Documentary Stamp Tax, Frequently Asked Questions*
EMELINOTMAESTRO.com & www.Facebook.com/KATAXPAYER
1) Who are required to file Documentary Stamp Tax Declaration Return?
a) In case of constructive affixture of documentary stamps, by the persons making, signing, issuing, accepting or transferring documents, instruments, loan agreements and papers, acceptances, assignments, sales and conveyances of the obligation, right or property incident thereto wherever the document is made, signed, issued, accepted or transferred when the obligation or right arises from Philippine sources or the property is situated in the Philippines at the same time such act is done or transaction had;
b) By using the web-based Electronic Documentary Stamp Tax (eDST) System in the payment/remittance of its/his/her DST liabilities and the affixture of the prescribed documentary stamp on taxable documents; and
c) By Revenue Collection Agent, for remittance of sold loose documentary stamps.
Note: Wherever one party to the taxable document enjoys exemption from the tax imposed, the other party who is not exempt will be the one directly liable to file Documentary Stamp Tax Declaration and pay the applicable stamp tax.
2) Where is the Documentary Stamp Tax Declaration Return filed?
In the Authorized Agent Bank (AAB) within the territorial jurisdiction of the RDO which has jurisdiction over the residence or principal place of business of the taxpayer or where the property is located in case of sale of real property or where the Collection Agent is assigned. In places where there is no Authorized Agent Bank, the return will be filed with the Revenue Collection Officer or duly authorized City or Municipal Treasurer where the taxpayer's residence or principal place of business is located or where the property is located in case of sale of real property or where the Collection Agent is assigned.
3) What are the documents/papers not subject to Documentary Stamp Tax?
Policies of insurance or annuities made or granted by a fraternal or beneficiary society, order, association or cooperative company, operated on the lodge system or local cooperation plan and organized and conducted solely by the members thereof for the exclusive benefit of each member and not for profit
Certificates of oaths administered by any government official in his official capacity or acknowledgement by any government official in performance of his official duty
Written appearance in any court by any government official in his official capacity
Certificates of the administration of oaths to any person as to the authenticity of any paper required to be filed in court by any person or party thereto, whether the proceedings be civil or criminal
Papers and documents filed in court by or for the national, provincial, city or municipal governments
Affidavits of poor persons for the purpose of proving poverty
Statements and other compulsory information required of persons or corporations by the rules and regulations of the national, provincial, city or municipal government exclusively for statistical purposes and which are wholly for the use of the Bureau or office in which they are filed, and not at the instance or for the use or benefit of the person filing them
Certified copies and other certificates placed upon documents, instruments and papers for the national, provincial, city or municipal governments made at the instance and for the sole use of some other branch of the national, provincial, city or municipal governments
Certificates of the assessed value of lands, not exceeding P200 in value assessed, furnished by the provincial, city or municipal Treasurer to applicants for registration of title to land
Borrowing and lending of securities executed under the Securities Borrowing and Lending Program of a registered exchange, or in accordance with regulations prescribed by the appropriate regulatory authority: Provided, however, That any borrowing or lending of securities agreement as contemplated hereof shall be duly covered by a master securities borrowing and lending agreement acceptable to the appropriate regulatory authority, and which agreement is duly registered and approved by the Bureau of Internal Revenue (BIR)
Loan agreements or promissory notes, the aggregate of which does not exceed Two hundred fifty thousand pesos (P250,000), or any such amount as may be determined by the Secretary of Finance, executed by an individual for his purchase on installment for his personal use or that of his family and not for business or resale, barter or hire of a house, lot, motor vehicle, appliance or furniture: Provided, however, That the amount to be set by the Secretary of Finance shall be in accordance with a relevant price index but not to exceed ten percent (10%) of the current amount and shall remain in force at least for three (3) years
Sale, barter or exchange of shares of stock listed and traded through the local stock exchange (R.A 9648)
Assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or continuance of any agreement, contract, charter, or any evidence of obligation or indebtedness, if there is no change in the maturity date or remaining period of coverage from that of the original instrument.
Fixed income and other securities traded in the secondary market or through an exchange.
Derivatives: Provided, That for purposes of this exemption, repurchase agreements and reverse repurchase agreements shall be treated similarly as derivatives
Interbranch or interdepartmental advances within the same legal entity
All forebearances arising from sales or service contracts including credit card and trade receivables: Provided, That the exemption be limited to those executed by the seller or service provider itself.
Bank deposit accounts without a fixed term or maturity
All contracts, deeds, documents and transactions related to the conduct of business of the Bangko Sentral ng Pilipinas
Transfer of property pursuant to Section 40(C)(2) of the National Internal Revenue Code of 1997, as amended
Interbank call loans with maturity of not more than seven (7) days to cover deficiency in reserves against deposit liabilities, including those between or among banks and quasi-banks
4) What are the implications of failure to stamp taxable documents?
The untaxed document will not be recorded, nor will it or any copy thereof or any record of transfer of the same be admitted or used in evidence in court until the requisite stamp or stamps have been affixed thereto and cancelled
No notary public or other officer authorized to administer oaths will add his jurat or acknowledgment to any document subject to Documentary Stamp Tax unless the proper documentary stamps are affixed thereto and cancelled.
