Stamp tax on several documentations, which include bills of lading and certificates, has doubled under the Philippines’ new Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Republic Act No. 10963 or TRAIN, which was signed by President Rodrigo Duterte on December 19, 2017, amends several sections of the National Internal Revenue Code of 1997, as amended. TRAIN is the first package under the comprehensive tax reform program of the government.
Sections 51 to 70 of TRAIN amend several sections of the NIRC that cover documentary stamp tax, which is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property.
Under TRAIN, stamp tax on bills of lading or receipts has doubled from only P1 to P2 if the value of goods exceeds P100 but does not exceed P1,000, and from P10 to P20 if the value exceeds P1,000.
Section 64 of TRAIN amends Section 191 of the NIRC, which now states that “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 documentary stamp tax of two pesos (P2.00), if the value of such goods exceeds one hundred pesos (P100.00) and does not exceed one thousand pesos (P1,000); twenty pesos (P20), 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.”
Section 61 of TRAIN also amends Section 188 of NIRC, increasing stamp tax on certificates from P15 to P30.
“On each certificate of damages 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, and not otherwise specified herein, there shall be collected a documentary stamp tax of thirty pesos (P30.00),” Section 61 states.
Stamp tax on warehouse receipts has also doubled from P15 to P30. NIRC’s Section 189 has been amended by TRAIN’s Section 62, which states that “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).”
TRAIN’s Section 70, meanwhile, amends NIRC’s Section 197, likewise doubling 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 such ship, vessel or steamer, and on any renewal or transfer of such charter, contract, agreement, letter or memorandum, TRAIN said there shall be collected a documentary stamp tax.
“If 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,” the law said.
If the registered gross tonnage exceeds 1,000 tons and does not exceed 10,000 tons, and the duration of the charter or contract does not exceed six months, P2,000 will now be collected for documentary stamp tax; and for each month or fraction of a month in excess of six months, an additional tax of P200 shall be paid.
If the registered gross tonnage exceeds 10,000 tons and the duration of the charter or contract does not exceed six months, the stamp tax is now P3,000; and for each month or fraction of a month in excess of six months, an additional tax of P300 shall be paid.
TRAIN took effect on January 1, 2018, and the implementing rules and regulations must be promulgated by the Department of Finance, upon the recommendation of the Internal Revenue commissioner, 30 days after the law’s effectivity. – Roumina Pablo
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