The document discusses various aspects of documentary stamp tax in the Philippines, including: 1) Persons liable for documentary stamp tax include both parties to a taxable transaction. The tax accrues when the privilege to enter the transaction is exercised, regardless of future events like cancellation. 2) The tax applies to original issues of shares and debt instruments, sales of shares, certificates of profits/interest, checks, bills of exchange, and foreign bills payable domestically. 3) Rates vary based on document type but are generally calculated per P200 (or portion thereof) of consideration, par value, actual value, or face value. For debt under 1 year, the rate is proportional to term.

1. CHAPTER 5
Documentary Stamp Tax
Persons liable
A. PRELIMINARY TOPICS
1. Both parties to the transaction
– the Tax Code provides that the corresponding
documentary stamp taxes shall be levied,
collected and paid, for and in respect of the
transactions so had or accomplished, by the
person making, signing, issuing, accepting, or
transferring the document, instrument or paper
wherever the same is made, etc., when the
obligation or right arises from Philippine
sources or the property is situated in the
Philippines, and at the same time such act is
done or transaction had.
DOCUMENTARY STAMP
TAX
-- Mark Owen Magtibay
Definition: It is a tax on
documents, instruments and papers evidencing
the acceptance, assignment, sale or transfer of
an obligation, right, or property thereto.
Nature: It is an excise or privilege tax because
it is really imposed on the privilege to enter into
a transaction rather on document.
2. Where one party enjoys exemption from
the tax
– Whenever one party to the taxable document
enjoys exemption from the tax above imposed,
the other party thereto who is not exempt shall
be the one directly liable for the tax.
Purpose: To raise revenue and not to invalidate
contracts or inflict penalties and courts should
give it a liberal construction.
Accrual: Being a privilege tax, it is accrued
when the privilege is exercised, regardless of
circumstances that may take place in the future
like cancellation or rescission.
RETURNS, PAYMENT OF
THE TAXES, AND
SACTIONS
-- Patricia Ann Encarnacion
Basis of liability
1. The amount of documentary stamp tax
payable depends upon the nature of the
document or instrument and the value appearing
upon the face thereof.
Filing of return and payment of tax
1. In general
– The Presidential Decree No.1045
notwithstanding, any person liable to pay
documentary stamp tax upon document subject
to such tax shall file a tax return and pay the tax
in accordance with the rules and regulations to
be prescribed by the Secretary of Finance, upon
recommendation of the Commissioner.
2. The liability to tax and the amount thereof
are determined from the fact of the document
itself, i.e., by the form and face thereof, and
cannot be affected by proof of facts outside of
the same.
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2. document. The purpose of cancellation is to
obviate the possibility that the stamp cancelled
will be reused for similar documents for similar
purposes.
Documentary stamps may be affixed on
the proofsheet or abstract of transaction or
similar summary of transaction, and that a note
properly initialled by a responsible person on
the face of such document shall be made as
follows: “Documentary stamps to the value of
P_______ have been affixed to the proofsheet x
x x,” pursuant to Section 203 of Regulations No.
26 (as amended), otherwise known as
Documentary Stamp Tax Regulations. (BIR
Ruling No. 225, Nov. 5, 1991.)
2. Time for filing and payment of the tax
– Except as provided by rules regulations
promulgated by the Secretary of Finance, upon
recommendation of the Commissioner, the tax
return prescribed shall be filed within 10 days
after the close of the month when the taxable
document was made, signed, issued, accepted,
or transferred, and the tax thereon shall be paid
at the same time the aforesaid return is filed.
3. Where to file – except in cases where the
Commissioner otherwise permits, the aforesaid
tax return shall be filed with and the tax due
shall be paid through the authorized agent bank
within the territorial jurisdiction of the Revenue
District Office which has jurisdiction over the
residence or principal place of business of the
taxpayer.
Effect of failure to stamp taxable document
The following shall be the effects when
failed to stamp taxable document. Such failure
does not render the instrument, document, or
paper which is required by law to be stamped
and which has been signed, issued, accepted, or
transferred, invalid or void.
1. The instrument, document or paper shall not
be recorded;
2. Such instrument, document or paper or any
record or transfer of the same shall not be
admitted or used in evidence in any court shall
not be admitted or used in evidence in any court
until the requisite stamp or stamps shall have
been affixed thereon and cancelled; and
3. No notary public or other officer authorized
to administer oaths shall add his jurat or
acknowledgement to the document unless the
proper stamps are affixed thereto and cancelled.
