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This page features the full text of
Republic Act No. 7660
AN
ACT RATIONALIZING FURTHER THE STRUCTURE AND ADMINISTRATION OF THE
DOCUMENTARY
STAMP TAX, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, ALLOCATING FUNDS FOR SPECIFIC
PROGRAMS,
AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 7660AN
ACT RATIONALIZING FURTHER THE STRUCTURE AND ADMINISTRATION OF THE
DOCUMENTARY
STAMP TAX, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, ALLOCATING FUNDS FOR SPECIFIC
PROGRAMS,
AND FOR OTHER PURPOSES.
Section
1. Section 173 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:
"Sec.
173. Stamp taxes upon documents,
instruments, loan agreements, and papers. — Upon documents,
instruments,
loan agreements, and papers, and upon acceptances, assignments, sales
and
transfers of the obligation, right, or property incident thereto, there
shall be levied, collected and paid for, and in respect of the
transaction
so had or accomplished, the corresponding documentary stamp taxes
prescribed
in the following sections of this Title, by the person making, signing,
issuing, accepting, or transferring the same wherever the document is
made,
signed, issued, accepted, or transferred when the obligation or right
arises
from Philippine sources or the property is situated in the Philippines,
and at the same time such act is done or transaction had: Provided,
That whenever one party to the taxable document enjoys exemption from
the
tax herein imposed, the other party thereto who is not exempt shall be
the one directly liable for the tax." chanrobles virtuallaw libraryred
Sec.
2. Section 174 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:
"Sec.
174. Stamp tax on bonds, debentures,
and certificates of indebtedness. — On all bonds, debentures, and
certificates
of indebtedness issued by any association, company, or corporation,
there
shall be collected a documentary stamp tax of one peso and fifty
centavos
(P1.50) on each two hundred pesos, or fractional part thereof, of the
face
value of such documents."
Sec.
3. Section 175 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:
"Sec.
175. Stamp tax on original issue
of certificates of stock. — On every original issue, whether on
organization,
reorganization or for any lawful purpose, of certificates of stock by
any
association, company, or corporations, there shall be collected a
documentary
stamp tax of Two pesos (P2.00) on each two hundred pesos, or fractional
part thereof, of the par value of such certificates: Provided,
That
in the case of the original issue of stock without par value the amount
of the documentary stamp tax herein prescribed shall be based upon the
actual consideration received by the association, company, or
corporation
for the issuance of such stock, and in the case of stock dividends on
the
actual value represented by each share."
Sec.
4. Section 176 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:
"Sec.
176. Stamp tax on sales, agreements
to sell, memoranda of sales, deliveries or transfer of due-bills,
certificates
of obligation, or shares or certificates of stock. — On all sales, or
agreements
to sell, or memoranda of sales, or deliveries, or shares or transfer of
due-bills, certificates of obligation, or shares or certificates of
stock
in any association, company or corporation, or transfer of such
securities
by assignment in blank, or by delivery, or by any paper or agreement,
or
memorandum or other evidences of transfer or sale whether entitling the
holder in any manner to the benefit of such due-bills, certificates of
obligation or stock, or to secure the future payment of money, or for
the
future transfer of any due-bill, certificates of obligation or stock,
there
shall be collected a documentary stamp tax of One peso (P1.00) on each
two hundred pesos, or fractional part thereof, of the par value of such
due-bill, certificates of obligation or stock: Provided, That
only
one tax shall be collected on each sale or transfer of stock or
securities
from one person to another, regardless of whether or not a certificate
of stock or obligation is issued, endorsed, or delivered in pursuance
of
such sale or transfer: and Provided, further, That in the case
of
stock without par value the amount of the documentary stamp herein
prescribed
shall be equivalent to twenty-five per centum of the documentary stamp
tax paid upon the original issue of said stock: Provided,
furthermore, That the tax herein imposed shall be increased to One
peso and
fifty
centavos (P1.50) beginning 1996."
Sec.
