RR No. 4-2018 — Provides the rules and regulations implementing the Documentary Stamp Tax rate adjustment under RA No. 10963 (TRAIN Law) (Published in Manila Bulletin on January 18, 2018) Digest | Full Text

rur REPUBLTc' bp I)HTLTPPTNES BUREAU 0F llllEfiiin r. t'i fivEi'rtln DE,PA}{TMENT OF FINANCI, RDCOR/0DS:4M0GIA. l.l\ML5.1t-)l{ BUREAU OF INTERNAI RE\'ENUE JAN t 5 20i8/, Quezon City RECE T,W} Decernber l9^ 2017 RE'ENUB REGULATT,NS No. .4' A o l 8 SUB.IECT: Rules and Regulations Implementing the Documentary Stamp Tax Rate Adjustment Under Republic Act No. 10963, otherwise Known as the o'Tax Reform For Acceleration and Inclusion (TRAIN) Laly,, TO AII Revenue Olficials, Employees and Others Concernecl SECTION 1. SCOPE. - PursLtant to the provisions in Section 4 and Sectiot't 244 of Republic Act No. 8424 and Section 84 of Republic Act No. 10963. these regulatiorrs are hereby prornulgated to implelrent the rate adjustrnent of docurnentary starnp taxes provicied in Sections 51.52. 53.54,55,56.57,58,59,60, 61.62,63.64.65,6,6.6i.6g.69, ancl 70 in Reptrblic Act No. 10963 otherwise known as the "Tax Reform fbr Acceleratic'rns and Inclusion (TRAIN) Law". SEC. 2. NEW RATE OF DST ON ORIGINAL ISSUE OF SHARES OF STOCKS. - - "SEC. 174. Stuntp Tax on Original Issue of Slrures of Stctck On every origipal issue. whetlrer ott organization. reorganization ol for any lawfirl pLrrpose. oisSar.is of stock by any associatiotr. cotnpany. or coryoration. there shali be collectecl a docttrnetltary statnp tax of two pesos (P2.00) on each Trvo hunclred pesos (p200). or fi'actional part theleof. o1'tlte par value, of such shares of stock: Provideci. That in the case of the original issue ol shares of stock without par value. the arrourrt of tle doctttnentary statnp tax herein prescribed shall be basecl upon the actLral consideration fbr the issuallce ol sttch shares of stock: Provided. further. that irr the case of stock dividends. on the actual valr-re repr.esented by each sltar.e.,' The rate of DST ott the original issue of shares has beerr increased fi-om One peso (P1.00) to Two pesos (P2.00) on each Two hundred pesos (P200), or fractional part thereof, o1'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..\tamp Tax on Sules, Agreetltents tc) Sell, Mentorcrnclu ctf'Salcs, Delit,er.ias or Transfet'of Shares or Cet'tificate.s o.f Stock. - On all sales. or agreernelts to sell. or lnetloranda ol sales. or deliveries ot'lranslel of sLrch securilies bv assignrneitt in blank. or bv delivert'. or by any paper or agreenrent. ol rrerrorapdLrm or otlrer evidences oltrallsf'er or sale rvhether entitling tlre holder in an-r,mar,uter to the benefit ol such stock. or to secure the lLrtirre pavlreltt of rnoncl.'. or 1br tlte lulure lransfbr. clf \r

_ Revenue Regulation,s lVo. Page 2 of9 any stock. thele shall be collected a docrureutar)/ stamp tax of One peso and Fifty centavos (P1.50) on each Trvo huirdred pesos (P200), or fractional part thereof. of tire par value of such stock: Plovided. That only one tax shall be collected on each sale or' transfer of stock fi'oln one pel'solr to another. regaldless of whether or uot a certificate of stock or obligation is issr"red. indorsed. or delivered in pursLrance ol such sale or tratrsfer: and Provided. lirrther. That in tlre case olstock rvithout par value the amor.rr.rt of the documentary starnp tax herein prescribed shall be equivalent to Fifb,percent of the documentary stamp tax paid upon the original issue of said stock." The rate of DST on sales. agreernents to sell. rnernoranda of sales. deliveries or transfer of shares or certificates of stocli has been increased fionr