RR No. 09-2000: Identifies the persons liable and responsible for the payment/remittance of the Documentary Stamp Tax

Key points

1. Who is liable. DST is imposed on the person making, signing, issuing, accepting or transferring the document or facility evidencing the transaction. Any party to the taxable transaction is liable and responsible for paying and remitting the full amount.
2. Exempt party. If one party is exempt from DST, the other party who is not exempt is directly liable. If the exempt party is an agent of the Commissioner for collecting the tax, he must collect and remit the DST, and failing to do so makes him personally liable for the tax and the penalties under Title X of the Tax Code.
3. Who remits specific DST. The person who issued the instrument remits DST on bonds, debentures, certificates of indebtedness, deposit substitutes and similar instruments. The corporation remits DST on the original issue of its shares of stock, and the proprietor or operators remit DST on jai-alai, horse race, lotto or other authorized number games.
4. Entities listed in the Regulations. When a party to the taxable document is one of the entities enumerated in the Regulations, that entity is responsible for remitting the DST.
5. On-line electronic DST imprinting machine. Unless the Commissioner expressly exempts them, banks, quasi-banks, non-bank financial intermediaries, finance companies, insurance, surety, fidelity and annuity companies must use the machine. So must the Philippine Stock Exchange for locally traded shares and securities, shipping and airline companies, pre-need companies on sale of pre-need plans, and other industries the Commissioner requires.

Who is affected

• Parties to taxable documents or transactions
• Banks, finance and insurance companies
• Philippine Stock Exchange
• Shipping and airline companies
• Pre-need companies