5. Section 178 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
178. Stamp tax on certificates
of profits or interests in property or accumulations. — On all
certificates
of profits, or any certificate or memorandum showing interest in the
property
or accumulations of any association, company, or corporation, and on
all
transfers of such certificates or memoranda, there shall be collected a
documentary stamp tax of Fifty centavos (P0.50) on each two hundred
pesos,
or fractional part thereof, of the face value of such certificate or
memorandum."
Sec.
6. Section 179 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
179. Stamp tax on bank checks,
drafts, certificates of deposit not bearing interest, and other
instruments.
— On each bank check, draft, or certificate of deposit not drawing
interest,
or order for the payment of any sum of money drawn upon or issued by
any
bank, trust company, or any person or persons, companies or
corporations,
at sight or on demand, there shall be collected a documentary stamp tax
of One peso and twenty-five centavos (P1.25): Provided, That
the
tax herein imposed shall be increased to One peso and fifty centavos
(P1.50)
beginning 1996."
Sec.
7. Section 180 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
180. Stamp tax on all loan agreements,
promissory notes, bills of exchange, drafts, instruments and securities
issued by the government or any of its instrumentalities, certificates
of deposit bearing interest and others not payable on sight or demand.
— On all loan agreements signed abroad wherein the object of the
contract
is located or used in the Philippines; bills of exchange (between
points
within the Philippines), drafts, instruments and securities issued by
the
Government or any of its instrumentalities or certificates of deposits
drawing interest, or orders for the payment of any sum of money
otherwise
than at the sight or on demand, or on all promissory notes, whether
negotiable
or non- negotiable, except bank notes issued for circulation, and on
each
renewal of any such note, there shall be collected a documentary stamp
tax of Thirty centavos (P0.30) on each Two hundred pesos, or fractional
part thereof, of the face value of any such agreement, bill of
exchange,
draft, certificate of deposit, or note: Provided, That only one
documentary stamp tax shall be imposed on either loan agreement, or
promissory
note issued to secure such loan, whichever will yield a higher tax: Provided,
however, That loan agreements or promissory notes the aggregate of
which does not exceed Two hundred fifty thousand pesos (P250,000)
executed
by an individual for his purchase on installment for his personal use
or
that of his family and not for business, resale, barter or hire of a
house,
lot, motor vehicle, appliance or furniture shall be exempt from the
payment
of the documentary stamp tax provided under this section."chanrobles virtuallaw libraryred
Sec.
8. Section 184 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
184. Stamp tax on policies of
insurance upon property. — On all policies of insurance or other
instruments
by whatever name the same may be called, by which insurance shall be
made
or renewed upon property of any description, including rents or
profits,
against peril by sea or on inland waters, or by fire or lightning,
there
shall be collected a documentary stamp tax of Fifty centavos (P0.50) on
each four pesos, or fractional part thereof, of the amount of premium
charged: Provided,
however, That no documentary stamp tax shall be collected on
reinsurance
contracts or on any instrument by which cession or acceptance of
insurance
risks under any reinsurance agreement is effected or recorded."
Sec.
9. Section 185 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
185. Stamp tax on fidelity bonds
and other insurance policies. — On all policies of insurance or bonds
or
obligations of the nature of indemnity for loss, damage, or liability
made
or renewed by any person, association, company or corporation
transacting
the business of accident, fidelity, employer's liability, plate, glass,
steam boiler, burglar, elevator, automatic sprinkler, or other branch
of
insurance (except life, marine, inland, and fire insurance), and all
bonds,
undertakings, or recognizances, conditioned for the performance of the
duties of any office or position, for the doing or not doing of
anything
therein specified, and on all obligations guaranteeing the validity or
legality of any bonds or other obligations issued by any province,
city,
municipality, or other public body or organization, and on all
obligations
guaranteeing the title to any real estate, or guaranteeing any
mercantile
credits, which may be made or renewed by any such person, company or
corporation,
there shall be collected a documentary stamp tax of Fifty centavos
(P0.50)
on each four pesos, or fractional part thereof of the premium charged."
Sec.
10. Section 186 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
186. Stamp tax on policies of
annuities and pre-need plans. — On all policies of annuities, or other
instruments by whatever name the same may be called, whereby an annuity
may be made, transferred, or redeemed, there shall be collected a
documentary
stamp tax on One peso and fifty centavos (P1.50) on each two hundred
pesos
or fractional part thereof, of the capital of the annuity, or should
this
be unknown, then on each two hundred pesos, or fractional part thereof,
of thirty-three and one-third times the annual income.On
pre-need plans, the documentary stamp tax shall be at Fifty centavos
(P0.50)
on each five hundred pesos (P500.00), or fractional part thereof, of
the
value or amount of the plan. "
Sec.
11. Section 187 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
187. Stamp tax on indemnity bonds.
— On all bonds for indemnifying any person, firm or corporation who
shall
become bound or engaged as surety for the payment of any sum of money
or
for the due execution or performance of the duties of any office or
position
or to account for money received by virtue thereof, and all other bonds
of any description, except such as may be required in legal
proceedings,
or are otherwise provided for herein, there shall be collected a
documentary
stamp tax of Ten centavos (P0.10) on each four pesos or fractional part
thereof of the premium charged: Provided, That the tax herein
imposed
shall be increased to Thirty centavos (P0.30) on each four pesos or
fractional
part thereof of the premium charged beginning 1996."
Sec.
12. Section 188 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
188. Stamp tax on certificates.
— On each certificate of damage or otherwise, and on every other
certificate
or document issued by any customs officer, marine surveyor, or other
person
acting as such, and on each certificate issued by a notary public, and
on each certificate of any description required by law or by rules and
regulations of a public office, or which is issued for the purpose of
giving
information, or establishing proof of a fact, and not otherwise
specified
herein, there shall be collected a documentary stamp tax of Ten pesos
(P10.00): Provided,
That the tax herein imposed shall be increased to Fifteen pesos
(P15.00)
beginning 1996."chanrobles virtuallaw libraryred
Sec.
13.Section 189 of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:chanroblesvirtualawlibrary
"Sec.
189. Stamp tax on warehouse receipts.
— On each warehouse receipt for property held in storage in a public or
private warehouse or yard for any person other than the proprietor of
such
warehouse or yard, there shall be collected a documentary stamp tax of
Ten pesos (P10.00): Provided, That no tax shall be collected on
each warehouse receipt issued to any one person in any one calendar
month
covering property the value of which does not exceed two hundred pesos:
Provided, further, That the tax herein imposed shall be
increased
to Fifteen pesos (P15.00) beginning 1996."
Sec.
14. Section 190 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
190. Stamp tax on jai-alai, horse
race tickets, lotto, or other authorized numbers games. — On each
jai-alai,
horse race tickets, lotto, or other authorized numbers games, there
shall
be collected a documentary stamp tax of ten centavos (P0.10): Provided,
That if the cost of the ticket exceeds One peso (P1.00), an additional
tax of Ten centavos (P0.10) on every One peso (P1.00) or fractional
part
thereof shall be collected."
Sec.
15. Section 191 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
191. Stamp tax on bills of lading
or receipts. — On each set of bills of lading or receipts (except
charter
party) for any goods, merchandise, or effects shipped from one port or
place in the Philippines to another port or place in the Philippines
(except
on ferries across rivers), or to any foreign port, there shall be
collected
a documentary stamp tax of One peso (P1.00), if the value of such goods
exceed One hundred pesos (P100.00), and does not exceed One thousand
pesos
(P1,000); ten pesos (P10.00) if the value exceeds One thousand pesos
(P1,000.00): Provided, however, That freight tickets covering
goods,
merchandise
or effects carried as accompanied baggage of passengers on land and
water
carriers primarily engaged in the transportation of passengers are
hereby
exempt."
Sec.
