of Internal Revenue to be accomplished on B.I.R. Form No. 3.06 and to pay the corresponding value of the stamps requisitioned. SECTION 3. Regulations No. 26 aforesaid is hereby amended by adding the following section: SEC. 210 1/2. Permit to use machines for the manufacture and printing of documentary stamps. No person, company, association, or corporation doing business in the Philippine Islands shall be permitted to use the Pitney-Bowes Postage Meter and Machine, or the like, for the manufacture and printing of documentary stamps to be affixed to documents or papers subject to the tax established in section 1449 of the Administrative Code, as amended, without first securing the necessary permit therefor from the Collector of Internal Revenue: Provided, That the granting and issuance of such permit shall be subject to the following conditions: (1) That the Collector of Internal Revenue shall in every case be notified in writing of any contract or agreement of lease of any meter or machine to be used for the manufacture of documentary stamps, by the lessor or owner of the meter or machine, as well as the name and business address of the lessee. (2) That the meter or machine sought to be leased or rented, as well as the keys therefor, shall be consigned to the Collector of Internal Revenue, Manila, and such meter or machine shall be set, locked and sealed in the presence of the Collector of Internal Revenue, or his duly authorized representative, and of the Insular Auditor, or the duly authorized representative of the latter. SECTION 4. Effective Date. These regulations shall become effective upon their promulgation in the Official Gazette. cSHIaA Manila, August 8, 1933. VICENTE SINGSON ENCARNACION Acting Secretary of Finance Recommended by: JUAN POSADAS, JR. Collector of Internal Revenue Footnotes 1. Promulgated September 5, 1933, XXXI Off. Gaz., 106, page 2724.