RR No. 24-2020: Implements Section 4 (uu) of RA No. 11494 (Bayanihan to Recover as One Act) on the exemption from Documentary Stamp Tax of loans extended or credits restructured

Key points

1. Loan extensions covered. The Regulations cover extensions of payment and/or maturity periods of all loans, including salary, personal, housing, commercial and motor vehicle loans. They also cover amortizations, financial lease payments, premium payments and credit card payments falling due, or any part of them, on or before December 31, 2020. This includes maturity extensions from grace periods, whether or not the maturity originally fell due on or before December 31, 2020.
2. Restructuring and micro-lending. Credit restructuring, micro-lending (including from pawnshops) and extensions of them made on or before December 31, 2020 are also covered.
3. No additional DST. No additional DST, including under Sections 179, 195 and 198 of the NIRC, applies to term extensions and credit restructuring granted by covered institutions for loans falling due, or any part thereof, on or before December 31, 2020.
4. Exception. Interbank loans and bank borrowings remain subject to the DST under Sections 179, 195 and 198 of the NIRC, as amended.

Who is affected

• Borrowers and covered institutions with loan extensions or restructurings
• Micro-lending borrowers, including pawnshop borrowers

Deadlines and effectivity

• Loans falling due, or any part, on or before December 31, 2020
• Extensions and restructurings made on or before December 31, 2020