Seventy-five centavos (P0.75) to One peso and fiftl,centavos (P1.50) on each Trvo hundred pesos (P200), or fl'actional part thereof, of the par value of sLrch stook. ln case of stocks without par value, the DST shall be equivalent to Fift1, 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 Cerlificales of Profits ot' Inlere.yt in Pt'oper0t or - Accuttrulatiorrs. On all cerlificates of profits. or any certificate or nternorandunt showing iuterest in the ploperty or acclllnulations of auy association. collpalty or corporatior.r, and or.r all tlansfers ol sLrch cefiificates 01' rremoranda. there shall be collected a docurrentar),stamp tax of One peso (P1.00) on each Two hundred pesos, or fi'actional parl thereof, of the face value of such certificates or rlernorandurn." The rate of DST on the Cerlificates of Profits or Interest in Property or Accumulations has been increased frorn Fifty centavos (P0.50) to One pesos (P1.00) on each Two hundred pesos, or fractional parl thereof, of the face value of such certificates or rnemoraltdurn. SEC. 5. NEW RATE OF DST ON BANK CHECKS, DRAFTS, CERTIFICATES OF DEPOSIT NOT BEARING INTEREST, AND OTHER INSTRUMENTS. - "SEC. 178. Stcntp Tax on Bunk Checks, Druft,s, Certificutes of Deposit nol Beuring Interesl, and Olher Inslrtunents. - On eaclr bank clieck. drafi. ol certificate of deposit not drarving interest. or order for the paylrent of any sunt of rnoltey drawn upon ot' issLred by any bank. trust colnpany. or any person ol' pelsons. contpan ies or' corporatiorts. at sight or on dernaud, tl-rere shall be collected a docurlentary stamp tax of Tlrree pesos (P3.00)." Tlre rate of DST on balrk checks, drafts, cerlificates of deposit not bearing interest, attd other instruments has beerr increased fi"om One peso and Fifty centavos (P1.50) to Three pesos (P3.00 t. SEC. 6. NEW RATE OF DST ON ALL DEBT INSTRUMENTS. - "SEC. 179. Stantp Tqx ctn All Debt Inslrumcnts. - On every original issLre of debt iltstrutneltts. there shall be collected a doclln-)entar),stamp tax of One peso and Fifty celltavos (P1.50) otr each Two ltundred pesos (P200.00). or lractional parl tl-rereofl of the issue price of-attv such debt instrurnenls: Provided. that fol sLrch debl instrr:tlents u'ith terms of less tharr one ( 1) year. the documer.ltarv stamll tax to be collected shall Ll EU8EAU OT INTERHAT REVM\'IIE V, ILEORDS MGT. I}tl.$IoN t0:40 A.U, JAN l5 20lS t+ itr,ek,EvE,tr /*/t,,\r"/w."/ia'

_ Ret,enuc Regulatious l'{o. Page 3 of9 be of a ploportional aurollnt in accordance with tlie latio of its term in r-rLrnrbel of days to three liundred sixty-five (365) days: Pt'ovidecl, /ut'ther. That only one documentar'1, stan.rp tax shall be impclsed on either loan agleement. or prouiissory notes issued to secure such loan. xxx" The rate o1-DSI- on all debt instruments is increased fl'orn One peso (P1.00) to One peso and Fifty centavos (P1.50) on each Trvo hundred pesos (P200.00), or fi'actional part thereof, of the issue price of anl,sLrch debt instrurnenls. SEC. 7. NEW RATE ON ALL BILLS OF EXCHANGE OR DRAFTS. - "SEC. 180.StantpTuxonAll l]illsof'ExchungeorDt'ct/is. -Onall billsofexchange (between points within the Philippines) or drafls. there shall be collected a documentar_v stalrp tax of Sixt1, centavos (P0.60) on each Two hLrndled pesos (P200.00) or il'actional part thereof, of the fhce value of any sLrch bill of exchange or draft." The rate of DST on all bills of exchange or drafts has been increased frorn Thirtl, centavos (P0.30) to Sixty centavos (P0.60) on each Two hundred pesos (P200.00) or fractional part thereo{. of the face value of any sLrch bill of exchange or draft. SEC. 8. NEW RATE