(sec. 201.)
4. Exception – In lieu of the foregoing
provisions, the tax may be paid either through
purchase and actual affixture, or by imprinting
the stamps through a documentary stamp
metering machine, on the taxable document, in
the manner as may be prescribed by rules and
regulations to be promulgated by the Secretary
of Finance, upon recommendation of the
Commissioner.
(a) Payment at time of execution of document
– Section 173 (supra.) requires that the
corresponding documentary stamp taxes shall be
paid at the time “the act is done or transaction
had.”
(b) Affixture
and
cancellation
of
documentary stamps
– Documentary stamp taxes shall be paid
by the purchase and affixture of documentary
stamps to the document or instrument taxed or
to such other paper as may be indicated by law
or rules and regulations as the proper recipient
of the stamp, and by the subsequent cancellation
of the same.
The purchase of the stamp is a form of
payment made; and the affixture thereof on the
document or instrument taxed is to insure that
the corresponding tax has been paid for such
Offenses relating to documentary stamps
Any person who commits any of the acts
enumerated below shall, upon conviction
thereof, be punished by a fine of not less than
P20,000 but not more than P50,000 and suffer
imprisonment of not less than four (4) years but
not more than eight (8) years.
1. Making, importing, selling, using or
possessing without express authority from the
Commissioner, any die for printing or making
stamps, labels, tags or playing cards;
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3. (e) In lieu of the foregoing, “the tax may be
paid either through purchase and actual affixture,
or by imprinting the stamps through a
documentary stamp metering machine on the
taxable document.” Our Supreme Court has held
that under Section 175, the certificate only need
to be issued but not delivered, actually or
constructively, for the DST to attach. But if the
certificate issued is subject to a suspensive
condition, it shall be liable to tax only when
released from said condition for then and only
then shall it truly acquire any practical value to
its owner and be considered as originally issued.
2. Erasing the cancellation marks of any stamp
previously used or altering the written figures
or letters or cancellation marks on internal
revenue stamps;
3. Possessing false, counterfeit, restored or
altered stamps, labels or tags or causing the
commission of any such offense by another;
4. Selling or offering for sale any box package
containing articles subject to excise tax with
false, spurious or counterfeit stamps or labels
or selling from any such fraudulent box,
package or container as aforementioned; or
5. Giving away or accepting from another or
selling, buying or using containers on which
the stamps are not completely destroyed.
2. Basis and rate of tax
(a) On shares of stocks with par value – on
each P200.00, or fractional part thereof, of
the par value of such shares – P1.00,
regardless of the consideration paid by the
stockholders.
(b) On shares of stock without par value, the
amount of the tax is based on actual
consideration received for the issuance of
such stock. Any additional consideration
which may be received for the certificates in
the future is of no consequence.
(c) On stock dividends, the amount of the tax is
based on the actual value (or book value)
represented by each share.
Note: R.A. No. 9243 reduces the rate of tax on
the original issue of shares from P2.00 to P1.00
for every P200.0 or a fractional part thereof, of
par value. It repeals Section 174 (Stamp Tax on
Debentures and Certificates of Indebtedness),
adds Section 180 (Stamp Tax on All Bills of
Exchange or Drafts), amends Section 175, 176,
180, 183, 186, and 199, and then renumbers
formers Sections 175 to 180 as Sections 174 to
179, respectively.
RATES AND BASES OF
THE TAXES
-- Jenny Marasigan
 On original issue of shares
of stock
1. Documents taxable – Every original issue
whether an organization, reorganization, or for
any lawful purpose, of shares of stock by any
association, company, or corporation.
(a) No documentary stamp tax is due upon
certificates of stock issued to replace prior or
original certificates are issued to the same
person and the tax has been paid on the original
issue.
(b) R.A. No. 8424 amended Section 175 (now
174) by substituting “ shares” for “ certificates”
so that now the tax is imposed no longer on the
original issue of certificates of stocks but of
shares of stock.
(c) The DST accrues at the time the shares are
issued. Issuance means that point at which the
stockholder acquires and may exercise attributes
of ownership over the stock.
(d) It is actually the transaction or the privilege
to enter into a transaction evidenced by the
document or instrument on which the
documentary stamp tax is imposed but in the
absence of the document or instrument there is
nothing to which the documentary stamp can be
affixed.
