Publishing Sections 223 to 246, Inclusive of the National Internal Revenue Code of 1977, as Amended by Presidential Decree No. 1959, Increasing the Documentary Stamp Tax Rates on Certain Documents

October 15, 1984 REVENUE MEMORANDUM CIRCULAR NO. 27-84 SUBJECT : Publishing Sections 223 to 246, Inclusive of the National Internal Revenue Code of 1977, as Amended by Presidential Decree No. 1959, Increasing the Documentary Stamp Tax Rates on Certain Documents TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, published hereunder are Sections 223 to 246 of the National Internal Revenue Code of 1977, as amended, by PD 1959. cd i SECTION 19. Section 223 of this Code, as amended, is hereby further amended to read as follows: "Sec. 223. Stamp tax on bonds, debentures, and certificate of indebtedness. On all bonds, debentures and certificates of indebtedness issued by any association, company, or corporation, there shall be collected a documentary stamp tax of one peso on each two hundred pesos, or fractional part thereof, of the face value of such documents." SECTION 20. Section 224 of this Code, as amended, is hereby further amended to read as follows: "Sec. 224. Stamp tax on original issue of certificates of stock. On every original issue, whether on organization, reorganization or for any lawful purpose, of certificates of stock by any association, company, or corporation, there shall be collected a documentary stamp tax of one peso and seventy centavos on each two hundred pesos, or fractional part thereof, of the par value of such certificates: Provided , That in the case of the original issue of stock without par value the amount of the documentary stamp tax herein prescribed shall be based upon the actual consideration received by the association, company, or corporation for the issuance of such stock, and in the case of stock dividends, on the actual value represented by each share." SECTION 21. Section 225 of this Code, as amended, is hereby further amended to read as follows: "Sec. 225. Stamp tax on sales, agreements to sell, memoranda of sales, deliveries or transfer of bonds, due-bills, certificates of obligation, or shares or certificates of stocks. On all sales, or agreements to sell, or memoranda of sales, or deliveries, or transfer of bonds, due-bills, certificates of obligation, or shares or certificates of stock in any association, company, or corporation, or transfer of such securities by assignment in bank, 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 bonds, due-bills, certificates of obligation or stocks, or to secure the future payment of money, or for the future transfer of any bond, due-bill, certificates of obligation or stock, there shall be collected a documentary stamp tax of fifty centavos on each two hundred pesos, or fractional part thereof, of the par value of such bond, due-bills, 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, indorsed, 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 tax herein prescribed shall be equivalent to twenty-five per centum of the documentary stamp tax paid upon the original issue of said stock." SECTION 22. Section 227 of this Code, as amended, is hereby further amended to read as follows: "Sec. 227. Stamp tax on certificates of profits or interest in property or accumulations. On all certificates of profits, or any certificate or memorandum showing interest in the property or accumulations of any association, company, or corporation, and on all transfers of such certificates or memoranda, there shall be collected a documentary stamp tax of twenty centavos on each two hundred pesos, or fractional part thereof, of the face value of such certificate or memorandum." SECTION 23. Section 228 of this Code, as amended, is hereby further amended to read as follows: "Sec. 228. Stamp tax on bank checks, drafts, and other instruments. On each bank check, draft, or order for the payment of any sum of money drawn upon or issued by any bank, trust company, or any person or persons, companies or corporation, at sight or on demand, there shall be collected a documentary stamp tax of twenty centavos ." SECTION 24. Section 229 of this Code, as amended, is hereby further amended to read as follows: cd i "Sec. 229. Stamp tax on promissory notes, bills of exchange, drafts, certificates of deposit, debt instruments used for deposit substitutes and others not payable on sight or demand. On all bills of exchange (between points within the Philippines), drafts, or certificates of deposits, debt instruments used for deposit substitutes or orders for the payment of any sum of money otherwise than at sight or on demand, on all promissory notes, whether negotiable or non-negotiable, except bank notes issued for circulation, and on each renewal of any such note, there shall be collected a documentary stamp tax of twenty centavos on each two hundred pesos, or fractional part thereof, of the face value of any such bill of exchange, draft, certificate of deposit, debt instrument, or note." LLphil SECTION 25. Section 230 of this Code, as amended, is hereby further amended to read as follows: "Sec. 230. Stamp tax upon acceptance of bills of exchange and others. Upon any acceptance or payment of any bill of exchange or order for the payment of money purporting to be drawn in a foreign country but payable in the Philippines, there shall be collected a documentary stamp tax of thirty