OF DST UPON ACCEPTANCE OF BILLS OF EXCHANGE AND OTHERS. _ "SEC. 181 . Stamp Tax Uport Acceptctnce o.f Bills of Exchcutge qncl Others. -... Upon any acceptauce ol payment of an1, bill of exchange or order for the payrnent of money purporling to be drawn in a foreign country bLrt payable in the Philippines, there shall be collected a documentary stamp tax of Sixty cerrtavos (P0.60) on each Two hundred pesos (P200) or fi'actional part thereof,^ of the face value of any such bill of exchange. or order. ol the Philippine equivalent of such value. if expressed in foreign currency." The rate oIDST on aoceptance of bills of exchange and others all bills of exchange or drafts has been increased 1r'orn Thirty centavos (P0.30) to Sixty centavos (P0.60) on eaclr Two hundred pesos (P200.00) or fractional part tlrereof, of the I'ace value of arry 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. Slcnry Tu.r on F()t'L'ign Bills of Erchunge and Letlers of Credit. On all foreign bills of exchange and letter of creclit (inclLrding orders. by telegraph or othet'wise, for the paytnent of money issLrecl by express or steamship companies or by any person or persons) drawn in bLrt pa1'able oLrt of the Philippines in a set of three (3) or more according to the custom of merchants and bankers. tlrere shall be collected a docurrentary stamp tax of Sixt.v centavos (P0.60) on each Two hundred pesos (P200). or fi'actional part thereoL ofthe face vaiue ofan1' sucir bill ofexchange EUBE.AU OT TNTERNAL BIVEilITX \f/ V/ RECOrcS MCT. DTV$ION 'lJDAN:4l05 tt /4. 14, 20lE .?E-rY:LY&!'*'E41Yjl:'fuill:a,'t-

Ret,enrte Regulotictrts No' Page 4 of 9 - orletterofcr.eclit.ortlrePhilippineeqLrivaletltofSLlChfacevalLre.ifexpresseditl foreign cLtrrellcY '" cpIqear,rl,tr,atirlvi"eoiTr"se"h,o(epfo,0rf.oa3sft0ettt)fc'o,h1.foffaD*Sc.SeixTtvuyaaolclutneteena'toailllfveobxaspnilrlyse(ps,ro0s"etf.-6c,el0xU;icni;ihL;.fa-ooutrrf.gereei.gx,cnohrracr"ldnrogrrlae'efhtnos,c*r\dh"leraetstdebrepoeefsnocistn'ec(cprlei2t'a0os0er)d,thoferroPfrihn'aiclTiptihopinirntayel SEC.I0.NEwRATEoFDSToNLIFEINSURANCEPOLICIES.- .'SEC.183.Stont1lTuxonLi/blnsttt.ctttcePolicies'-orrirllpoliciesofit-lst'tt.atlceor wherebY atly it]sltratlce osclhtohacelulrtnbineesutmtrauarrycnleesntoatsrl.nrbpeyutearr,x,vvheacatlttehLvelpefoto't,llalaotluwreyittilhigie.ras"tatelslle:ivenlsa.)irltebe'ecashlleadll' be collected a oue-tiule lf the atroittlt of it.lsltratlce cloes not exceed P I 00'000 Exetlpt lf the atlottttt of insurance exceeds P20.00 P 100.000 birt does not exceed P300'000 lf the atttot"tttt of insr"trance exceeds P50.00 P300.000 but cloes trot exceed P500'000 1f the anloitnt of insr:t'ance exceeds P 100.00 P500.000 but does trot exceed P750'000 '000'000 lf the amount of insurance exceeds P 1 50'00 P750.000 br-rt does not exceecl P I lf the amount of insttrance exceeds P I '000'000 P200.00" Tlreratesof'DSTontifeinsurancepolicieslravebeendotrbled. SEC.II.NEwRATEoFDSToNPOLICIESoFANNUITIESANDPRE- NEED PLANS. - ..sEC. I 86. Srantp Tax on Policies o.f AtTtttities cutcl Pre-l'{eecl Plans' - on all policies of annuities. o, otl,,., instrurnents by whatever nanre the salne lnay be called'.whereby adfc(rpootal0claclu.e4tnlinc0otetr)renraotdtl,ia.t.,rpyy.oaomr'.S,thati';ayiTr;lnbrJ;rp-e'oe;tm;aoh;xauf;ncoocplflferleou,tclttnltlreerap.enppi1sres'oe,sefsloe.ucI.pil{ro,PZ-.ct.Om1,.-lr'Oo0r.o;,0..',rre)eo,irordttlanfseri'ytaeeacaslnltctmilahoetenrTdlaplr.tlvttlpoparaeaxhrytrusletnnhhsedeahnrrleeltadoblofle.blp-leo.F'cfocoot'orhlttPllyetlreiap9cccer9ettterJmtpad-riv.ula1octsen, or contribLttion collectecl"' pcineessntotaalv(hpon1Tse.l0nr(Pe0t )0rpa.o4atn0ey)om"uffieDo"nhrSnti*Tootohn.tenrca,p,on,r,nen.,tvuraiaoirtct.itaets spprlarr.tar'etostrobtfelRJ'efZrlnv"Oetintint:)cl,OYroercaerfsiny'aeta:ccv:tli:ofol:s"nlo"a(mPlt'0piFr'a2i;fr01ttyt)hceaerrleeltoanfv.ooowsf (tPthae0x.ep5dr0e)tantotiuoFmnoerotlr' [,I}R,OAU OF INIIRNAT REVENI,E :40 idCOMS MGT. DTYTSION to A. t4, JAN 15 20 R.ECEI Y" ,t#fio'go^

