SECTION 1. SCOPE. - Pursuant to the provisions in Section 4 and Section 244 of Republic Act No. 8424 and Section 84 of Republic Act No. 10963, these regulations are hereby promulgated to implement the rate adjustment of documentary stamp taxes provided in Sections 51, 52, 53, 54, 55, 56, 57, 58, 59, 60,  61,  62,  63,  64,  65,  66,  67,  68,  69,  and  70  in  Republic  Act  No.  10963 otherwise  known  as the “Tax  Reform  for Accelerations  and Inclusion  (TRAIN) Law”.

SEC.  2.  NEW  RATE  OF  DST  ON  ORIGINAL  ISSUE  OF  SHARES  OF STOCKS. –

“SEC.  174.  Stamp  Tax  on  Original  Issue  of  Shares  of  Stock  - On  every original  issue,  whether  on  organization,  reorganization  or  for  any  lawful purpose,  of shares  of stock  by any  association,  company,  or corporation, there shall be collected  a documentary  stamp tax of two pesos (P2.00) on each Two hundred pesos (P200), or fractional part thereof, of the par value, of such shares of stock: Provided, That in the case of the original issue of shares of stock without par value, the amount of the documentary stamp tax herein  prescribed  shall  be  based  upon  the  actual  consideration  for  the issuance of such shares of stock: Provided, further, that in the case of stock dividends, on the actual value represented by each share.”

The rate of DST on the original issue of shares has been increased from One peso  (P1.00)  to  Two  pesos  (P2.00)  on  each  Two  hundred  pesos  (P200),  or fractional part thereof, of the par value of such shares of stock.

SEC. 3. NEW RATE OF DST ON STAMP TAX ON SALES, AGREEMENTS TO  SELL,   MEMORANDA   OF  SALES,   DELIVERIES   OR  TRANSFER   OF SHARES OR CERTIFICATES OF STOCK.

“SEC. 175. Stamp Tax on Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of Shares or Certificates of Stock. - On all sales, or agreements to sell, or memoranda of sales, or deliveries 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 stock, or to secure the future payment  of money, or for the future transfer of any stock, there shall be collected a documentary/stamp  tax of One peso and Fifty centavos (P1.50) on each Two hundred pesos (P200), or fractional part thereof, of the par value of such stock: Provided,  That only one tax shall be collected  on each  sale  or transfer  of stock  from  one  person  to another,  regardless  of whether  or  not  a  certificate  of  stock  or  obligation  is  issued,  indorsed,  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 tax herein  prescribed  shall  be  equivalent  to Fifty  percent  of the  documentary stamp tax paid upon the original issue of said stock.”

The  rate  of  DST  on  sales,  agreements   to  sell,  memoranda   of  sales, deliveries or transfer of shares or certificates of stock has been increased from Seventy-five  centavos  (P0.75) to One peso and fifty centavos  (P1.50) on each Two hundred pesos (P200), or fractional  part thereof, of the par value of such stock. In case of stocks without par value, the DST shall be equivalent to Fifty percent (50%) of the DST paid upon the original issue of said stock.

SEC.  4,  NEW  RATE  OF  DST  ON  CERTIFICATES   OF  PROFITS  OR INTEREST IN PROPERTY OR ACCUMULATIONS.  –

“SEC. 177. Stamp Tax on Certificates of Profits or Interest 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 One peso (P1.00) on each Two hundred pesos, or fractional part thereof, of the face value of such certificates or memorandum.”

The rate of DST on the Certificates of Profits or Interest in Property or Accumulations  has  been  increased  from  Fifty  centavos  (P0.50)  to One  pesos (P1.00) on each Two hundred pesos, or fractional part thereof, of the face value of such certificates or memorandum.

SEC.  5.  NEW  RATE  OF  DST  ON  BANK  CHECKS,  DRAFTS, CERTIFICATES OF DEPOSIT NOT BEARING INTEREST, AND OTHER INSTRUMENTS. –

 “SEC. 178. 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 Three pesos (P3.00).”