3. Where certificate issued subject to a
condition – If the certificate issued is subject to
a suspensive condition, it shall be liable to tax
only when released from said condition for then
and only then shall it truly acquire any practical
value to its owner and be considered as
originally issued. (Ibid.)
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4. the documentary stamp tax paid upon the
original issue of said stock.
 On sales, agreements to
sell, etc. of shares or
certificates of stock
-- Ian Esguierra
 On bonds, debentures, certificates of stock
or indebtedness issued in foreign countries
1. Documents taxable – Any of the ff.
defined below issued in any foreign country:
(a) Bond is an obligation in writing binding the
obligor to pay a sum of money to the obligee.
(b) Debenture is a simple acknowledgement of
a debt.
(c) Certificate of stock is a written instrument
signed by the proper officer of an association,
company
or
corporation,
stating
or
acknowledging that the person named therein is
the owner of a designated no. of shares of its
stock.
(d) Certificate of indebtedness is an instrument
having the general character of investment
securities issued by a corporation as
distinguished from an instrument evidencing
debts arising in ordinary transactions between
individuals.
1. Documents taxable – All sales, or
agreements to sell, or memoranda of sales, or
deliveries, or transfer of shares of stock, in any
association, company, or corporation, or transfer
of such securities by assignment in blank, 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 f such stock, or to secure the
future payment of money, or for the future
transfer of any stock.
2. Accrual of tax – The tax accrues at the time
of making the sale or agreement to sell or
memorandum of sale, or delivery of or transfer
of the legal title of stock, or of the right to
subscribe for or to receive such stocks,
regardless of the time or manner of the delivery
of the certificate or memorandum of sale.
2. When taxable – They are taxable if issued,
sold, or transferred in the Philippines.
3. Transfer by operation of law – A transfer
of certificates of stock by operation of law as in
the case of intestate succession is not subject to
the tax.
3. Basis and rate of tax – There is no legal
basis to exempt bonds of all classes from the
payment of the tax notwithstanding the fact that
pursuant to Sec. 32, bonds with a maturity
period of more than 5 years are exempt from
income tax and final withholding tax.
4. Nature of transfer – If the legal and
beneficial title remains with the owner of the
certificate of stock, the transfer is exempt from
tax.
 On certificates of profits
or interest in property or
accumulations
-- Kevin Paul Arban
5. Basis and rate of tax
(a) On each P200.00 or fractional part thereof,
of the par value of such stock – P0.75
(b) Only one tax shall be collected on each sale
or transfer of stock from one person to another
regardless of whether or not a certificate of
stock is issued, indorsed or delivered in
pursuance of such sale, or transfer.
(c) In the case of stock without par value, the
amount of the tax shall be equivalent to 25% of
1. Documents taxable
(a) All certificates of profits or any certificate or
memorandum showing interest in the property
or accumulations of any association, company
or corporation;
(b) All transfers of such certificates or
memoranda;
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5. (c) Sales of participation in a partnership are
subject to tax because they are considered
accumulations of associations, companies, or
corporations;
(d) Coupons detached to certificates of stock are
certificates of profits and at maturity, or when
detached should each beat the stamp.
(e) Business property investment bond.
(k) Promissory notes (negotiable or not)
2. Basis and rate of tax
(a) On each P200.00, or fractional part thereof,
of the issue price of any such debt instruments
draft, certificate of deposit, or note – P1.00;
(b) For such debt instruments with terms of less
than 1year, the documentary stamp tax to be
collected shall be of a proportional amount in
accordance with the ratio of its terms in number
of days to 365 days;
(c) Only one documentary stamp tax shall be
imposed on either loan agreement, or
promissory notes issued to secure such loan.
2. Basis and rate of tax – On each P200.00 or
fractional part thereof, of the face value of such
certificate or memorandum – P0.50.
 On bank checks, drafts, etc.
1. Documents taxable – The tax applies only
to inland bank checks, drafts, or certificates of
deposit not drawing interest, or orders for the
payment of any sum of money drawn upon or
issued by any bank, trust company, or any
person/s companies or corporations at sight or
on demand.
The term “issue price” refers to the face
value of the debt instruments.
3. Computation of the tax - Virgil Calalang
2. Basis and rate of tax – On each such
instrument- P1.50.