centavos on each two hundred pesos, or fractional part thereof, of the face value of any such bill of exchange, or order, or the Philippine equivalent of such value, if expressed in foreign currency." SECTION 26. Section 231 of this Code, as amended, is hereby further amended to read as follows: "Sec. 231. Stamp tax on foreign bills of exchange and letters of credit. On all foreign bills of exchange and letters of credit (including orders, by telegraphic 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 thirty centavos on each two hundred pesos, or fractional part thereof, of the face value of any such bill of exchange or letter of credit, of the Philippine equivalent of such face value, if expressed in foreign currency." casia SECTION 27. Section 232 of this Code, as amended, is hereby further amended to read as follows: "Sec. 232. 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 fifty centavos on each two hundred pesos or fractional part thereof, of the amount insured by any such policy." SECTION 28. Section 233 of this Code, as amended, is hereby further amended to read as follows: "Sec. 233. 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 documentary stamp tax of thirty centavos on each four pesos or fractional part thereof, of the amount of premium charged: Provided, however , That no documentary stamp tax shall be collected on reinsurance contracts or on any instruments by which cession or acceptance of insurance risks under any reinsurance agreement is effected or recorded." SECTION 29. Section 234 of this Code, as amended, is hereby further amended to read as follows: "Sec. 234. Stamp tax on fidelity bonds and other insurance policies. On all policies of insurance or bonds or obligations of the nature of indemnity for loss, damage or liability made or renewed by any person, association, company or corporation transacting the business of accident, fidelity, employer's liability, plate, glass, steam boiler, burglar, elevator, automatic sprinkler, or other branch of insurance (except life, marine, inland, and fire insurance), and all bonds, undertakings, or recognizances, conditioned for the performance of the duties of any officer or position, for the doing, or not doing of anything therein specified, and on all obligations guaranteeing the validity or legality of any bonds or other obligations issued by any province, city, municipality, or other public body or organization, and on all obligations guaranteeing the title to any real estate, or guaranteeing any mercantile credits, which may be made or renewed by any such person, company, or corporation, there shall be collected a documentary stamp tax of thirty centavos on each four pesos, or fractional part thereof, of the premium charged." cd SECTION 30. Section 235 of this Code, as amended, is hereby further amended to read as follows: "Sec. 235. Stamp tax on policies of annuities. On all policies of annuities, or other instruments by whatever name the same may be called, whereby an annuity may be made, transferred, or redeemed, there shall be collected a documentary stamp tax of one peso on each two hundred pesos, or fractional part thereof, of the capital of the annuity, or should this be unknown, then on each two hundred pesos, or fractional part thereof, of thirty-three and one-third times the annual income." - SECTION 31. Section 236 of this Code, as amended, is hereby further amended to read as follows: "Sec. 236. 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 or 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 for herein, there shall be collected a documentary stamp tax of three pesos and fifty centavos ." SECTION 32. Section 237 of this Code, as amended, is hereby further amended to read as follows: "Sec. 237. 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 three pesos ." acd SECTION 33. Section 238 of this Code, as amended, is hereby further amended to read as follows: "Sec. 238. 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 one peso and fifty 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 three pesos : Provided, however , that if the amount of the receipt exceeds twenty pesos an additional tax of three pesos on each twenty pesos or fractional part thereof shall be collected. SECTION 34. Section 239 of this Code, as amended, is hereby further amended to read as follows: "Sec. 239. 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 twenty centavos : Provided , That if the cost of the ticket exceeds one peso, an additional tax of twenty centavos on every one peso or fractional thereof shall be collected." SECTION 35. Section 240 of this Code, as amended, is hereby further amended to read as follows: "Sec. 240. 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 in accordance with the following schedule: cd i If the value of goods: Exceeds P100 but does not exceed P1,000 P0.50 Exceeds P1,000 but does not exceed P10,000 P1.00 Exceeds P10,000 P3.00 Provided, however , That freight tickets covering goods, merchandise, or effects carried as accompanied baggage or passengers on land and water carries primarily engaged in the transportation of passengers are hereby exempt." SECTION 36. Section 241 of this Code, as amended, is hereby further amended to read as follows: "Sec. 241. 