The rate of DST on bank checks, drafts, certificates of deposit not bearing interest, and other instruments has been increased from One peso and Fifty centavos (P1.50) to Three pesos (P3.00).”

SEC. 6. NEW RATE OF DST ON ALL DEBT INSTRUMENTS. –

“SEC. 179. Stamp Tax on All Debt Instruments. - On every original issue of debt instruments,  there shall be collected a documentary  stamp tax of One peso and Fifty centavos (P1.50) on each Two hundred pesos (P200.00), or fractional  part  thereof,  of  the  issue  price  of  any  such  debt  instruments: Provided, that for such debt instruments with terms of less than one (1) year, the documentary stamp tax to be collected shall be of a proportional amount in accordance  with the ratio of its term in number of days to three hundred sixty-five  (365)  days:  Provided,  further,  That only one documentary  stamp tax shall be imposed on either loan agreement, or promissory  notes issued to secure such loan.

The rate of DST on all debt instruments is increased from One peso (P1.00) to One peso and Fifty centavos (P1.50) on each Two hundred pesos (P200.00), or fractional part thereof, of the issue price of any such debt instruments.

SEC. 7. NEW RATE ON ALL BILLS OF EXCHANGE OR DRAFTS. –

“SEC. 180. Stamp Tax on All Bills of Exchange or Drafts. – On all bills of exchange (between points within the Philippines) or drafts, there shall be collected a documentary stamp tax of Sixty centavos (P0.60) on each Two hundred pesos (P200.00) or fractional part thereof, of the face value of any such bill of exchange or draft.”

The rate of DST on all bills of exchange or drafts has been increased from Thirty centavos (P0.30) to Sixty centavos (P0.60) on each Two hundred pesos (P200.00) or fractional part thereof, of the face value of any such bill of exchange or draft.

SEC.  8.  NEW  RATE  OF  DST  UPON   ACCEPTANCE   OF  BILLS   OF EXCHANGE AND OTHERS. -

“SEC. 181. Stamp Tax Upon Acceptance of Bills of Exchange and Others. - Upon any acceptance of payment of any bill of exchange or order for the payment of money purporting to be drawn in a foreign country but payable in the Philippines, there shall be collected a documentary stamp tax of Sixty centavos  (P0.60)  on  each  Two  hundred  pesos  (P200)  or  fractional  part thereof,  of  the  face  value  of  any  such  bill  of  exchange,  or  order,  or  the Philippine equivalent of such value, if expressed in foreign currency.”

The rate of DST on acceptance  of bills of exchange  and others all bills of exchange or drafts has been increased from Thirty centavos (P0.30) to Sixty centavos  (P0.60)  on  each  Two  hundred  pesos  (P200.00)  or  fractional  part thereof, of the face value of any such bill of exchange or draft, or the Philippine equivalent of such value, if expressed in foreign currency.

SEC. 9. NEW RATE OF DST ON FOREIGN BILLS OF EXCHANGE AND LETTERS OF CREDIT.

“SEC. 182. Stamp Tax on Foreign Bills of Exchange and Letters of Credit. - On  all  foreign  bills  of  exchange  and  letter  of  credit  (including  orders,  by telegraph or otherwise, for the payment of money issued by express or steamship companies or by any person or persons) drawn in but payable out of the Philippines in a set of three (3) or more according to the custom of merchants and bankers, there shall be collected a documentary stamp tax of Sixty centavos (P0.60) on each Two hundred pesos (P200), or fractional part thereof of the face value of any such bill of exchange or letter of credit or the Philippine equivalent of such face value if expressed in foreign currency.”

The rate of DST on all bills of exchange or drafts has been increased from Thirty centavos (P0.30) to Sixty centavos (P0.60) on each Two hundred pesos (P200), or fractional part thereof, of the face value of any such bill of exchange or letter of credit or the Philippine  equivalent  of such face value,  if expressed  in foreign currency.