– If the debt instrument has a
term of less than 1year, the
DST shall be computed taking
into consideration the number
of days that the instrument is outstanding as a
fraction of 365 days. If the debt instrument has a
term of 1year or longer, the DST shall be
computed based on the issue price of the debt
instrument.
 On all debts instruments
1. Documents Taxable – The tax applies to
every original issue of debt instruments. For
purpose of the tax, the term “debts instruments”
shall mean instruments representing borrowing
and lending transactions including but not
limited to:
 On all bills of exchanges or drafts
1. Documents Taxable – The tax applies to all
bills of exchange between points within the
Philippines or drafts
(a) Debentures;
(b) Certificates of indebtedness;
(c) Due bills
(d) Bonds
(e) Loan agreements;
(f) Instruments and securities;
(g) Deposit substitute debts instruments;
(h) Certificate or other evidences of deposit
that are
either
drawing interest
significantly higher than the regular
deposit;
(i) Certificate or other evidences of deposits
drawing interest and having a specific
maturity date;
(j) Orders of payment of any sum of money
2. Basis and rate of tax – On each P200.00 or
fractional part thereof, of the face value of any
such bill of exchange or draft – P0.30.
Section 180 is intended to complement
the DST imposed on “all foreign bills exchange”
which are “drawn in but payable out of the
Philippines” under Sec. 182.
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6.  Upon acceptance or payment of bill of
exchange and others
1. Documents Taxable – Any bill of exchange
or order for the payment of money purporting to
be drawn in a foreign country but payable in the
Philippines whether at sight or on demand or
after a specified time. Note that Section 178
applies only to inland checks, etc.
the Philippine equivalent of such face value, if
expressed in foreign currency – P0.30.
 On Life Insurance Policies
1. Documents taxable – 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.
NOTE: The Tax Code speaks of “policies of
insurance”.
2. Basis and rate of tax – On each P200.00 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 – P0.30
Interest, commission, stamps, etc. are
not included in the taxable value.
2. Accrual of tax – In general, the tax accrues
upon the perfection of the contract.
3. Where policy deemed issues – Insurance
policies are issued in the place where delivered
to the person insured.
3. Fluctuation of Values – In such case, the
value of foreign money exchange included at
the time of the acceptance of the bill will be
accepted as inclusive. No refund of additional
taxes will be made.
4. Basis and rate of tax – On each P200.00,
or fractional part thereof, of the amount of
premium collected – P0.50. The former tax base
is “amount insured by any such policy”. The tax
is collectible not only on the original policy but
also upon renewals.
 On Foreign Bills of
Exchange and Letters of
Credit
--Ma. Diana Espinosa
 On Policies of Insurance upon Property
1. Documents taxable – 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 invalid waters,
or by fire or lightning.
1.
Documents taxable
– All foreign bills of
exchange and letters of credit drawn in but
payable out of the Philippines in a set of three or
more according to the custom of merchants and
bankers, and regardless of the fact that they
drawn in duplicate.
(a) A foreign bill of exchange is one where the
drawer and the drawee are residents of countries
foreign to each other.
(b) A letter of credit is that issued by one
merchant to another for the purpose of attending
to a commercial transaction.
Section 182 applies to foreign
transactions while section 192 (supra) applies to
domestic transactions.
2. Exempt policies – No tax is due on
reinsurance contracts.
3. Persons liable – The insurer, the agent or
sub-agent, or broker effecting, accepting,
placing or soliciting the insurance and also the
insured are liable for the tax.
4. Basis of rate of tax – On each P 4.00, or
fractional part thereof, of the amount of the
premium charged – P0.50.
2. Basis and rate of tax – On each P200.00,
or fractional part thereof, of the face value on
any such bill of exchange or letter of credit or
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7.  On Fidelity Bonds and other Insurance
Policies
1. Documents taxable –
(a) All policies of insurance or bonds or
obligations of the nature of indemnity for loss,
damage, or liability made or renewed by any
person company, etc.
(b) All bonds undertakings or recognizance,
conditioned for the performance of the duties of
any office or position, for the doing or not doing
of anything therein specified
(c) Obligations guaranteeing the validity or
legality of any bond or other obligations issued
by any public body, and guaranteeing the title of
any real state, merchantile credits, which may
be made by any such person, company or
corporation
.
2. Basis and rate of tax – On each P 4.00 or
fractional part thereof, of the premium charged
– P0.50. Section 185 governs health and
accident policies issued by non-life insurance.
