DOCUMENTARY STAMP TAXES

1. Sections 173 to 201 of NIRC.

2. RR 13-2004 implementing Documentary Stamp Tax
3. CIR v Lincoln Phil Life Ins 329 SCRA 423. Basis of the tax is the amount fixed on the face of the
policy, or whatever increase will take effect in the future.
4. International Exchange Bank v CIR GR 171266 Apr 4, 2007 - Is a Savings Account-Fixed Savings
Deposit (FSD) evidenced by a passbook issued by International Exchange Bank (petitioner) subject to
documentary stamp tax (DST) for the years 1996 and 1997?
5. Antam Pawnshop v CIR GR 167962 Sep 19, 2008. Are pawnshop tickets subject to DST? Yes.
Considering that the pawn ticket issued by the pawnshop should contain the foregoing, the pawn ticket
is evidently a proof of a contract of pledge. We agree with petitioner that the law does not consider the
pawn ticket as a security nor a printed evidence of indebtedness. However, what is subject to DST is
not the ticket itself but the privilege of entering into a contract of pledge. A documentary stamp tax is in
the nature of an excise tax. It is not imposed upon the business transacted but is an excise upon the
privilege, opportunity or facility offered at exchanges for the transaction of the business. It is an excise
upon the facilities used in the transaction of the business separate and apart from the business itself. In
general, documentary stamp taxes are levied on the exercise by persons of certain privileges conferred
by law for the creation, revision, or termination of specific legal relationships through the execution of
specific instruments. Examples of such privileges, the exercise of which, as effected through the
issuance of particular documents, are subject to the payment of documentary stamp taxes are leases of
lands, mortgages, pledges, and trusts and conveyances of real property.
6. Filipinas Textiles Mills v CA 415 SCRA 635 (2003). Issue: inadmissibility of document due to non-
payment thereof.

SUGGESTED QUESTIONS

1. What is the nature of docs stamps tax? When does it attach?

2. Who are liable for the payment of this tax?
3. What is the situs of docs stamps tax? When the right or obligation arises or the property is located in the
Philippines.
4. What is the effect if one of the parties to the document is exempt from tax?
5. How are original issues of shares stocks subjected to docs stamps? Sec 174; What is meant by original
issues?
6. What are the two kinds of stocks according to the value at which they are issued?
7. What is the basis of the tax for stocks with par value? Without par value?
8. How are stocks dividends subjected to docs stamps? If with par value? Without par value?
9. How are sale of shares stocks subjected to docs stamps? Sec 175
10. How do the shares of stocks under 174 differ from the shares of stock under 175?
11. Is transfer of shares of stocks from a nominee to another nominee subject to DST?
12. Is agreement to sell shares of stock taxable?
13. Are shares of stocks issued in foreign countries subject to docs stamps? If so, when and who is liable for
the payment of this tax?
14. Are checks issued by banks to current account depositors subject to docs stamps?
15. Are loan agreements signed abroad taxable in the Philippines/
16. Sale of debt instrument in the secondary market not subject DST/
17. Are savings deposits evidenced by a passbook subj to DST
18. What is meant by significantly higher purposes of determining whether certain deposits are subj to DST
or not?
19. What debt instruments are subject to DST? 179
20. How are insurance policies issued subjected to docs stamps? What is the basis?
21. What is the effect if the amount of the insurance is increased after Mar 20, 2004?
22. What are exempt from documentary stamps tax?
a. Lodge system?
b. Certificates?
c. Securities Borrowing & Lending Program of exchanges?
d. PN for 250k or less, house and Lot, etc.
e. Sale of stocks through the exchange for 5 years from effectivity of the law?
f. Assignment or transfer of insurance etc without change of maturity date?
g. Fixed income and other securities traded in the exchange/
h. Derivatives issued by entities authorized by BSP
i. Interbranch or interdepartment within same legal entity
j. Credit card or trade receivables?
k. Bank deposits without fixed terms
l. BSP
m. Sec 40(c)92) only deed of transfer is exempt; original issue of shares of stocks are subject to
DST
n. Interbank call loans not more than 7 days
23. When is the tax payable?
24. What is the effect if DST is not paid on the admissibility of the document as evidence?