16. Section 192 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
192. Stamp tax on proxies. —
On each proxy for voting at any election for officers of any company or
association, or for any other purpose, except proxies issued affecting
the affairs of associations or corporations organized for religious,
charitable,
or literary purposes, there shall be collected a documentary stamp tax
of Ten pesos (P10.00): Provided, That the tax herein imposed
shall
be increased to Fifteen pesos (P15.00) beginning 1996."
Sec.
17. Section 193 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
193. Stamp tax on powers of attorney.
— On each power of attorney to perform any act whatsoever, except acts
connected with the collection of claims due from or accruing to the
Government
of the Republic of the Philippines, or the government of any province,
city or municipality, there shall be collected a documentary stamp tax
of Five pesos (P5.00)."
Sec.
18. Section 194 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
194. Stamp tax on leases and
other hiring agreements. — On each lease, agreement, memorandum, or
contract
for hire, use or rent of any lands or tenements, or portions thereof,
there
shall be collected a documentary stamp of Three pesos (P3.00) for the
first
Two Thousand pesos (P2,000.00), or fractional part thereof, and an
additional
One peso (P1.00) for every One thousand pesos (P1,000.00) or fractional
part thereof in excess of the first two thousand pesos (P2,000.00) for
each year of the term of said contracts or agreement."
Sec.
19. Section 195 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
195. Stamp tax on mortgages,
pledges, and deeds of trust. — On every mortgage or pledge of lands,
estate,
or property, real or personal, heritable or movable, whatsoever, where
the same shall be made as a security for the payment of any definite
and
certain sum of money lent at the time or previously due and owing or
forborne
to be paid being payable, and on any conveyance of land, estate, or
property
whatsoever, in trust or to be sold, or otherwise converted into money
which
shall be and intended only as security, either by express stipulation
or
otherwise, there shall be collected a documentary stamp tax at the
following
rates:chanroblesvirtualawlibrary
"(a)
When the amount secured does not exceed Five thousand pesos, Twenty
pesos
(P20.00);
"(b) On
each Five Thousand pesos, or fractional part thereof in excess of Five
thousand pesos, an additional tax of Ten pesos (P10.00).
"On
any mortgage, pledge, or deed of trust, where the same shall be made
as fluctuating
account or future advances without fixed limit, the documentary stamp
tax
on such mortgage, pledge or deed of trust shall be computed on the
amount
actually loaned or given at the time of the execution of the mortgage,
pledge, or deed of trust. However,
if subsequent advances are made on such mortgage, pledge or deed of
trust,
additional documentary stamp tax shall be paid which shall be computed
on the basis of the amount advanced or loaned at the rates specified
above: Provided,
however, That if the full amount of the loan or credit granted
under
the mortgage, pledge or deed of trust is specified in such mortgage,
pledge
or deed of trust, the documentary stamp tax prescribed in this section
shall be paid and computed on the full amount of the loan or credit
granted."
Sec.
20. Section 196 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
196. Stamp tax on deeds of sale
and conveyance of real property. — On all conveyances, deeds,
instruments,
or writings, other than grants, patents, or original certificates of
adjudication
issued by the Government, whereby any lands, tenements or other realty
sold shall be granted, assigned, transferred, or otherwise conveyed to
the purchaser, or purchasers, or to any other person or persons
designated
by such purchaser or purchasers, there shall be collected a documentary
stamp tax at the following rates:chanrobles virtuallaw libraryred"(a) When
the consideration, or value received or contracted to be paid for such
realty, after making proper allowance of any encumbrance, does not
exceed
one thousand pesos, Fifteen pesos (P15.00).
"(b) For
each additional one thousand pesos, or fractional part thereof in
excess
of one thousand pesos of such consideration or value, Fifteen pesos
(P15.00).
"When
it appears that the amount of the documentary stamp tax payable
hereunder
has been reduced by an incorrect statement, of the consideration in any
conveyance, deed, instruments, or writing subject to such tax the
Commissioner,
provincial or city treasurer, or other revenue officer shall from the
assessment
rolls or other reliable source of information, assess the property of
its
true market value and collect the proper tax thereon."
Sec.