SEC. 10. NEW RATE OF DST ON LIFE INSURANCE POLICIES

SEC.  183.  Stamp  Tax  on  Life  Insurance  Policies  –  On  all  policies  of insurance or other instruments by whatever name the same may be called whereby  any  insurance  shall  be made  or renewed  upon  any  life or lives, there shall be collected a one-time documentary  stamp tax at the following rates:

If the amount of insurance does not exceed P100, 000	Exempt
If the amount of insurance exceeds P100, 000 but does not exceed P300, 000	P20 . 00
If the amount of insurance exceeds P300, 000 but does not exceed P500, 000	P50 . 00
If the amount of insurance exceeds P500, 000 but does not exceed P750, 000	P100 . 00
If the amount of insurance exceeds P750, 000 but does not exceed P1, 000, 000	P150 . 00
If the amount of insurance exceeds P1, 000, 000	P200 . 00”

The rates of the DST on life insurance policies have been doubled.

SEC. 11. NEW RATE OF DST ON POLICIES  OF ANNUITIES  AND PRE- NEED PLANS. –

“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 of One peso (P1.00) on each Two hundred pesos (P200), or fractional part thereof, of the premium or installment payment on contract price collected. On pre-need plans, the documentary   stamp  tax  shall  be  Forty  centavos  (P0.40)  on  each  Two hundred   pesos   (P200),   or  fractional   part   thereof,   of  the  premium   or contribution collected.”

The rate of DST on annuities has been increased from Fifty centavos (P0.50) to  One  peso  (P1.00)  on  each  Two  hundred  pesos  (P200),  or  fractional  part thereof, of the premium or installment payment on contract price collected. Pre- need plans are now taxed at Forty centavos  (P0.40) from the previous  rate of Twenty centavos (P0.20).

SEC. 12. NEW RATE OF DST ON CERTIFICATES. –

“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 or 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 Thirty pesos (P30.00).”

The  rate  of  DST  on  certificates  has  been  increased  from  Fifteen  pesos (P15.00) to Thirty pesos (P30.00).

SEC. 13. NEW RATE OF DST ON WAREHOUSE RECEIPTS. –

“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  Thirty  pesos  (P30.00): 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 (P200).”

The rate of DST  on warehouse  receipts  has been  increased  from  Fifteen pesos (P15.00) to Thirty pesos (P30.00).

SEC. 14. NEW RATE OF DST ON JAI-ALAI, HORSE RACE, TICKETS, LOTTO, OR OTHER AUTHORIZED NUMBERS GAMES.

“SEC. 190. Stamp Tax on Jai-alai, Horse Race, Tickets, Lotto, or Other Authorized  Numbers  Games.  - On each jai-alai, horse race ticket, lotto, or other  authorized  numbers  games,  there  shall  be collected  a documentary stamp tax of Twenty centavos (P0.20): Provided, That if the cost of the ticket exceed One peso (P1.00), an additional tax of Twenty centavos (P0.20) on every One peso (P1.00), or fractional part thereof, shall be collected.”

The  rate  of DST  on jai-alai,  horse  race,  tickets,  lotto,  or other  authorized number  game  has  been  increased   from  Ten  centavos   (P0.10)  to  Twenty centavos  (P0.20);  and  if  the  cost  of  ticket  exceeds  One  peso  (P1.00),  the additional tax has been increased from Ten centavos (P0.10) to Twenty centavos (P0.20) on every One peso (P1.00), or fractional part thereof.

“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 (except on ferries across rivers), or to any foreign port, there shall be collected a documentary stamp tax of Two pesos (P2,00), if the value of such goods exceeds One hundred pesos (P100) and does not exceed One thousand pesos (P1,000); Twenty pesos (P20.00), if the value exceeds One thousand pesos (P1,000): 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.

