Publishing the Amendments Effected by Presidential Decree No. 69 to Title VI of the National Internal Revenue Code

January 9, 1973 REVENUE MEMORANDUM CIRCULAR NO. 06-73 SUBJECT : Publishing the Amendments Effected by Presidential Decree No. 69 to Title VI of the National Internal Revenue Code TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is published below certain sections of Title VI of the National Internal Revenue Code, as amended by Presidential Decree No. 69, viz.: Title VI Documentary Stamp Tax SEC. 219. Stamp Tax on Foreign Bills of Exchange and Letters of Credit . On all foreign bills of exchange and letters of credit (including orders, by telegraph or otherwise, for the payment of money issued by express or steamship companies or by any person or persons) drawn in but payable out of the Philippines in a set of three or more according to the custom of merchants and bankers, there shall be collected a documentary stamp tax of eight centavos on each two hundred pesos, or fractional part thereof, of the face value of any such bill of exchange or letter of credit, or the Philippine equivalent of such face value, if expressed in foreign currency. SEC. 220 Stamp Tax on Life Insurance Policies . On all policies of insurance or other instruments by whatever name the same may be called, whereby any insurance shall be made or renewed upon any life or lives, there shall be collected a documentary stamp tax of sixteen centavos on each two hundred pesos or fractional part thereof, of the amount insured by any such policy. SEC. 226 Stamp Tax on Warehouse, Motel and Hotel Receipts and Others . (a) On each warehouse receipt for property held in storage in a public or private warehouse or yard for any other person than the proprietor of such warehouse or yard himself, there shall be collected a documentary stamp tax of thirty centavos: 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. (b)On each hotel receipt issued by keepers of hotels, motels, resthouses, lodging houses or resorts to a guest for lodging, there shall be collected a documentary stamp tax of one peso: Provided, however , That if the amount of the receipt exceeds twenty pesos an additional tax of one peso on each twenty pesos or fractional part thereof shall be collected. SEC. 226-A Stamp Tax on Jai-Alai or Horse Race Tickets . On each Jai-Alai or horse race ticket, there shall be collected a documentary stamp tax of five centavos: Provided , That if the cost of the ticket exceeds one peso, an additional tax of five centavos on every one peso or fractional part thereof shall be collected. FEATURES OF THE AMENDMENT Amendment to Section 219 : Stamp Tax on Foreign Bills of Exchange and Letters of Credit . The amendment to this section consists merely in the increase of the rate of tax on said instruments from P.06 to P.08 on each P200, or fractional part thereof, of the face of any such bill of exchange or letter of credit. Amendment to Section 220 : Stamp Tax on Life Insurance Policies . The amendment to this section also consists merely in the increase of the tax on said documents from P.15 to P.16 on each P200, or fractional part thereof, of the amount insured by any such policy. Amendment to Section 226 : Stamp Tax on Warehouse, Motel and Hotel Receipts and Others . Only subsection (b) of this section was amended, and the amendment consists purely in the restructuring of the provisions of the subsection to make clear that any such receipt is subject to P1.00 tax even if the value thereof is less than P20.00. New Section 226-A : Stamp Tax on Jai-Alai or Horse Race Tickets . This new section imposes a documentary stamp tax of P.05 on each jai-alai or horse race ticket. The tax attaches to such tickets regardless of the value or cost thereof. However, if the cost thereof exceeds P1.00, an additional tax of P.05 is imposed on each P1.00 of such excess or fractional thereof. Pursuant to R.A. No. 5448, a science stamp tax equal to the internal revenue stamp tax on said should likewise be collected. EFFECTIVITY All of the amendments to Title VI of the National Internal Revenue Code take effect on January 1, 1973. ENFORCEMENT All internal revenue officers and others concerned are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. aisa dc MISAEL P. VERA Commissioner of Internal Revenue APPROVED: CESAR VIRATA Secretary of Finance