Supplementary Revenue Memorandum Circular to Revenue Memorandum Circular No. 33-86, Publishing Questions and Answers to Documentary Stamp Tax

April 6, 1987 REVENUE MEMORANDUM CIRCULAR NO. 13-87 SUBJECT : Supplementary Revenue Memorandum Circular to Revenue Memorandum Circular No. 33-86, Publishing Questions and Answers to Documentary Stamp Tax TO : All Internal Revenue Officers and Others Concerned The following are questions and answers which were discussed in a series of conferences between the BIR Committee on Banks and representatives of the Banker's Association of the Philippines (BAP), the Philippine Association of Finance Companies, Inc. (PAFCI), the Investment Houses Association of the Philippines (IHAP), and the Central Bank of the Philippines. Question 1. Are documents of conveyance where the primary underlying instrument are those defined under Section 229 subject to DST? If so, at what rate? And who is liable? Ans. A) Per NIRC Section 225 (now renumbered 189), DST shall be affixed "on all sales or agreement to sell or transfer of bonds, due bills, certificates of obligations or shares of stock in any association, company, or corporation." Based on this, all documents of conveyances covering instruments stipulated in NIRC Section 223 (now renumbered 187) and Section 224 (now renumbered 188) shall be subject to DST. Since NIRC Section 225 (now renumbered 189) applies only to documents of conveyances covering instruments stated in NIRC Sections 223 and 224, it follows that documents of conveyance covering instruments stated in NIRC Section 229 are not subject to DST. B) Said documents of conveyances shall be subject to P0.50 per P200.00 or fractional part thereof of the par/face value. C) Per NIRC Section 222 (now renumbered 186), the person making, signing, issuing, accepting or transferring the documents or instruments stated in NIRC Section 223 and 224 shall be responsible for the DST. Provided , That whenever one party to the taxable document enjoys exemption from the tax herein imposed, the other party who is not exempt shall be the one directly liable for the tax. Question 2: Are deposit substitutes, as defined by Central Bank Circulars/ MAABs and existing Presidential Decrees, subject to DST under NIRC Section 223 (now renumbered 187)? acd Ans. No. Section 223 (now renumbered 187) covers only capital or quasi-capital instruments such as "bonds, debentures, and certificates of indebtedness issued by any association, company or corporation." However, deposit substitutes, as defined by Central Bank Circular/ MAABs and existing Presidential Decrees, are covered under NIRC Section 229 (now renumbered 193) and as such is subject to a DST of P0.20 per every P200.00 or fractional part thereof, of the face value. All Internal Revenue Officials and Others Concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity possible. (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue