RMC No. 03-2018 — Provides the transition procedures for all taxpayers affected by the revised tax rates on Documentary Stamp Tax pursuant to the provisions of RA No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law) Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE January 4, 2018 REVENUE MEMORANDUM CIRCULAR NO. 3-2018 SUBJECT : Transition Procedures for All Taxpayers Affected by the Revised Tax Rates on Documentary Stamp Tax Pursuant to the Provisions of Republic Act (RA) No. 10963, Otherwise Known as the Tax Reform for Acceleration and Inclusion (TRAIN) TO : All Internal Revenue Officials, Employees and Others Concerned This Circular is issued to provide transition procedures for all taxpayers who are affected in filing the documentary stamp tax returns (BIR Form Nos. 2000 and 2000-OT) due to the revised tax rates pursuant to the provisions of RA NO. 10963. The abovementioned BIR forms are being enhanced and the Alphanumeric Tax Codes (ATCs) affected by the increase in tax rates are as follows: BIR Form Form Name ATC Affected Changes in Tax No. Rate Documentary Stamp Tax DS 101, 102, 104 1. 2000 Increase in the Declaration/Return to 109, 112, 114 tax rate is 100% 2. 2000-OT to 121, 125, 126, except for DS 106, which is 130 to 132 50% only Documentary Stamp Tax DS 102 and 125 Increase in the Declaration/Return � tax rate is 100% One Time Transactions The changes in tax rates mentioned above are not yet reflected and implemented in the following: 1. Electronic Filing and Payment System (eFPS) 2. Electronic Bureau of Internal Revenue Forms (eBIRForms); and 3. Manual Forms thus, the following work around procedures in filing the BIR Form/Return mentioned above shall be adopted by the following taxpayers: 1. eFPS Filers of BIR Form No. 2000 shall - a) Use the existing BIR form in the eFPS; b) Fill in the required information (e.g., date of transactions, parties to the transactions, etc.); c) Click and choose the applicable ATC, nature of transaction, tax rate and tax due will automatically appear; d) Change the amount of tax due computed by the system with the correct amount using the new tax rate as follows:

ATC Description New Tax Rate a. DS 101 Original issue of Shares of Stocks P 2.00/200 b. DS 102 Sales, Agreements to Sell, Memoranda of Sales, Deliveries P 1.50/200 c. DS 125 or Transfer of Shares or Certificates of Stock with par value d. DS 104 In case of stock without par value 50% of DST paid on original e. DS 105 issue f. DS 106 Certificates of Profits or Interest in Property or Accumulations P 1.00/200 g. DS 107 Bank Checks, Drafts, Certificates of Deposit not Bearing h. DS 108 Interest and Other Instruments P 3.00 i. DS 109 Original Issue of All Debt Instruments P 1.50/200 of issue price or j. DS 112 Acceptance of Bills of Exchange or Order drawn in a Foreign a fraction of 365 days for Country but payable in the Philippines instrument with term of Foreign Bills of Exchange and Letters of Credit Life Insurance Policies amount: less than 1 year Does not exceed p 100,000 P 0.60/200 Exceeds P 100,000 but does not exceed P 300,000 Exceeds P 300,000 but does not exceed P 500,000 P 0.60/200 Exceeds P 500,000 but does not exceed P 750,000 Exceeds P 750,000 but does not exceed P 1,000,000 Exempt Exceeds P 1,000,000 P 20.00 Policies of Annuities P 50.00 P 100.00 P 150.00 P 200.00 P 1.00/200 of the premium or installment payment on contract price collected Pre-Need Plans P 0.40/200 of the premium or contribution collected k. DS 114 Certificates (Sec. 188 of the Tax Code) l. DS 115 Warehouse Receipts P 30.00 P 30.00 with value above m. DS 116 Jai-alai, Horse Race Tickets, Lotto or Other Authorized n. DS 117 Number Games 200 Bills of Lading or Receipts P 0.20/P 1.00 P 100.00 to P 1,000 P 2.00 Above P 1,000 P20.00 o. DS 118 Proxies for voting at any election P 30.00 p. DS 119 Powers of Attorney q. DS 120 Leases and Other Hiring Agreements P 10.00 1st P2,000 P 6.00 In excess ( P 2.00/P 1,000) r. DS 121 Mortgages, Pledges and Deeds of Trust 1st p 5,000 P 40.00 In excess (P 20.00/P 5,000) s. DS 126 Bills of Exchange or Drafts P 0.60 on each P 200 t. DS 130 Charter Parties and Similar Instruments if gross tonnage of 1st 6 months P 1,000 the ship, vessel or steamer is: In excess + P 100 1,000 tons and below u. DS 131 1,001 to 10,000 tons 1st 6 months P 2,000 In excess + P 200 v. DS 132 Over 10,000 tons 1st 6 months P 3,000 In excess + P 300 e) File the return then proceed to payment and pay the corrected tax due thereon.

2. eBIRForms Users/Filers of BIR Form Nos. 2000 and/or 2000-OT shall� 1. File online using the existing BIR form in the eBIRForms Package then pay the corresponding taxes due thereon via: a) Online payment thru Gcash, Landbank Electronic Payment Service (LBEPS) or BIR-DBP PayTax Online (BDPTO); or b) Manual payment via over-the-counter (OTC) of Authorized Agent Banks (AABs) under the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered. 2. The above transactions will result to deficiency tax, and to cover the deficiency tax, eBIRForms users/filers shall likewise file online and pay online, thru GCash, LBEPS or BDPTO, or pay manually via OTC of AABs under the jurisdiction of the RDO where the taxpayer is registered, the deficiency tax using BIR Form No. 0605 and fill in the corresponding information in the Tax Type and ATC fields stated below in lieu of the correct BIR form that should have been used: Supposed BIR Form Tax Type ATC to be Used All eBIRForms filers shall use 1. 2000 DS Documentary Stamp Tax ATC MC 031 � Deficiency Tax 2. 2000-OT DO Documentary Stamp Tax � One Time 3. Manual Filers of BIR Form Nos. 2000 and/or 2000-OT shall � 1. Fill-in the applicable BIR form [pre-printed or downloaded form in BIR website (www.bir.gov.ph) under the BIR Forms section of the website] using the new tax rates then compute the tax due thereon. 2. File and pay manually via OTC of AABs under the jurisdiction of the RDO where the taxpayer is registered. All concerned taxpayers shall be responsible in ensuring that the correct tax due is being declared and paid for accordingly. Any deficiency taxes that will be discovered in the validation/audit process shall be subjected to all applicable penalties incident thereto in accordance with existing rules and regulations. All concerned are hereby enjoined to be guided accordingly and give this Circular as wide a publicity as possible. (Original Signed) CAESAR R. DULAY Commissioner of Internal Revenue