Publishing Republic Act No. 6110, Amending Among Others, Sections 221, 226, 227, 236 of Title VI — Documentary Stamp Tax, National Internal Revenue Code

February 10, 1970 REVENUE MEMORANDUM CIRCULAR NO. 09-70 SUBJECT : Publishing Republic Act No. 6110, Amending Among Others, Sections 221, 226, 227, 236 of Title VI Documentary Stamp Tax, National Internal Revenue Code TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder the pertinent sections of Republic Act No. 6110, amending certain sections of Title VI of the National Internal Revenue Code, as amended, relating to documentary stamp tax, viz.: " Republic Act No . 6110 " An Act Amending Certain Provisions Of The National Internal Revenue Code, As Amended " Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled : xxx xxx xxx "SEC. 42. Section two hundred and twenty-one of the same Act, is hereby amended to read as follows: 'SEC. 221. Stamp tax on policies of insurance upon property . On all policies of insurance or other instruments by whatever name the same may be called, by which insurance shall be made or renewed upon property of any description, including rents or profits, against peril by sea or on inland waters, or by fire or lightning, there shall be collected a documentary stamp tax of six centavos on each four pesos, or fractional part thereof, of the amount of the premium charged: Provided , however , That no documentary stamp tax shall be collected on reinsurance contracts or on any instrument by which cession or acceptance of insurance risks under any reinsurance agreement is effected or recorded.' "SEC. 43. Section two hundred and twenty-six of the same Act is hereby amended to read as follows: '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 on each twenty pesos or fractional part thereof.' "SEC. 44. Section two hundred and twenty-seven of the same Act is hereby amended to read as follows: 'SEC. 227. Stamp Tax on Bills of Lading or Receipts . On each set of bills of lading or receipts (except charter party) for any goods, merchandise, or effects shipped from one port or place in the Philippines to another port or place in the Philippines (except on ferries across rivers), or to any foreign port, there shall be collected a documentary stamp tax of six centavos, if the value of such goods exceeds five pesos and does not exceed two hundred pesos; fifteen centavos, if the value exceeds two hundred pesos and does not exceed one thousand pesos; thirty centavos, if the value exceeds one thousand pesos and does not exceed five thousand pesos; seventy-five centavos, if the value exceeds five thousand pesos and does not exceed ten thousand pesos; and one peso and fifty centavos, if the value exceeds ten thousand pesos: Provided , however , That freight tickets covering goods, merchandise, or effects carried as accompanied baggage of passengers on land and water carriers primarily engaged in the transportation of passengers are hereby exempt.' "SEC. 45. Section two hundred and thirty-six of the same Act is hereby amended to read as follows: 'SEC. 236. Documents and papers not subject to stamp tax . The following instruments, documents, and papers shall be exempt from the documentary stamp tax: '(1) Bonds, debentures, and certificates of indebtedness issued by the Government of the Republic of the Philippines or the government of any province, city, or municipality. '(2) Checks, drafts, warrants, and bills of exchange issued in payment of any debt, obligation, or liability or in fulfillment of any contract of the Government of the Republic of the Philippines or the government of any province, or municipality; and similar instruments issued in payment of pensions, gratuities, or compensation of veterans, their widows, heirs or dependents. '(3) Policies of insurance or annuities made or granted by a fraternal or beneficiary society, order, association, or cooperative company, operated on the lodge system or local cooperation plan and organized and conducted solely by the members thereof for the exclusive benefit of its members and not for profit. '(4) Certificates of oaths administered to any government official in his official capacity or of acknowledgment by any government official in the performance of his official duties, written appearances in any court by any government official, in his official capacity; certificates of the administration of oaths to any person as to the authenticity of any paper required whether to be filed in court by any person or party thereto, whether the proceedings be civil or criminal; papers and documents filed in courts by or for the national, provincial, city, or municipal governments, affidavits of poor persons for the purpose of proving poverty; statements and other compulsory information required of persons or corporations by the rules and regulations of the national, provincial, city or municipal governments exclusively for statistical purposes and which are wholly for the use of the bureau or office in which they are filed, and not at the instance or for the use or benefit of the person filing them; certified copies and other certificates placed upon documents, instruments, and papers for the national, provincial, city or municipal governments, made at the instance and for the sole use of some other branch of the national, provincial, city or municipal governments; and certificates of the assessed value of lands, not exceeding two hundred pesos in value assessed, furnished by provincial, city or municipal treasurer to applicants for registration of title to land. 'When any bond, note, or other obligation is secured by a mortgage, pledge, deed of trust, or by the assignment or transfer of any documentary security, one tax only shall be collected upon these papers, the tax to be at the highest rate imposed on the mortgage, bond, note, obligation, or other documents, as the case may be.' xxx xxx xxx "SEC. 68. Effectivity Clause . This Act shall take effect on September 1, 1969: Provided , That where at the time of death or within six months thereafter no schedule of values as provided in Section 19 of this Act has been fixed in the areas where the properties of the decedent are located, the assessed values as shown in the tax rolls shall be considered as the fair market value, unless the contrary is shown: Provided , further , That the provisions of Sections 6, 11, 12, 13, 14, 15, and 16 of this Act shall apply to the entire taxable year in which this Act is approved: Provided , still further , That the provisions of Sections 76 and 77 of this Act shall be effective on July 1, 1970: Provided , finally , That the second paragraph of Section 358 as amended by this Act, shall be effective only for a period of four years from July 1, 1969 unless extended. "APPROVED: August 4, 1969 . . ." FEATURES OF THE AMENDMENTS 1. Sec. 221. Stamp tax on policies on insurance upon property ; reinsurance contracts . Under Section 221, as herein amended, reinsurance contracts or any instrument by which cession or acceptance of insurance risks upon property of any description under any reinsurance agreement is effected or recorded are no longer subject to documentary stamp tax. 2. Sec. 226. Hotel receipts . Hotel receipts issued by keepers of motels, resthouses and resorts, as in the case of hotels and lodging houses before the amendment, are now subject to documentary stamp tax, at an increased rate from P0.50 to P1.00 for each receipt of twenty pesos or fractional part thereof. 3. Sec. 227. Accompanied baggage of passengers . Freight tickets covering goods, merchandise or effects carried as accompanied baggage of passengers on land and water carriers principally engaged in transportation of passengers are now exempt from documentary stamp tax. 4. Sec. 236. Documents and papers not subject to stamp tax . The provision exempting from documentary stamp tax on checks, drafts, warrants and bills of exchange "issued in payment of salaries or wages of personnel of the United States Army or Navy" was deleted in the amendment, and therefore, unless otherwise provided by any special law or treaty with the United States, are now subject to the corresponding documentary stamp tax. Effectivity Republic Act No. 6110 took effect September 1, 1969. Enforcement and Publicity All internal revenue officers and others concerned are hereby enjoined to be guided accordingly and to give this Circular as wide publicity as possible. MISAEL P. VERA Commissioner of Internal Revenue APPROVED: CESAR VIRATA Acting Secretary of Finance