21. Section 197 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
197. Stamp tax on charter parties
and similar instruments. — On every charter party, contract, or
agreement
for the charter of any ship, vessel, or steamer, or any letter or
memorandum
or other writing between the captain, master, or owner, or other person
acting as agent of any ship, vessel, or steamer and any other person or
persons for or relating to the charter of any ship, vessel, or steamer,
and on any renewal or transfer of such charter, contract, agreement,
letter
or memorandum, there shall be collected a documentary stamp tax at the
following rates:chanroblesvirtualawlibrary
"(a) If
the registered gross tonnage of the ship, vessel, or steamer does not
exceed
one thousand tons, and the duration of the charter or contract does not
exceed six months, Five hundred pesos (P500.00); and for each month or
fraction of a month in excess of six months, an additional tax of Fifty
pesos (P50.00) shall be paid.
"(b)If
the registered gross tonnage exceed one thousand tons and does not
exceed
ten thousand tons, and the duration of the charter or contract does not
exceed six months, One thousand pesos (P1,000); and for each month or
fraction
of a month in excess of six months, an additional tax of One hundred
pesos
(P100.00) shall be paid.
"(c)If
the registered gross tonnage exceeds ten thousand tons and the duration
of the charter or contract does not exceed six months, One thousand
five
hundred pesos (P1,500); and for each month or fraction of a month in
excess
of six months, an additional tax of One hundred fifty pesos (P150.00)
shall
be paid."
Sec.
22. The incremental revenues
from the increase in the documentary stamp taxes under this Act shall
be
set aside for the following purposes:chanroblesvirtualawlibrary
(a) In
1994 and 1995, twenty-five percent (25%) thereof respectively, shall
accrue
to the Unified Home-Lending Program under Executive Order No. 90
particularly
for mass-socialized housing program to be allocated as follows: fifty
percent
(50%) for mass-socialized housing; thirty percent (30%) for the
community
mortgage program; and twenty percent (20%) for land banking and
development
to be administered by the National Housing Authority: Provided, That
not
more than one percent (1%) of the respective allocations hereof shall
be
used for administrative expenses;chanrobles virtuallaw libraryred
(b)In
1996, twenty-five percent (25%) thereof to be utilized for the National
Health Insurance Program that hereafter may be mandated by law;
and
(c)In
1994 and every year thereafter, twenty-five percent (25%) thereof shall
accrue to a Special Education Fund to be administered by the Department
of Education, Culture and Sports for the construction and repair of
school
facilities, training of teachers, and procurement or production of
instructional
materials and teaching aids;
(d)In
1994 and every year thereafter, fifty percent (50%) thereof shall
accrue
to a Special Infrastructure Fund for the construction and repair of
roads,
bridges, dams and irrigation, seaports and hydroelectric and other
indigenous
power projects: Provided, however, That for the years 1994 and
1995,
thirty percent (30%), and for the years 1996, 1997, and 1998, twenty
percent
(20%), of this fund shall be allocated for depressed provinces as
declared
by the President as of the time of the effectivity of this Act: Provided,
further, That availments under this fund shall be determined by
the
President on the basis of equity.
Provided,
finally, That in paragraphs b, c, and d of this section not more
than
one percent (1%) of the allocated funds thereof shall be used for the
administrative
expenses by the implementing agencies.
Sec.
23. The Secretary of Finance
shall, upon the recommendation of the Commissioner of Internal Revenue,
promulgate the necessary rules and regulations for the effective
implementation
of this Act.
Sec.
24. All laws, decrees, orders,
rules and regulations, or any part thereof, which are inconsistent with
this Act, are hereby repealed or modified accordingly.chanrobles virtuallaw libraryred
Sec.
25. If for any reason, any section
or provision of this Act is declared to be unconstitutional, the other
sections or provisions hereof which are not affected thereby shall
continue
to be in full force and effect.
Sec.
26. This Act shall take effect
fifteen (15) days after its publication in the Official Gazette or in
at
least two (2) national newspapers of general circulation whichever
comes
earlier.
Approved:
December
23, 1993
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