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 stamp tax of two pesos and fifty centavos ." SECTION 37. Section 242 of this Code, as amended, is hereby further amended to read as follows: "Sec. 242. Stamp tax on powers of attorney. On each power of attorney to perform any act whatsoever, except acts connected with the collection of claims due from or accruing to the Government of the Republic of the Philippines, or the government of any province, city or municipality, there shall be collected a documentary stamp tax of two pesos . Provided, however, That on each power of attorney which authorizes another to administer, sell, lease, or otherwise dispose of the property of a principal, there shall be collected a documentary stamp tax of three pesos ." SECTION 38. Section 243 of this Code, as amended, is hereby further amended to read as follows: "Sec. 243. Stamp tax on leases and other hiring agreements. On each lease, agreement, memorandum, or contract for hire, use or rent of any lands or tenements, or portions thereof, there shall be collected a documentary stamp of three pesos for each year of the term of said contracts or agreement." SECTION 39. Section 244 of this Code, as amended, is hereby further amended to read as follows: "Sec. 244. Stamp tax on mortgages, pledges, and deeds of trust. On every mortgage or pledge of lands, estate, or property, real or personal, heritable or movable, whatsoever, where the same shall be made as a security for the payment of any definite and certain sum of money lent at the time or previously due and owing or forborne to be paid being payable, and on any conveyance of land, estate, or property whatsoever, in trust or to be sold, or otherwise converted into money which shall be and intended only as security, either by express stipulation or otherwise, there shall be collected a documentary stamp at the following rates: (a) When the amount secured does not exceed five thousand pesos, ten pesos . (b) On each five thousand pesos, or fractional part thereof in excess of five thousand pesos, an additional tax of five pesos . On any mortgage, pledge, or deed of trust, where the same shall be made as a security for the payment of a fluctuating account or future advances without fixed limit, the documentary stamp tax on such mortgage, pledge or deed of trust shall be computed on the amount actually loaned or given at the time of the execution of the mortgage, pledge or deed of trust. However, if subsequent advances are made on such mortgage, pledge or deed of trust, additional documentary stamp tax shall be paid which shall be computed on the basis of the amount advanced or loaned at the rates specified above. Provided, however , That if the full amount of the loan or credit, granted under the mortgage, pledge or deed of trust is specified therein, the documentary stamp tax prescribed in this section shall be paid and computed on the said amount of the loan of credit granted . cd i SECTION 40. Section 245 of this Code, as amended, is hereby further amended to read as follows: "Sec. 245. Stamp tax on deed of sale and conveyance of real property. On all conveyance, deeds, instruments, or writings, other than grants, patents, or original certificates of adjudication issued by the Government, whereby any lands, tenements or other realty sold shall be granted, assigned, transferred, or otherwise conveyed to the purchaser, or purchasers, or to any other person or persons designated by such purchaser or purchasers, there shall be collected a documentary stamp tax at the following rates: (a) When the consideration, or value received or contracted to be paid for such realty, after making proper allowance of any encumbrance, does not exceed one thousand pesos, ten pesos . (b) For each additional one thousand pesos, or fractional part thereof in excess of one thousand pesos of such consideration of value, ten pesos . When it appears that the amount of the documentary stamp tax hereunder has been reduced by an incorrect statement, of the consideration in any conveyance, deed, instrument, or writing subject to such tax, the Commissioner, provincial, or city treasurer or other revenue officer shall, from the assessment rolls or other reliable source of information, assess the property of its true market value and collect the proper tax thereon." SECTION 41. Section 246 of this Code, as amended, is hereby further amended to read as follows: "Sec. 246. Stamp tax on charter parties and similar instruments. On every charter party, contract, or agreement for the charter of any ship, vessel, or steamer, or any letter or memorandum or other writing between the captain, master, or owner, or other person acting as agent of any ship, vessel, or streamer, and any other person or persons for or relating to the charter of any such ship, vessel, or steamer, and on any renewal or transfer of such charter, contract, agreement, letter or memorandum, there shall be collected a documentary stamp tax at the following rates: (a) If the registered gross tonnage of the ship, vessel, or streamer does not exceed three hundred tons, and the duration of the charter or contract does not exceed six months, one hundred pesos , and for each month or fraction of a month in excess of six months, an additional tax of twenty pesos shall be paid. (b) If the registered gross tonnage exceeds three hundred tons and does not exceed six hundred tons, and the duration of the charter or contract does not exceed six months, two hundred pesos ; and for each month or fraction of a month in