Documentary Stamp Tax

Question 1

is a tax imposed on the exercise of certain rights embodied on certain documents.

Answer 1

Documentary Stamp Tax

Question 2

Documentary Stamp Tax can be imposed on a

Answer 2

fixed rate or an ad valorem tax based on par or face value.

Question 3

Person Liable to Pay DST

Answer 3

• Either of the contracting party shall be liable DST.
• Normally, it will be the party benefitting from the transaction that pays DST, but the contracting parties may agree on who shall pay the DST.
• If one party is exempt from paying DST, the other party who is not exempt shall be liable to pay DST.

Question 4

Mode of Paying DST

Answer 4

• Purchase of documentary stamp and actual affixture on the document.
• Imprinting a secure stamp on the document through the eDST system.
• Constructive afficture through filing of a documentary stamp tax return
  Tax return, in general: BIR Form 2000
  Tax return for one-time transaction: BIR Form 2000-OT

Question 5

The DST return shall be filed as follows:

Answer 5

• Loose stamps or actual affixture: Revenue collection officer that sold the stamp
• Machine imprinted stamps: Imprinting machine user
• Constructive affixture: Person that paid the DST

Question 6

Dealine of filing DST returns:

Answer 6

within 10 days after the close of the month when the taxable document was signed, issued, accepted or transfers

Question 7

Failure to pay DST shall

Answer 7

not affect the validity of the document.

Question 8

When there is a failure to pay DST the document shall not be recorded in the ____________ until the DST is affixed thereto and cancelled.

Answer 8

Registry of Deeds and shall not admissible as evidence in court

Question 9

When there is a failute to pay DST no ____________ until the DST has been affixed thereto and cancelled

Answer 9

notary public or other officers authorized to administer oath shall affixed his jurat or acknowledgement on the document

Question 10

Basic Principles of DST Imposition

Answer 10

• DST is imposed on a one-transaction, one-tax basis.
• DST applies whenever right or obligation arises in the Philippines regardless of the place where the document is executed.
• Invalidity of the contract does not affect DST imposition
• Only transactions or documents listed by the law is taxable