RR No. 7-2009: Implements the Electronic Documentary Stamp Tax System to replace the Documentary Stamp Tax Electronic Imprinting Machine

Key points

1. Who must use the eDST system. The web-based system is mandatory for banks, quasi-banks, non-bank financial intermediaries, finance companies, and insurance, surety, fidelity and annuity companies. It also covers shipping and airline companies, pre-need companies on sale of pre-need plans (Section 186), and educational institutions for taxable certificates (Section 188), plus other industries the CIR requires by written notice. The CIR may exempt taxpayers on meritorious grounds, and taxpayers may also opt in.
2. Enrollment and payment. Taxpayers must first be enrolled in the BIR eFPS. The DST Return (BIR Form 2000) is filed and the amount paid through eFPS or the Electronic Fund Transfer Instruction System (eFTIS). DST on transfers of shares of stock classified as capital asset, or of real property classified as capital or ordinary assets, is not covered.
3. Account Owners. For juridical entities, authorized natural persons named in the board resolution enroll. Large Taxpayers Service taxpayers and those with a centralized DST payment scheme enroll through their head offices as the lone Account Owner. Those with a decentralized scheme may designate one or more departments or branches. An Account Owner may authorize as many users as needed without prior BIR approval.
4. DSEIM transition. DSEIMs covered by BIR permits may be used until December 31, 2009, or taxpayers may apply for the eDST System. Once enrolled, they can no longer use DSEIMs, but loaded DST balances may be used until December 31, 2009 only. Unutilized balances may be transferred to eDST after verification by the concerned BIR Office.
5. Pilot testing taxpayers. Taxpayers selected for pilot testing enroll upon effectivity. Their DSEIMs with loaded balance may still be used by branches not yet enrolled until December 31, 2009 or full use of the balance, whichever comes first. Transfers of DSEIMs need the requisite BIR permit.
6. Constructive Stamping. Authorities for Constructive Stamping or Receipt System (CS-RS) under RMO No. 14-2008 are automatically revoked once eDST is fully implemented or beginning January 1, 2010, whichever comes earlier.

Who is affected

• Banks, financial intermediaries, finance, insurance, surety, fidelity and annuity companies
• Shipping and airline companies
• Pre-need companies
• Educational institutions issuing taxable certificates

Deadlines and effectivity

• Issued October 2, 2009
• DSEIM use and loaded balances until December 31, 2009
• CS-RS authorities revoked when eDST is fully implemented or January 1, 2010, whichever is earlier