Ravenue Regulolions lt'lo. _ Page 5 of9 SEC. 12. NEW RATB OF DST ON CERTIFICATES. - "SEC. 188. Slnrp Tax on ('ertificutes. - On each cerlificate of damage ot'otherrvise. and on every other certificate or clocrurent issued b1, any cLlstorrs officer'^ mat'ine sllrveyor. ol other pelson acting as sr-rch. and on eacli certificate issLrecl by a notar), pLrblic, and on each celtificate o1'arry description reqLrired by lau, or by rules or regulations o1' a public office. or which is lssLred for the purpose of giving infbrrration. or establishing proolof a fact. and not otherwise specified herein. there shall be collected a docurrentary stan.lp tax of Thirty pesos (P30.00)." The rate of DST on cefiificates has been increased fi'oni Fifteen pesos (P15.00) to Thirtl, pesos (P30.00). SEC. 13. NEW RATE OF DST ON WAREHOUSE RECEIPTS. - - "SEC. it89. Stantp l"qx on trl/at'ehctusa Receipls. On each warehouse leceipt for propefiy held in storage in a pLrblic or private r,varehouse or yard fbr any person othet' than the proprietor of such warehoLrse or yald. there shall be collected a documentary starnp tax of Thirty pesos (P30.00): Provided, Thqt tro tax shall be collected on each r,varehouse receipt issLred to any one person in any one calendar n.ronth coverill,, properly the value of rvhich does uot exceed Tr.vo hundred pesos (P200)." The rate of DST ori warehouse receipts has been increased fi'orn Fifteen pesos (P I 5.00) 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. Stantp Tax ou ,Jai-alai, Horse Race, Tickets. Lotto, ot' Olher Aulhorized - Ntunbers Gantes. On each jai-alai, horse race ticket, lotto. ot' othet' authorized nuurbers garres. there shall be collected a documentary stamp tax of Twenty centavos (P0.20): Provicled, Thqt if the cost of the ticket exceed Or"re peso (P1.00), an additional tax of Twenty centavos (P0.20) ou every One peso (P1.00), or fi'actional parl thereof, shall be collected." The rate of DST orr .iai-alai. horse race. tickets, lotto, or other aLrthorized number game has been increased fi'orr Ten centavos (P0.10) to Trventy centavos (P0.20); and if the cost of ticket exceeds One peso (P1.00), the additional tax has bee:r increased fl'orn Ten centavos (P0.10) to Tr,venty centavos (P0.20) on every One peso (P1.00). or fractional parl thereof. SEC. 15. NEW RATE OF DST ON BILLS OF LADING OR RECEIPTS - "SEC. lgl. stcuttlt Tctx cn Bills o/"Lading ot' Receipts. - On each set of bills of lading or receipts (except charlel parly)for any goods. rnerchandise, or effects shipped fi'orn one porl or place in the Philippines (except on lerries across rivers). or to any foreign poft. there shall be collected a documentary stamp tax of Two pesos (P2,00). if the value ofsuch goods exceeds One hurrdled pesos (P100) and does not exceed One thousand pesos (P1.000); Twenty pesos (P20.00). if the value exceeds One thousand pesos (P1 .00A): Prot,idecl, hott'ever, That fi'eight tickets covering goods. tnerchandise F,LrllEAU 0l l}mnilAl !t[W,t{-tlD W, ICOAOB fYtCT, DIlttlON tD:4D /4' l'4' JAN t52016.11 rlE.'EhFaf,.rrpar- Lh/U4/^ -/*.4L .&L,.L- U & e

