Download BUSINESS TAXATION AND TRANSFERS and more Summaries Copyright Law in PDF only on Docsity! HANDOUTS ON DOCUMENTARY STAMP TAX (DST) Nature of Documentary Stamp Tax - A national tax whose purpose is to raise revenue - Deductible for income tax purposes - Defined as a tax upon documents, instruments, loan agreements, papers evidencing acceptances, assignments, sales, and transfers of obligations, rights, or properties, and in respect of the transaction so had or accomplished. It is levied and collected whenever 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. - However, the DST is actually an excise tax because it is imposed on the transaction rather than on the document. The transactions entered into by the taxpayer need not be embodied in a document or debt instrument for them to be subjected to DST. Documentary Stamp Tax (DST) Documents Transactions Tax Rate Original Issue of Shares of Stock P 2.00/ P200 Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of Shares or Certificates of Stock with par value P 1.50/ P200 par value In case Stock without par value 50% of DST paid on original issue Bonds, Debentures, Certificates of Stock or Indebtedness issued in Foreign Countries Same Tax rate on similar instrument Certificates of Profits or Interest in Property or Accumulations P1.00/ P200 Bank Checks, Drafts, Certificates not Bearing Interest and Other Instruments P3.00/ piece of check, draft, certificate etc. Original Issue of all debt instruments P1.50 / P200 of issue price or a fraction of 365 days for instruments with term of less than one year Acceptance of Bills of Exchange or Order drawn in a foreign Country but payable in the Philippines P 0.60/ P200 Foreign Bills of Exchange and Letters of Credit P 0.60/ P200 Life Insurance Policies amount: Does not Exceed P 100,000 Exceeds P 100,000 but does not exceed P300,000 Exceeds P 300,000 but does not exceed P500,000 Exceeds P 500,000 but does not exceed P750,000 Exceeds P 750,000 but does not exceed P1,000,000 Exceeds P1,000,000 Exempt P20.00 P50.00 P100.00 P150.00 P200.00 Policies of Insurance upon Property P 0.50/ P4.00 Fidelity Bonds and Other Insurance Policies P 0.50/ P4.00 Policies of Annuities P1.00/ P 200 of the premium or installment payment on Contract Price collected Pre-need Plans P 0.40/ P 200 of the premium or contribution collected Indemnity Bonds P 0.30/ P4.00 Certificates (Sec. 188 of Tax Code) P30.00/ certificate Warehouse receipts P 30.00 with value above P200
