RMO No. 08-98: Prescribes the policies and procedures to implement the Corporate Stock and Documentary Stamp Tax Program

Key points

1. Who files. The Corporate Stock DST Declaration and the DST Return (BIR Form No. 2000) must be filed by all existing corporations when DST is still due on subscribed shares. They must also be filed by all new corporations and by existing corporations with authorized increased capital stock when DST is due on subscriptions made after the authorization.
2. 25% surcharge. A surcharge of 25% of the amount due applies for failure to file the return and pay the tax on or before the deadline. It also applies for failure to pay the full amount of tax shown in the return.
3. 50% penalty. A penalty of 50% of the total amount due applies for willful neglect to file within the prescribed period, or when a false or fraudulent return is willfully made.

Who is affected

• All existing corporations with DST still due on subscribed shares
• All new corporations
• Existing corporations with authorized increased capital stock