The rate of DST on each bill of lading or receipt has been increased  from One  peso  (P1.00)  to Two  pesos  (P2.00),  if the  value  of goods  exceeds  One hundred pesos (P100) and does not exceed One thousand pesos (P1.000): and the rate of DST has been increased from Ten pesos (P10.00) to Twenty pesos (P20.00), if the value of goods exceeds One thousand pesos (P1,000).

SEC. 16. NEW RATE OF DST ON PROXIES. –

“SEC. 192. Stamp Tax on Proxies. - On each proxy for voting at any election of 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 Thirty pesos (P30.00).”

The  rate  of  DST  on  each  proxy  has  been  increased  from  Fifteen  pesos (P15.00) to Thirty pesos (P30.00).

SEC. 17. NEW RATE OF DST ON POWERS OF ATTORNEY. –

“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 Ten pesos (P10.00).”

The rate of DST on each power of attorney has been increased  from Five pesos (P5.00) to Ten pesos (P10.00).

SEC. 18. NEW RATE OF DST ON LEASES AND OTHER HIRING AGREEMENTS. –

“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  tax  of  Six  pesos  (P6.00)  for  the  first  Two  thousand pesos  (P2.000),  or  fractional  part  thereof,  and  an  additional  Two  pesos (P2.00) for every One thousand pesos (P1,000) or fractional part thereof, in excess of the first Two thousand pesos (P2,000) for each year of the term of said contract or agreement.”

The rate of DST on leases and other hiring agreements has been increased from Three pesos (P3.00) to Six pesos (P6.00) for the first Two thousand pesos (P2,000),  or fractional  part thereof;  and the additional  tax was increased  from One peso (P1.00) to Two pesos (P2.00) for every One thousand pesos (P1,000) or fractional part thereof, in excess of the first Two thousand pesos (P2,000).

SEC. 19. NEW RATE OF DST ON MORTGAGES, PLEDGES, AND DEEDS OF TRUST

“SECTION  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 of previously due and owing or forborne to be paid, being payable, and on any conveyance of land, estate, or property whatsoever, in thrust 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 collected a documentary stamp tax at the following rates:

(a)  When  the  amount  secured  does  not  exceed  Five  thousand   pesos (P5,000), Forty pesos (P40.00).

(b)  On  each  Five  thousand  pesos  (P5,000),  or  fractional  part  thereof  in excess  of Five  thousand  pesos  (P5.000),  an  additional  tax  of Twenty pesos P20.00.

The  rate  of  DST  on  every  mortgage,  pledge,  or  deed  of  trust  has  been increased from Twenty pesos (P20.00) to Forty pesos (P40.00), when amount secured does not exceed Five thousand pesos (P5,000); and the additional tax has been increased from Ten pesos (P10.00) to Twenty pesos (P20.00), on each Five  thousand  pesos  (P5,000),  or  fractional  part  thereof  in  excess  of  Five thousand pesos (P5,000).

SEC.  20.  NEW  RATE  OF  DST  ON  DEEDS  OF  SALE,  AND CONVEYANCES AND DONATION OF REAL PROPERTY. –

“SEC. 196. Stamp Tax on Deeds of Sale, Conveyances  and Donations  of Real  Property  -  On  all  conveyances,   donations,  deeds,  instruments,  or writings,  other  than  grants,  patents  or  original  certificates  of  adjudication issued by the government, whereby any land, tenement, or other realty sold shall be granted,  assigned,  transferred,  donated  or otherwise  conveyed  to the purchaser, or purchasers, or to any other person or persons designated by such purchaser or purchasers, or donee, there shall be collected a documentary  stamp tax, at the rates herein below prescribed, based on the consideration contracted to be paid for such realty or on its fair market value determined  in  accordance  with  Section  6(E)  of  this  Code,  whichever  is higher:   Provided.   That   when   one   of   the   contracting   parties   is   the Government   the   tax   herein   imposed   shall   be   based   on   the   actual consideration.

(a)  When the consideration,  or value received  or contracted  to be paid for such realty, after making  proper  allowance  or any encumbrance,  does not exceed One thousand pesos (P1,000), Fifteen pesos (P15.00).