excess of six months, an additional tax of forty pesos shall be paid. (c) If the registered gross tonnage exceeds six hundred tons and the duration of the charter or contract does not exceed six months, three hundred pesos ; and for each month or fraction of a month in excess of six months, an additional tax of fifty four pesos ." Salient features of the amended provisions The increases in tax rates may be seen from the tabular presentation given on: OLD RATES NEW RATES Section 223 Stamp tax on bonds, debentures and certificates of indebtedness P0.65/P200 P1.00/P200 Section 224 Stamp tax on original issue of certificates of stocks P1.10/200 P1.70/200 Section 225 Stamp tax on sale agreements to sell, memoranda of sales, deliveries or transfer of bonds, due-bills, certificates of obligation or shares or certificates of stock. P0.25/P200 P0.50/P200 In the case of stock without par value 25% of the 25% of the documentary documentary stamp tax paid stamp tax paid upon the upon the original issue of original issue said stock of said stock Section 227 Stamp tax on certificates of profits or interest in property or accumulation. P0.10/P200 P0.20/P200 Section 228 Stamp tax on bank checks, drafts, certificates of deposit not bearing interest and other instruments. P0.15/document P0.20/document Section 229 Stamp tax on promissory notes bills of exchange, drafts, certificates of deposit bearing interest and others not payable on sight or demand. P0.10/P200 P0.20/P200 Section 230 Stamp tax upon acceptance of bills of exchange and others P0.15/P200 P0.30/P200 Section 231 Stamp tax on foreign bills of exchange and letters of credit P0.20/P200 P0.30/P200 Section 232 Stamp tax on life insurance policies. P0.35/P200 P0.50/P200 Section 233 Stamp tax on policies of insurance upon property P0.15/P4.00 P0.30/P4.00 Section 234 Stamp tax on fidelity bonds and other insurance policies P0.15/P4.00 P0.30/P4.00 Section 235 Stamp tax on policies of annuities (if known) P0.65/P200 P1.00/P200 If capital of the annuity is unknown On each P200 or On each P200 or fractional part, fractional part, 33-1/3 times the 33-1/3 times the annual income annual income Section 236 Stamp tax on indemnity bonds. P2.25/document P3.50/document Section 237 Stamp tax on certificates P1.50/certificate P3.00/certificate Section 238 Stamp tax on warehouse, motel, hotel receipts and others. A. Warehouse Receipt: not over P200 over P200 P0.90/receipt P1.50/receipt B. Hotel Receipt not over P200 P2.00/receipt P3.00/receipt over P200 additional tax of additional tax of P2.00 on every P3.00 on every P20.00 P20.00 Section 239 Stamp tax on Jai-Alai or horse race tickets not over P1.00 P0.10/ticket P0.20/ticket over P1.00 additional P0.10 additional tax of on every P1.00 P0.20/P1.00 Section 204 * Stamp tax on bills of lading or receipts - If the value of goods If the value of goods does not exceed P5.00 exceeds P100 but exceeds P 5.00 but does not exceed P200 P0.15 does not exceed exceeds P 200.00 but does not exceed P1,000 P0.35 P1,000-P0.50 exceeds P1,000 but does not exceed P5,000 P0.70 exceeds P1,000 exceeds P5,000.00 but does not exceed P10,000 P2.00 but does not exceed exceeds P10,000 P3.75 P10,000-P3.00 exceeds P10,000 Section 241 Stamp tax proxies P1.50/proxy for P2.50/proxy for voting voting Section 242 Stamp tax on power of attorney - power of attorney P1.00/document P2.00/document - power of attorney which authorizes another to administer, sell or lease, etc. P2.00/document P3.00/document Section 243* Stamp tax on lease and other hiring agreements a. executed not more than one year P2.00 b. executed from 1 to 3 years P4.50 P3.00/year c. executed from more than 3 years P9.00 Section 244* Stamp tax on mortgages, pledges, and deeds of trust If the amount for which mortgage or deed of trust is given Exceeds P1,000 but does not exceed P3,000 P3.50 does not exceed P5,000 -P10.00 Exceeds 3,000 P3.50 on each Exceeds P5,000-P5.00 P3,000 or on each P5,000 or fractional part in fractional part in excess of excess of P5,000 P3,000 Payment of fluctuating account or future advances computed on the computed on the without fixed limit amount actually amount actually loaned at the loaned at the time of execution time of execution If subsequent advances computed on the computed on the are made amount advanced at amount advanced at the rates specified the rates specified If full amount is specified computed on the full computed on the full amount of the loan or amount of the loan or credit granted credit granted Section 245* Stamp tax on deeds of sale and conveyances of real property - if the amount is: P200 - P1,000 P2.00 P1,000 and below -P10.00 over P1,000 P8.00 additional over P1,000 - P10.00 tax on each additional tax on P1,000 each P1,000 Section 246 Stamp tax on charter parties and similar instruments a. 1 - 300 tons, 1 - 6 months P60.00 P100.00 6 months and over P9.00/each month additional tax of P20./month b. 300 - 600 tons, 1-6 months P140.00 P200.00 6 months and over P18.00/each month additional tax of P40/month c. 600 or more tons, 1 - 6 months P200.00 P300.00 6 months and over P36.00 additional tax of P54/month The above tax rate increases take effect beginning October 15, 1984, the effective date of the amendatory Decree. cd i All internal revenue officials, employees, and others concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity possible. RUBEN B. ANCHETA Acting Commissioner