With regard to other than such policies, the
same are subject to DST under section 184.
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
(b) All other bonds of any description, except
such as may be required in legal proceedings or
are otherwise provided therein.
2. Basis and rate of tax – On each P4.00 or
fractional part thereof of the premium charged –
P0.30
Section 185 governs health and accident
policies issued by non-life insurance company.
With regard to other than such policies, the
same are subject to DST under section 184.
 On certificates
1. Documents taxable – All certificates issued
by a public official or person acting in a public
capacity as well as those issued by a private
individual provided they are described under
Section 188 of tax code.
A Certificate is a statement in writing
issued by a person having a public and official
status concerning some matter within his
knowledge or authority. A writing by which
testimony is given as the fact has or has not
taken place
 On Policies of Annuities and Pre-need
Plans
1. Documents taxable – All policies of
annuities, by whatever names the same may be
called, whereby an annuity may be made,
transferred, or redeemed and all pre-need plans.
On pre-need plans, on each P200.00 or
fractional part thereof, of the premium or
contribution collected – P0.20. On policies of
annuities, the old tax base was “capital of the
annuity” or annual income” and on pre-need
plans the previous tax was “premium or
contribution collected.”
The law mentions the ff.
(a) Certificate of damage or other wise
(b) Certificate issued by any customs officer,
marine surveyor or other person
(c) Issued by notary public
(d) Certificate of any description required by the
law
(e) Certificate issued for the purpose of giving
information or establishing proof of facts.
Certificate issued for life insurance policies
are subject to DST under section 188.
 On Indemnity Bonds
1. Documents taxable:
(a) All bonds for indemnifying any person,
2. Basis and rate of tax – On each certificate
– P15.00 (sec 188)
2. Basis and rate of tax – On policies of
annuities, on each P200.00 or fractional part
thereof, of the premium or installment payment
or contract price collected – P0.50.
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8. (a)Exceeds P100.00 but does not exceed
P1,000.00 – P1.00
(b) Exceeds P1,000 – P10.00
 On Warehouse Receipts
1. Documents Taxable – All warehouse
receipts for property held in the storage in a
public or private house for any person other
than the proprietor of such warehouse.
 On proxies
1. Documents taxable – Every proxy for voting
at any election for officers of any company or
association, or for any other purpose.
Proxy is the instrument which evidences the
formal authority given to a person to vote or act
for another.
2. Exemptions – warehouse receipts issued to
any one person in any one calendar month
covering property the value of which does not
exceed 200.
3. Basis and rate of tax – on each warehouse
receipt 15.00
2. Exemptions:
(a) Proxies for the purpose of voting stock or
for the transaction of the other business of an
incorporated associations or company are not
subject to tax.
(b) Proxies issued affecting the affairs of
associations or corporations organized for
religious, charitable or literary purposes are also
exempt.
 On Jai-alai or horse race tickets, lotto or
other number games
The tax imposed is 0.10. However, if the
cost of ticket exceeds P1.00, an additional tax
of P0.10 on every P1.00 or fractional part
thereof shall be collected. (Sec.190)
 On bills of lading or receipts
1. Documents taxable – Each set of bills of
lading or receipts for any goods, merchandise or
effects shipped from one port or place in the
Philippines or to any foreign port.
A bill of lading is a contract by which
the carrier agrees to deliver the goods entrusted
to him for to the transportation to the person
named therein. Freight tickets issued by land
transportation companies are bills of lading.
3. Basis and rate of tax – on each proxy –
P15.00 the tax attaches on the instrument itself,
i.e., only one (1) tax is collectible on each
document appointing a proxy and not measured
by the number of grantors.
 On powers of attorney
1. Documents Taxable – Every power of
attorney to perform any act, except acts
connected with the collection of claims due
from or accruing to the government of republic
of the Philippines or the government of any
province, city, or municipality.
A power of attorney is an instrument
authorizing a person to act as the agent of the
person granting it.
2. Exemptions – 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 declared exempt.
2. Basis and rate of tax – on each power of
attorney – P5.00
3. Basis and rate of tax – The tax on each set is
graduated depending upon the value of goods
transported as follows:
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9. The tax is imposed on the instrument itself
and is not measured by the number persons
joining thereon.
(b) On each P5000, or fractional part thereof in
excess of P5000 additional tax of P10.00
(c) Where the mortgage pledge or deed of trust
is given as security for the payment of a
fluctuating account or future advances without
fix limit the tax is computed on the amount
actually loaned or given at the time of its
execution.
(d) Where subsequent advances are made on
such mortgage pledge or deed of trust the
additional tax is computed on the amount
advance or loan at the rates above specified
(e) Where the full amount of the loan or credit
granted is specified, the tax is computed on such
amount.
 On leases and other hiring agreements
1. Documents taxable – Every lease,
agreement, memorandum or contract for hire,
use or rent of any lands, or portions thereof.
2. Nature of tax – tax under this action falls
under the category of a direct tax. It is levied,
collected and paid by the parties to the
transaction in accordance in the section 186. It
follows the foreign legation, on condition of
reciprocity, if a party to a contract of lease of
real property, whether as lessor or lessee, may
be exempted from
the documentary tax
imposed in section 194.
 On
deeds
of
sale
conveyance of real property
--Jhed Nicole Sarona
3. Basis and tax rate of tax – On each lease,
etc.
(a) For the first P2,000, or fractional part there
of – P3.00;
(b) For every P1, 000, or fractional thereof in
excess of the first P2, 000 for each year of the
term of said contract or agreement, an additional
tax of – P1.00.
1. Documents taxable – all
conveyances,
deeds,
instruments or writings other than grants patents
or original certificates of adjunction issued by
the government whereby any land tenement or
other realty sold shall be granted or conveyed to
purchasers.
 On mortgages, pledges, and deeds of trust
1. Documents taxable –
(a) Every mortgage or pledge of land, estate or
property, 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.
(b) Any conveyance of land, estate or property,
in trust or to be sold, or otherwise converted into
money, which shall be and intended only as
security either by express stipulation.
2. Basis and rate of tax – the rates are base
on the consideration contracted to be paid for
such realty or on its fair market value
determined in accordance with section 6 of the
tax code
The tax base for computing the capital gains
tax and documentary stamp tax on sale at public
auction of the realty of a delinquent tax payer
for unpaid real estate taxes is, as in the case of
mortgage foreclosure sale under Act. No. 3135,
as amended, likewise on the highest bid price.
2. Basis and rate of tax
(a) If the amount secured does not exceed
P5000 – P20.00
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10. (a)When the consideration or value receive
contracted to be paid for such realty after
making proper allowance of any encumbrance
does not exceed P1000 – P15.00
(b) For each additional P1000, or fractional
part thereof in excess of P1000 of such
consideration or value – P15.00
The sale of land to the government is
subject to documentary stamp tax
4. Incorrect statement of consideration –
where as a result thereof the amount of tax
payable has been reduce the commissioner of
internal revenue regional director, revenue
district officer and other revenue officer shall
from the assessment roles asses the property at
its true market value and collect the proper tax
thereon.
3. Conveyances not covered – the following
and similar conveyances are not subject to tax.
(a) Deeds of donation are not subject to
documentary stamp tax were as a matter of fact
there is no consideration
(b) The same is true of deeds or of partition
unless a consideration passes between the
parties by reason of one or more of them taking
under the division a share of real estate of
greater value than his undivided interest in
which event the stamp tax attaches to deeds
conveying such greater shares calculated upon
the value of such consideration.
(c)A stock in a corporation is the valuable
consideration for transfer of real properties.
(d) A
deed
of
assignment
without
considerations made by a corporation engage
among others in the sale and development of
condominium
projects
in
favour
of
condominium corporation for the management
of the project for the common benefit of the
individual unit orders.
(e)Similarly a deed of reconveyance executed
without consideration subsequent to a deed of
sale between the same parties which failed to
effect the transfer of ownership for lack of cause
or consideration is not subject to documentary
stamps in section 196
(f) Agreements to sell real property on
instalment basis are not subject to documentary
stamp tax.
(g) Under section 196 the transaction which is
tax is the same or conveyance of real property to
the purchaser.
 On charter parties and similar
instruments
1. Documents taxable
(a) Every character party ,contract or agreement
for the character of any ship, vessel or streamer
or any letter of memorandum or other writing
between the captain , master or owner or the
other person or person or persons for or relating
to the charter of any such ship, vessel or
streamer
(b) Any renewal or transfer of such charter,
contract, agreement, letter or memorandum.
Charter Party is a contract by virtue of
which the owner or the agent of a vessel binds
himself to transport merchandise or person or
both for a fixed price.
2. Basis and Rate of tax
(a) If the registered gross tonnage of the ship,
vessel or streamer does not exceed 1000 tons
and the duration of the charter or contract does
not exceed 6 months. – P500.00
And each of the month or fraction of a
month in excess of 6 months – P50.00
(b) If the registered tonnage exceeds 1000 tons
and does not exceed 10 000 tons and the
duration of the character or contract does not
exceed 6 months – P1000
10

11. And for each month or fraction of a month
in excess of six (6) months an additional tax of
P100.00
(3) Certificates of acknowledgement by any
government official in the performance of his
official duties.
(4) Written appearance in any court by any
government official in his official capacity.
(5) Certificates of the administration of oaths to
any personas to the authenticity of any paper
required.
(6) Paper and documents filed in court by or for
the national, provincial city municipal
governments.
(7) Affidavits of poor person for the purpose of
proving property.
(8)Statements and other compulsory information
required of person or corporations the rules and
regulations of national provincial city municipal
governments exclusively for statistical purposes
and wholly use for bureau or office of which
there are filled.
(9) Certified copies and other certificates placed
upon document, instrument and papers for the
national, provincial city and municipal
governments, made at the instance and for the
sole use of the some other branch of the national,
provincial city, municipal governments.
(10) Certificate of the assessed value of lands
not exceeding 200.00 in value assessed,
furnished by provincial, city or municipal
treasurer to applicants for registration of title to
land.
(11) Borrowing and lending of securities
executed under the securities borrowing and
lending program of registered exchange in
accordance with regulations prescribe the
appropriate regulatory authority.
(12) Loan agreements and promissory notes the
aggregate of which does not exceed 250,000 or
any such amount as maybe determined by the
secretary of finance.
(13) Sale barter or exchange of shares of stock
listed and traded trough the local stock
(c) If the registered gross tonnage exceeds 10
000 tons and the duration of the contract or
charter does not exceed 6 mos. – P1500.00
And for each month or fraction of a month in
excess of six (6) months an additional tax of
P150.00
 On Assignment and renewal of certain
instruments
1. Documents Taxable – Each and every
assignment or transfer of mortgage, lease or
policy of insurance, or renewal or continuance
of any agreement, contract, charter or any
evidence of obligation of indebtedness by
altering or otherwise.
2. Basis and rate of tax – Same as that
imposed on the original instruments.
 Documents and
not subject to tax
--Jaycelle de Villa
Paper
The following are exempt from the documentary
stamp tax:
(1) Policies of the insurance or annuities made
or granted by a fraternal or beneficiary society,
order, association or cooperative company,
operated on lodge system, local cooperation
plan and etc. and conducted solely by the
members thereof for the exclusive benefit of its
members and not for profit.
(2) Certificates of oaths administered to any
government official in his official capacity
11

12. exchange for a period of five years from the
effectivity of RA no. 9243
(14) Fix income in other securities traded in the
secondary market through an exchange.
assignment is subject to tax pursuant section
188 ( BIR ruling no. 113-99 july 29 1999)
(15) Derivatives provided for purposes of this
exemption repurchase agreements and reverse
purchase agreements shall be treated similarly.
(16) Interbranch or interdepartamental advances
within same legal entity.
(17) All forbearances arising from sales or
service contracts including credit card and trade
receivables. The exemption is limited to those
executed by the seller or service provider it self.
(18) Bank deposit account without a fixed term
or maturity
(19) Contracts, deals, documents and
transactions related to the conduct of business of
the Banko Sentral Ng Pilipinas
(20) Transfer of property Pursuant to section 40
or the tax code.
(21) interbank call loans with maturity of not
more than seven days to cover deficiency in
reserves against deposit liabilities
(22) Deeds to property donated to the
government.
(23) Certificate of ownership and transfer of
chattel
(24) Ordinary bills of sale of personal property
and sale of real property the consideration of
which does not exceed 200
(25) Certificate of acknowledgement on the
following taxable instrument when such
certificates are necessary of instruments
(a) Power of attorney
(b) Contract of lease of land or tenement.
(c) Deeds or mortgage pledge or trust
(d) Contracts of sale of real property
(26) assignment of tax credit certificates as they
are not among of those expressly subjected to
the tax under title VII of the tax code, but the
notarial acknowledgement to deed of
12