Transition Procedures for All Taxpayers Affected by the Revised Tax Rates on Documentary Stamp Tax Pursuant to the Provisions of Republic Act (RA) No. 10963, Otherwise Known as the Tax Reform for Acceleration and Inclusion (TRAIN)

January 4, 2018 REVENUE MEMORANDUM CIRCULAR NO. 003-18 SUBJECT : TransitionProcedures for All Taxpayers Affected by the Revised TaxRates on Documentary StampTax Pursuant to the Provisions of Republic Act (RA) No.10963, Otherwise Known as the TaxReform for Acceleration andInclusion (TRAIN) TO : All Internal Revenue Officials, Employees and Others Concerned This Circular is issued to provide transition procedures for all taxpayers who are affected in filing the documentary stamp tax returns (BIR Form Nos. 2000 and 2000-OT) due to the revised tax rates pursuant to the provisions of RA No. 10963. The abovementioned BIR forms are being enhanced and the Alphanumeric Tax Codes (ATCs) affected by the increase in tax rates are as follows: BIR Form No. Form Name ATC Affected Changes in Tax Rate 1. 2000 Documentary Stamp Tax Declaration/Return DS 101, 102, 104 to 109, 112, 114 to 121, 125, 126, 130 to 132 Increase in the tax rate is 100% except for DS 106, which is 50% only 2. 2000-OT Documentary Stamp Tax Declaration/Return One Time Transactions DS 102 and 125 Increase in the tax rate is 100% The changes in tax rates mentioned above are not yet reflected and implemented in the following: 1. Electronic Filing and Payment System (eFPS); 2. Electronic Bureau of Internal Revenue Forms (eBIRForms); and 3. Manual Forms thus, the following work around procedures in filing the BIR Form/Return mentioned above shall be adopted by the following taxpayers: 1. eFPS Filers of BIR Form No. 2000 shall a) Use the existing BIR form in the eFPS; b) Fill in the required information ( e.g. , date of transactions, parties to the transactions, etc.); c) Click and choose the applicable ATC, nature of transaction, tax rate and tax due will automatically appear; d) Change the amount of tax due computed by the system with the correct amount using the new tax rate as follows: ATC Description New Tax Rate a. DS 101 Original issue of Shares of Stocks P2.00 /200 b. DS 102 Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of Shares or Certificates of Stock with par value P1.50 /200 c. DS 125 In case of stock without par value 50% of DST paid on original issue d. DS 104 Certificates of Profits or Interest in Property or Accumulations P1.00 /200 e. DS 105 Bank Checks, Drafts, Certificates of Deposit not Bearing Interest and Other Instruments P3.00 f. DS 106 Original Issue of All Debt Instruments P1.50 /200 of issue price or a fraction of 365 days for instrument with term of less than 1 year g. DS 107 Acceptance of Bills of Exchange or Order drawn in a Foreign Country but payable in the Philippines P0.60 /200 h. DS 108 Foreign Bills of Exchange and Letters of Credit P0.60 /200 i. DS 109 Life Insurance Policies amount: Does not exceed P100,000 Exempt Exceeds P100,000 but does not exceed P300,000 P20.00 Exceeds P300,000 but does not exceed P500,000 P50.00 Exceeds P500,000 but does not exceed P750,000 P100.00 Exceeds P750,000 but does not exceed P1,000,000 P150.00 Exceeds P1,000,000 P200.00 j. DS 112 Policies of Annuities P1.00 /200 of the premium or installment payment on contract price collected Pre-Need Plans P0.40 /200 of the premium or contribution collected k. DS 114 Certificates (Sec. 188 of the Tax Code) P30.00 l. DS 115 Warehouse Receipts P30.00 with value above 200 m. DS 116 Jai-alai, Horse Race Tickets, Lotto or Other Authorized Number Games P0.20 /P1.00 n. DS 117 Bills of Lading or Receipts P100.00 to P1,000 P2.00 Above P1,000 P20.00 o. DS 118 Proxies for voting at any election P30.00 p. DS 119 Powers of Attorney P10.00 q. DS 120 Leases and Other Hiring Agreements 1st P2,000 P6.00 In excess ( P2.00 /P1,000) r. DS 121 Mortgages, Pledges and Deeds of Trust 1st P5,000 P40.00 In excess ( P20.00 /P5,000) s. DS 126 Bills of Exchange or Drafts P0.60 on each P200 Charter Parties and Similar Instruments if gross tonnage of the ship, vessel or steamer is: t. DS 130 1,000 tons and below 1st 6 months P1,000 In excess + P100 u. DS 131 1,001 to 10,000 tons 1st 6 months P2,000 In excess + P200 v. DS 132 Over 10,000 tons 1st 6 months P3,000 In excess + P300 e) File the return then proceed to payment and pay the corrected tax due thereon. 2. eBIRForms Users/Filers of BIR Form Nos. 2000 and/or 2000-OT shall 1. File online using the existing BIR form in the eBIRForms Package then pay the corresponding taxes due thereon via: a) Online payment thru GCash, Landbank Electronic Payment Service (LBEPS) or BIR-DBP PayTax Online (BDPTO); or b) Manual payment via over-the-counter (OTC) of Authorized Agent Banks (AABs) under the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered. 2. The above transactions will result to deficiency tax, and to cover the deficiency tax, eBIRForms users/filers shall likewise file online and pay online, thru GCash, LBEPS or BDPTO, or pay manually via OTC of AABs under the jurisdiction of the RDO where the taxpayer is registered, the deficiency tax using BIR Form No. 0605 and fill in the corresponding information in the Tax Type and ATC fields stated below in lieu of the correct BIR form that should have been used: Supposed BIR Form to be Used Tax Type ATC 1. 2000 DS Documentary Stamp Tax All eBIRForms filers shall use ATC MC 031 Deficiency Tax 2. 2000-OT DO Documentary Stamp Tax One Time 3. Manual Filers of BIR Form Nos. 2000 and/or 2000-OT shall 1. Fill-in the applicable BIR form [pre-printed or downloaded form in BIR website ( www.bir.gov.ph ) under the BIR Forms section of the website] using the new tax rates then compute the tax due thereon. 2. File and pay manually via OTC of AABs under the jurisdiction of the RDO where the taxpayer is registered. All concerned taxpayers shall be responsible in ensuring that the correct tax due is being declared and paid for accordingly. Any deficiency taxes that will be discovered in the validation/audit process shall be subjected to all applicable penalties incident thereto in accordance with existing rules and regulations. All concerned are hereby enjoined to be guided accordingly and give this Circular as wide a publicity as possible. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue