Publishing pertinent portions of Republic Act No. 7660 authorizing the increase in the imposition of documentary stamp tax on certain documents beginning January 01, 1996

January 4, 1996 REVENUE MEMORANDUM CIRCULAR NO. 02-96 SUBJECT : Publishing Pertinent Portions of Republic Act No. 7660 Authorizing the Increase in the Imposition of Documentary Stamp Tax on Certain Documents Beginning January 01, 1996 TO : All Internal Revenue Officers and Others Concerned For the proper collection of documentary stamp taxes on certain documents, quoted hereunder are portions of Republic Act No. 7660: "REPUBLIC ACT NO. 7660" xxx xxx xxx SEC. 4. Section 176 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows: "SEC. 176. Stamp Tax on sales, agreements to sell, memoranda of sales, deliveries or transfer of due bills, certificates of obligations, or shares of certificate of stocks . On all sales, or agreements to sell, or memoranda of sales, or deliveries, or transfer of due bills, certificates of obligation, or shares or certificates of stocks in any associations, company or corporation, or transfer of such securities by assignment in blank, or by delivery, or by any paper or agreement, or memorandum or other evidences of transfer or sale whether entitling the holder in any manner to the benefit of such due bills, certificates of obligation, or stock, or to secure the future payment of money, or for the future transfer of any due bill, certificates of obligation or stock, there shall be collected a documentary stamp tax of One peso (P1.00) on each two hundred pesos, or fractional part thereof, of the par value of such due bill, certificates of obligation or stock: Provided, That only one tax shall be collected on each sale or transfer of stock or securities from one person to another, regardless of whether or not a certificate of stock or obligation is issued, endorsed, or delivered in pursuance of such sale or transfer; and Provided, further, That in the case of stock without par value the amount of the documentary stamp herein prescribed shall be equivalent to twenty five per centum of the documentary stamp tax paid upon the original issue of said stock: PROVIDED, FURTHERMORE, THAT THE TAX HEREIN IMPOSED SHALL BE INCREASED TO ONE PESO AND FIFTY CENTAVOS (P1.50) BEGINNING 1996." xxx xxx xxx SEC. 6. Section 179 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows: "SEC. 179. Stamp tax on bank checks, drafts, certificates of deposits not bearing interest and other instruments . On each bank check, draft or certificate of deposit not drawing interest, or order for the payment of any sum of money drawn upon issued by any bank, trust company, or any person or persons, companies or corporations, at sight or on demand, there shall be collected a documentary stamp tax of One peso and twenty five centavos (P1.25); PROVIDED, THAT THE TAX HEREIN IMPOSED SHALL BE INCREASED TO ONE PESO AND FIFTY CENTAVOS (P1.50) BEGINNING 1996." xxx xxx xxx SEC. 11. Section 187 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows: "SEC. 187 Stamp tax on indemnity bonds . On all bonds for indemnifying any person, firm or corporation who shall become bound or engaged as surety for the payment of any sum of money or for the due execution of performance of the duties of any office or position or to account for money received by virtue thereof, and on all other bonds of any description, except such as may be required in legal proceedings, or are otherwise provided herein, there shall be collected a documentary stamp tax of Ten centavos (P0.10) on each four pesos, or fractional part thereof of the premium charged: PROVIDED, THAT THE TAX HEREIN IMPOSED SHALL BE INCREASED TO THIRTY CENTAVOS (P0.30) ON EACH FOUR PESOS OR FRACTIONAL PART THEREOF OF THE PREMIUM CHARGED BEGINNING 1996." SEC. 12. Section 188 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows: "SEC. 188. Stamp tax on certificates . On each certificate of damage or otherwise, and on every other certificate or document issued by any customs officer, marine surveyor, or other person acting as such, and on each certificate issued by a notary public, and on each certificate of any description required by law or by rules or regulations of a public office, or which is issued for the purpose of giving information, or establishing proof of a fact, and not otherwise specified herein, there shall be collected a documentary stamp tax of Ten pesos (P10.00): PROVIDED, THAT THE TAX HEREIN IMPOSED SHALL BE INCREASED TO FIFTEEN PESOS (P15.00) BEGINNING 1996." xxx xxx xxx SEC. 13. Section 189 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows: "SEC. 189. Stamp tax on warehouse receipts . On each warehouse receipt for property held in storage in a public private warehouse or yard for any other person other than the proprietor of such warehouse or yard, there shall be collected a documentary stamp tax of Ten pesos (P10.00): Provided, That no tax shall be collected on each warehouse receipt issued to any one person in any one calendar month covering property the value of which does not exceed two hundred pesos: PROVIDED, FURTHER, THAT THE TAX HEREIN IMPOSED SHALL BE INCREASED TO FIFTEEN PESOS (P15.00) BEGINNING 1996." SEC. 16. Section 192 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows: "SEC. 192. Stamp tax on proxies . On each proxy for voting at any election for officers of any company or association, or for any other purpose, except proxies issued affecting the affairs of associations or corporations organized for religious, charitable, or literary purposes, there shall be collected a documentary stamps tax of ten peso (P10.00): PROVIDED, THAT THE TAX HEREIN IMPOSED SHALL BE INCREASED TO FIFTEEN PESOS (P15.00) BEGINNING 1996." For easy reference, tabulated hereunder are the documentary stamp tax rates before 1996 and the rates beginning January 1, 1996: Feature of the changes: Prior Beginning Documents enumerated under: January 1, 1996 January 1, 1996 Section 176 XXX P1.00 P1.50 Section 179 XXX 1.25 1.50 Section 187 XXX 0.10 0.30 Section 188 XXX 10.00 15.00 Section 189 XXX 10.00 15.00 Section 192 XXX 10.00 15.00 You are hereby directed to strictly implement the foregoing provisions of the Tax Code effective January 01, 1996. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue