Documentary stamp tax
- On deeds of sale and conveyance of real property – All conveyance, deeds, instruments, or writing, other than grants, patents or original certificates of adjudication issued by the Government, whereby any land, tenement 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, shall be collected a documentary stamp tax, at the rates herein below prescribed, based on the consideration contracted to be paid for such realty or on its fair market value as determined by the Commissioner or fair market value as shown in the schedule of values of the Provincial and City Assessors, whichever is higher. Provided that when one of the contracting parties is the Government, the tax herein imposed shall be based on the actual consideration.
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 (P1,000), fifteen pesos (P15.00); and
B. For each additional one thousand pesos (P1,000), or fractional part thereof in excess of one thousand pesos (P1,000) of such consideration or value, fifteen pesos (P15.00).
- On sales, agreement to sell, memoranda of sales, deliveries or transfer of shares or certificates of stock (not through the local stock exchange) – There shall be collected a documentary stamp tax at the rate of P0.75 on each P200 or fractional part thereof, of the par value of the share of stock. (Sale, barter, or exchange of shares of stock listed and traded through the local stock exchange is now permanently exempt from the DST, effective March 20, 2009, under R.A. No. 9648).
- Payment of documentary stamp tax
A. In general – Any person liable to pay documentary stamp tax upon any document shall file a tax return and pay the tax in accordance with the rules and regulations prescribed by the Secretary of Finance, upon the recommendation of the Commissioner.
B. Time for filing and payment of the tax – The tax return shall be filed within five (5) days after the close of the month when the taxable document was made (notarized), signed, issued, accepted, or transferred, and the tax thereon shall be paid at the same time the aforesaid return is filed.
C. 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. In places where there is no authorized agent bank, the return shall be filed with the Revenue District Officer, collection agent, or duly authorized Treasurer of the city or municipality in which the taxpayer has his legal residence or principal place of business.
D. Exception – 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, in the manner as may be prescribed by rules and regulations promulgated by the Secretary of Finance, upon the recommendation of the Commissioner.
JONATHAN RUIZ CPA, MIB