Customs Commissioner Rey Leonardo Guerrero reiterated the strict collection of internal revenue stamps (IRS) tax in compliance with the TRAIN Law
All collection districts were directed to review all IRS collections and demand payment for deficient IRS taxes from concerned importers
Customs Commissioner Rey Leonardo Guerrero has reiterated the strict collection of internal revenue stamps (IRS) tax, particularly documentary stamp tax (DST), as well as the collection of payment of deficient IRS taxes from importers.
In Office of the Commissioner (OCOM) Memo No. 128-2021 dated August 18, Guerrero restated the collection of IRS tax must be strictly complied with as provided under the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 4-2018, which provides rules and regulation for implementing the new DST rates.
The TRAIN Law, which took effect in 2018, amends several sections of the National Internal Revenue Code of 1997 and increases the rate of DST for certificates and documents to P30 from the previous P15.
DST is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.
Under Section 12 of BIR RR 4-2018, the collection of DST covers “each certificate of damage or otherwise, and on every 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…”
Guerrero reminded district and subport collectors, collection division chiefs, and all others concerned to comply with RR 4-2018 “without due delay.”
All collection districts have also been told to review all IRS collections and demand payment for deficient IRS taxes from concerned importers.
In 2018, then Customs Commissioner Isidro Lapeña also issued a memo directing concerned customs offices to implement the increase in DST on certificates.
Aside from certificates and documents, the TRAIN Law doubled the documentary stamp tax for bills of lading or receipts, warehouse receipts, and charter parties and similar instruments.
TRAIN likewise increased the excise tax on fuel, which has affected the domestic charges of shipping lines, truckers, and other marine service providers, as fuel accounts for a big share of their operational costs.