(b)  For  each  additional  One  thousand  pesos  (P1,000)  or  fractional  part thereof in excess of One thousand pesos (P1,000) of such consideration or value, Fifteen pesos (P15.00)).

Transfers  exempt  from  donor’s  tax  under  Section  101  (a)  and  (b)  of this Code shall be exempt from the tax imposed under this section.

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, instrument 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.”

Donations of real property shall now be subject to DST under the amended Section 196. However, the following donations or gifts exempt from donor’s tax under Section 101 (A) and (B) shall be exempt from DST:

(A)  In the Case of Gifts Made by a Resident

(1)  Gifts made to or for the use of the National  Government  or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government; and

(2)  Gifts  in favor  of an educational  and/or  charitable,  religious,  cultural  or social welfare corporation, institution, accredited non-government organization, trust or philanthropic organization or research institution or organization: Provided, however, That not more than thirty percent (30%) of said gifts shall be used by such donee for administration  purposes. For  the  purpose  of  this  exemption,  a  ‘non-profit  educational  and/or charitable  corporation,  institution,  accredited  non-government organization,  trust  or  philanthropic  organization  and/or  research institution   or  organization’   is  a  school,  college  or  university   and/or charitable corporation, accredited non-government organization, trust or philanthropic organization and/or research institution or organization, incorporated as a non-stock entity, paying no dividends, governed by trustees  who  receive  no  compensation,  and  devoting  all  its  income, whether students’ fees or gifts, donation, subsidies or other forms of philanthropy, to the accomplishment and promotion of the purposes enumerated in its Articles of Incorporation.

(B)  In the Case of Gifts Made by a Nonresident not a Citizen of the Philippines

(1)  Gifts made to or for the use of the National  Government  or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government.

(2)  Gifts  in favor  of an educational  and/or  charitable,  religious,  cultural  or social welfare corporation, institution, foundation, trust or philanthropic organization  or research  institution  or organization:  Provided,  however, That not more than thirty percent  (30%) of said gifts shall be used by such donee for administration purposes.

SEC. 21. NEW RATE OF DST ON CHARTER PARTIES AND SIMILAR INSTRUMENTS.

 “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  streamer,  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 such ship, vessel or streamer, 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:

(a) lf the registered gross tonnage of the ship, vessel or steamer does not exceed one thousand (1,000) tons, and the duration of the charter or contract does not exceed six (6) months, One thousand pesos (P1,000); and for each month or fraction of a month in excess of six (6) months, an additional tax of One hundred pesos (P100.00) shall be paid.

(b)  If the registered gross tonnage exceeds one thousand (1,000) tons and does  not exceed  ten  thousand  (10,000)  tons,  and  the  duration  of the charter or contract does not exceed six (6) months, Two thousand pesos (P2,000); and for each month or fraction of a month in excess of six (6) months, an additional tax of Two hundred pesos (P200.00) shall be paid.

(c)  lf the registered gross tonnage exceeds ten thousand (10,000) tons and the duration of the charter or contract does not exceed six (6) months, Three  thousand  pesos  (P3,000);  and  for  each  month  or  fraction  of  a month in excess of six (6) months, an additional  tax of Three hundred pesos (P300.00) shall be paid.”

The  rates  of  DST  on  charter  parties  and  similar  instruments  have  been doubled.

SEC. 22. REPEALING CLAUSE. - All existing rules and regulations or parts thereof,  which  are  inconsistent  with  the  provisions  of  these  regulations,  are hereby repealed, amended or modified accordingly.

SEC. 23. SEPARABILITY  CLAUSE. - If any clause, sentence, provision or section  of these  Rules  shall  be held  invalid  or unconstitutional,  the remaining parts thereof shall not be affected thereby.

SEC.  24. EFFECTIVITY.  - These  regulations  shall take effect  after fifteen (15) days following publication in the Official Gazette or a newspaper of general circulation, whichever comes first.