_ Reventie Regulations Nn Page 6 of9 or effects carlied as accolrpaniecl baggage of passengels on land and vvatet' cat'riers prinrarily engaged in the tlansportatiott of passettgers are het'eb1' exempt." The rate o1'DST on each bill of lading or receipl has been increased from Olre peso (P1.00) to Two pesos (P2.00). if the value of goods exceeds One liundred pesos (P100) and does not exceed One thousand pesos (P1.000): arrd the rate of DST has beett increased il'orn T'en pesos (P10.00) to Twentl,pesos (P20.00). if the value of goods exceeds One thousand pesos (P 1,000). SEC. 16. NEW RATE OF DST ON PROXIES. - - "SEC. 192. Stamp Tux on Proxies. On each proxy lol voting at any election of olficers of any colrpany ol association. Or lbr any other plrrpose. except proxies issued affecting the affairs of associations or corpol'ations ot'ganized fbl religioLrs, charitable. or literarl,purposes. there shall be collected a docurnentary starnp tax of Thirty pesos (P30.00)." The rate of DST on each proxy has been increased frorn Fifieen pesos (Pl5.00) to Thirty pesos (P30.00). SEC. 17. NEW RATE OF DST ON POWERS OF ATTORNEY. - - "SEC. 193. Stamp Tax on Powers of'Attorne.1t. On each power of attorney to perform any act whatsoever', except acts conuected witlr the collection of claims due f}om or accruing to the Govemrrellt of the RepLrblic of the Philippines, or the govelrlxent of any province, city or rnunicipality, there shall be collected a documentary stamp tax of Ten pesos (P 10.00)." The rate of DST on each power of attorney has been increased frorn Five pesos (P5.00) to Ten pesos (P I 0.00). SEC. 18. NEW RATE OF DST ON LEASES AND OTHER HIRTNG AGREBMENTS. - - "SEC. 194. Stuntp Tar on Leases ctncl Olltcr Hiring tlgreentcnls. On eaclt lease. agreetnelrt. rnernolandum. or contracl for hire, Llse or rent of an1, lands or teneurents. or portions theleof. tltere shall be collected a docuurentaly stamp tax of Six pesos (P6.00) fbr the fir'st Two thousand pesos (P2.000). or fi'actional part theleof, and arr additional Two pesos (P2.00) for every One tlrousand pesos (P1.000) or fractiottal parl thereof. in excess of the first Two thousand pesos (P2,000) lor each year of the term of said contract or agreetnetrt." The rate of DST on leases and other hiring agreelxents has been increasecl fi'om Three pesos (P3.00) to Six pesos (P6.00.; for:the first Trvo thousancl pesos (P2,000). or fractional part thereoft and tlie additional tax r,vas increased frorn One peso (PL00) to Two pesos (P2.00) for every One thousand pesos (P1,000) or fi'actional part thereof, in excess of the first Two tlrousand pesos (P2,000). SEC. 19. NEW RATE OF DST ON MORTGAGES, PLEDGES, AND DEEDS OF TRUST - V EUBNAU OF II{TERNAL REYts{UE M. ITEORI}S MGT, DrYISION tD:40 A. fu, JAN l5 20lE!,u/1r,* T'iT I}aB, aEj ' C E TY

_ Revenue Regulalicuts No. Page 7 of9 "SECTION'195. Slatnp Tar on lvfortgcrges, Pleclges, und Dceds o/'Tt'usl. - Ou every ntortgage or pledge of lands. estate, or propefiy. real or personal, helitable or rnovable. whatsoever'. vvhere the same shall be made as a secr-rlity for the paynrent o{' any definite ancl certain sr.rnr of nroney lent at the time ol previously due and owirtg or lolbolne to be paid. being payable. and on auy conveyance of land, estate. or' property rvliatsoever'. in tnrst or to be sold, or otheln,ise cclnverted into inoney rvlrich shall be and intended only as seculity. either by express stipulation or otherwise. there shall collected a docurnentary starnp tax at the fbllowing rales: (a) When the arroLrnt seculed does not exceed Five thousand pesos (P5.000). Forly pesos (P40.00). (b) On each Five thousand pesos (P5.000). or fiactional part thereof in excess o1'Five thousand pesos (P5.000). an additional tax of Trventy pesos P20.00. xxx" The rate of DST on every mortgage, pledge, or deed of trLrst has been increased fl'orn Twenty pesos (P20.00) to Forty pesos (P40.00), rvhen arrount secured does trot 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 parl 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 lox on Deeds of' Sole, Convqtcmces qnd Datqtions o/' Real Properqt. - On a[1 col.]veyances. donatior.rs, deeds. instrurnents, or rvritings. other than grants, patents or original cefiificates of adjudication issued by tlie government. whereby any land, tellernent, or other realty sold shall be grauted. assigned. transferled. donated ol otherwise conveyed to the purchaser^ or purchasers, or to arry other person ol persons designated by sLrch purchaser or purchasers, or donee. there shall be collected a docurnentary stamp tax. at tlie rates herein below prescribed. based on the consideration contracted to be paid for such lealty or on its fair nrarket value detenlrined in accordance r,vith Sectiorr 6(E) of this Code, whiclrever is higher: Provided. That wlien one olthe contractine parlies is the Covernurent the tax lrereirr imposed shall be based on the actual consideration. (a) When the consideration, or" value received or contracted to be paid for sLrch realty. afiel rnakrng proper allowarrce ol auy encurrbrance. does not exceed One thousand pesos (P I ,000). Fifteen pesos (P I 5.00). (b) For each additional One thousand pesos (P1.000) or fi'actional part thereof in excess of Otte thousatid pesos (P1.000) of such consideration ol value, Fifteen pesos (P 15.00)). Transfers exerxpt from donor's tax under Section 101 (a) ancl (b) of this Cocle shall be exempt fi'orn the tax imposed Lrnder this section. When it appears that the arnoLlnt olthe docurnentar)'starnp tax payable lrereunder has been reduced b.y an irrcot'r'ect staternent olthe consideralion in an1, conveyance. deed. instrurrent or rvriting sr-rbject to such tax the Cornmissioner. provincial or city TreasLrrer'. or other revel.]ue officer slrali. fi'om the assessrrent rolls ol other reliable EIfiIAU 0l f\ryER\lAL BEl,mflIE W, " ITECORO$ frTGT. DAIV.ItStI,GN lD:4P JAN 15 208 ft E-FEVil_'Il_'no

_ Reventre Regulalions Nn. Page 8 ol9 sollrce of inforrnatiou. assess the properly ol' its true nrarket value and collect the proper tax thereort." Donations of real property slrall rrorry be subject to DST r.rnder the amelrded Section 196. Horvever. the fbllowing donations or gifts exempt Il'onr donor's titx ulrderSection l0l (A) and (B) shall be exernpt fi'om DST: (A) In the Casa oJ Gi/is t\ludc b), tt Rc,vident (l) Gifts made to or for the use of the National Covernrnent or anv errtitv created bt any of its agencies whioh is not conducted fbr profit. or to anv political sLrbdivision o1' the said Governrnent: and (2) Gifts iu favor o[' an educational and/or charitable, religious. cultural or social welfare corporation. institirtiorr. accredited nongovernlnent organizatiotl. trLlst or philanthropic organization or research institution clr organization: Provided, however, That not more than thirty percent (30%) of said gifts shall be used by such donee for adrninistration purposes. For the pLrrpose of this exemption, a 'non-profit edircational and/or charitable corporation. institLrtion, accredited nongovernl-r'lent organizatiorr. trust or philanthropic organization and/or research institLrtion or organization' is a school, college or universitl, and/or charitable corporatior-r, accredited nongovernment organization, trust or philanthropic organizatiorr and/or research institution or organizatiorr. incorporated as a non-stocli entity, paying rro dividends, governed by trustees who receive no cornpensation, and devoting all its irrcorne, whether students' fees or