Exemption from Documentary Stamp Tax (DST) for Relief for Loans Pursuant to Revenue Regulations No. 8-2020 Dated April 1, 2020
Revenue Memorandum Circular No. 035-20, issued on April 2, 2020, exempts certain financial institutions from the Documentary Stamp Tax (DST) on loan relief measures as part of the Bayanihan to Heal as One Act. Specifically, banks, financing companies, and other lenders are not required to impose DST on credit extensions, restructuring, and micro-lending during the designated grace period. This regulation aims to alleviate the financial burden on borrowers amidst the ongoing crisis. Internal revenue officers are tasked with disseminating this information widely and ensuring compliance.
April 2, 2020
REVENUE MEMORANDUM CIRCULAR NO. 035-20
| SUBJECT | : | Exemption from Documentary Stamp Tax (DST) for Relief for Loans Pursuant to Revenue Regulations No. 8-2020 Dated April 1, 2020 |
| TO | : | All Internal Revenue Officers, Taxpayers and Others Concerned |
Pursuant to the provisions of Section 244 of the National Internal Revenue Code (NIRC), Revenue Regulations No. 8-2020 dated April 1, 2020 was issued implementing Section 4 (aa) and (n) of R.A. No. 11469, otherwise known as "Bayanihan to Heal as One Act."
All banks, quasi-banks, financing companies, lending companies, and other financial institutions, public and private, including the Government Service Insurance System, Social Security System and Pag-Ibig Fund, in extending the grace period for the payment of all loans shall not impose additional documentary stamp tax (DST) imposed under Sections 179, 195 and 198 of the NIRC, for credit extensions and credit restructuring, micro-lending including those obtained from pawnshops and extensions thereof during the covered period.
All internal revenue officers and others concerned are enjoined to give this Circular as wide a publicity as possible, and that a copy thereof be filed with the Office of the National Administrative Register (ONAR) of the UP Law Center.
(SGD.) CAESAR R. DULAYCommissioner of Internal Revenue