5) What is Electronic Documentary Stamp Tax (eDST) System? (sec. 5 (1), RR No. 7-2009)
The eDST is a web-based application created for taxpayers and the BIR that is capable of affixing a secured documentary stamp on the taxable documents as defined under the appropriate provisions under Title VII of the National Internal Revenue Code of 1997, as amended, thru the use of a computer unit, any laser printer with at least 1200 dpi resolution, and Internet Explorer 7.0 It is also capable of providing a 3-layer watermark on stamps for added security.
6) Is DST Law applicable on Electronic Documents? (sec. 10, RR No. 13-2004)
The DST rates as imposed under the Code, as amended by R.A. 9243 shall be applicable on all documents not otherwise expressly exempted by the said law, notwithstanding the fact that they are in electronic form. As provided for by R.A. 8792, otherwise known as the Electronic Commerce Act, electronic documents are the functional equivalent of a written document under existing laws, and the issuance thereof
is therefore tantamount to the issuance of a written document, and therefore subject to DST.
7) What are the inclusions of a debt instrument? (sec. 5, RR No. 13-2004)
“Debt Instrument” shall mean instruments representing borrowing and lending transaction including but not limited to:
debentures,
certificates of indebtedness,
due bills,
bonds,
loan agreements, including those signed abroad wherein the object of the contract is located or used in the Philippines,
instruments and securities issued by the government or any of its instrumentalities,
deposit substitute debt instruments,
certificates or other evidences of deposits that are drawing instrument significantly higher than the regular savings deposit taking into consideration the size of the deposit and the risks involved,
certificates or other evidences of deposits that are drawing interest and having a specific maturity date,
promissory notes, whether negotiable or non-negotiable, except bank notes issued for circulation.
8) Is any document, transaction or arrangement entered into under Financial Lease subject to Documentary Stamp Tax? (RMC No. 46-2014)
Financial lease is akin to a debt rather than a lease. A nature of an obligation than a lease of personal property. The mere act of extending credit is already a means of facilitating an obligation or advancing in behalf of the lessee certain property in lieu of cash in exchange for a definitive amortization to be paid to the lessor with profit margin included. Section 179 of the NIRC, as amended, covers all debt instruments. Therefore, being a nature of an obligation, any document, transaction or arrangement entered into under financial lease is subject to DST under such Section of the NIRC, as amended.
*Source, bir.gov.ph
PROFOUND RECOMMENDATION...
For tax-course descriptions, visit the "Event" tab
Tax Accounting Course for
1. Non VAT Individual Availing Optional Standard Deduction (101)
2. Non VAT Individual Availing Allowable Itemised Deduction (102)
3. VAT Individual Availing Optional Standard Deduction (103)
4. VAT Individual Availing Allowable Itemised Deduction (104)
5. Nov VAT Corporation Availing Optional Standard Deduction (201)
6. VAT Corporation Allowable Itemised Deduction (202)
7. VAT PEZA-entity Allowable Itemised Deduction (203)
Tax Consulting Course for
1. eLetter of Authority, Letter Notice and Subpoena Duces Tecum (501)
2. Tax Mapping, Benchmarking and Oplan Kandado (502)
3. Compromising with No Bribing Taxes, Surcharge, Interest and Penalty (503)
4. Common Deficiency Income Tax Assessment (504)
5. Common Deficiency Withholding Tax Assessment (505)
6. Common Deficiency Value Added Tax Assessment (506)
7. Easy Way Out from Tax Evasion Trap (507)
8. Estate Planning and Wealth Protection (508)
You're invited to grace the following important events of your lives, viz;
You're invited to grace the following important events of your lives, viz;
IMPORTANT TOPIC
eLetter of Authority, Letter Notice & Subpoena Duces Tecum
RELEVANT DATES
"Aug 14-15, 2014, Luxent Hotel, QC"
"Oct 2-3, 2014, Quest Hotel, Cebu City"
"Nov 13-14, 2014, Iloilo Business Center"
For special rates, please call Juliet
IMPORTANT TOPIC
Tax Mapping, Benchmarking & Oplan Kandado
RELEVANT DATES "Aug 18 & 19, 2014, RCBC Plaza, Makati"
For special rates, please call Juliet
IMPORTANT TOPIC
Tax Accounting Course for VAT-reg. Small & Medium Enterprisess
RELEVANT DATES
"Aug 21-22, 2014, Luxent Hotel, QC"
"Sep 25-26, 2014, Seda Hotel, Davao City"
For special rates, please call Juliet
IMPORTANT TOPIC
Estate Planning/Wealth Protection
RELEVANT DATES "Aug 25, 27 & 29, 2017, Luxent Hotel, QC"
P30,000 plus 12%VAT/pax
IMPORTANT TOPIC
Tax Accounting Course for VAT-reg. Small & Medium Enterprises
RELEVANT DATES "Sep 25-26, 2014, SEDA, Davao City"
For special rates, please call Juliet
www.Facebook.com/Kataxpayer
0989793922@MaestroTaxation.Org
No comments:
Post a Comment