#AskTheTaxWhiz: How the TRAIN law affects documentary stamp tax

Official documents often require documentary stamps and the taxes imposed on these were changed under the Tax Reform for Acceleration and Inclusion (TRAIN) law. What are the new tax rates?

The documentary stamp tax (DST) imposes a rate that is dependent on the value of the transaction. Several types of business transactions are required to have documentary stamps. For example, the original issuance of shares is subject to a DST of P2 for every P200 of the share's value.

Under the TRAIN law, several DST rates have either doubled or increased. Previously, Deeds of Donation of Real Property were not subject to DST, but this was imposed a tax rate under the TRAIN law.

How do I pay the DST? What forms should I use?

The Bureau of Internal Revenue (BIR) recently released the form to be used when paying for DST. According to Revenue Memorandum Circular No. 88-2018, the revised BIR Form No. 2000 (Monthly Documentary Stamp Tax Declaration/Return) is now available for manual filers. For users of the Electronic Filing and Payment System (eFPS) and eBIRForms, the revised form is not yet available. Users of the electronic platforms (eFPS and eBIRForms) will still use the old BIR Form No. 2000.

The BIR previously released Revenue Memorandum Circular No. 3-2018 which prescribes the methods of filing DST using the old form.

Using the wrong form could cause unnecessary trouble for taxpayers. To avoid these, taxpayers need to keep themselves up to date with the constant issuances of the BIR. Attending tax seminars is a good way of receiving comprehensive information on tax updates. However, larger tax seminars often do not leave space for interactive discussion. More exclusive tax coaching will be best suited to answering specific questions.

The Asian Consulting Group helps taxpayers get rid of their BIR problems the right way. To learn how you can do so as well, simply visit here. For inquiries, you can reach us at consult@acg.ph or 622-7720. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2017 Outstanding Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) as well as the Center for Strategic Reforms of the Philippines (CSR Philippines). You may email him at consult@acg.ph or visit www.acg.ph for tax-related concerns.