gifts, donation, subsidies or other forms of philanthropy, to tlre accornplishment and promotion of the purposes enumerated irr its Articles of Incorporation. (B) In the Co.ye qf Gi.fts Made by u Nonre.yident nol a Citizen o./'the Philipltine,s (l) Gifts rnade to or lor the use of the National Government or any errtity created b1, any of its agencies rvhich is not conducted for profit, or to any political subdivision of tlre said Governrnent. (2) Gifts in favor of an educational and/or charitable. religious, cultural or social welfare corporation, institution, foundation. trust or philanthropic organization or research irrstitution or organization'. Prot,idad, howet,er, That not rnore than thirty percent (30%) of said gifts shall be Lrsed by sLrch donee for adrninistration purposes. SEC. 21. NEW RATE OF DST ON CHARTER PARTIES AND SIMILAR INSTRUMENTS., - "SEC. 197. Stutrtp TtL\ ttn ('lrr,,'itr','Purlie.s cutcl Sintilcrr In.stt'untet'tts. On evely chafter par1y. contract or agreelrent Jbr tlie charler of any ship. vessel or stl'earner, or any letter or mernolartdum or other writing between the captairr. rnaster or owner'. or otlrel person acting as agent of any ship. vessel or stearxer. and an.v othel pelson or persons lbr or relatirrg to the cirafter of any such ship. vessel or streamer. and on any rener.val or tt'ansfer of such charter. contract. agreenrent. letter ol rnernorandurn. there shall be collected a clocunrentar)'stamp tax at the follovving rates: \f ElIfiEAU OT INTEBNAI, BE|VTNITE ({ RECORDS MGT. DTVISION JA/DN:Il45)DlUAAlI.E614rl,-t klh*" 1i,1f, rEr( f^-r FI(rFBvY1Er{r'eFPl !t(/

_ Revenue Regulatiotls Nn. Page 9 of9 (a) lf the registered gross tonnage ol the ship, vessel or stearner does not exceed one thousand (1.000) tons. and the duration ofthe charter or coutl'act doesnot exceed six (6) months, One thousand pesos (P1.000); and for each month or fiaction of a uronth in excess of six (6) months. an additional tax of One hundred pesos (P I 00.00) shall be paid. (b) Ifthelegisteredgrosstonnageexceedsorrethousand(1.000)tonsandcloesnot exceed ten thousand ( I 0.000) tons. and the dLrratiorr of tlre chartel or contract does not exceed six (6) rnonths. Tlvo thor-rsand pesos (P2,000); arrd fbr each rronth ol' fraction ola nronth in excess of six (6) months. an additional tax of Tr,vo hundted pesos (P200.00) shall be paid. (c) lf the registeled gloss tonnage exceeds ten thousand ( 1 0.000) tons and the duration ofthe charter or contract does not exceed six (6) nionths. Tirlee thousand pesos (P3,000); and lor each rnonth or fraction of a rronth in excess of six (6) months. an additional tax of Three hundrecl pesos (P300.00) shall be paid." The rates of DST on charter parties aud similar instruments have beeu doubled. SEC.22. REPEALING CLAUSE. -All existing rules and regulations or parls thereol, which are inconsistent with the provisions of these regulations, are herebv repealed, amended or modified accordingly. SEC. 23. SEPARABILITY CLAUSE. - If any clause, serlterlce, provision or section of these Rules shall be held invalid or unconstitutional, the rernaining parts thereof shall notbe affected thereby. SEC. 24. EFFECTMTY. - These regr.rlations shall take effecl after fifteen ( I 5) davs following pLrblication in the Official Gazette or a newspaper of general circulation, rvhichever cornes first. Recommend i ng Approval : CARLOS G. DOI\fi}T JEZ Secretary ofFinance Itr^^ay*'v -/ CAESAR R. DULAY iAil 1 1 2018 ' 012459 Commissioner of Internal Revenue B*IE!4U- gF INTERNAL BF.I,U{IJE BIR IRwRR Draliing ancl Inrltlenrentation Corrntittee ITECORDS McT. UfytStOn /o:4o I . 14, \ffi JAN 15 20tE /+ RECE