eDST Clarified

Filing and payment of documentary stamp tax (DST) will now be thru the internet or the so-called eDST system via BIR website.

The BIR elucidated that there will be no more further extension of the full implementation of the eDST System.

The deadline in filing DST returns and payment of the taxes should be any time between the actual dates of the transaction (i.e. making, signing, accepting or transferring of documents) up to the 5^th day of the succeeding month.

ATC and DST computation are as follows:

ATC is DS 106 for Tiered Deposits. All debt instruments are subject to DST of One peso (P1.00) on each Two Hundred (P200.00) or fractional part thereof, of the issue price of any such debt instrument.

If the term of the instrument is less than one (1) year, the DST is computed by taking into consideration the number of days that the instrument is outstanding as a fraction of 265 days, DST computation is as follows:

DST = Issue price/200 x P1.00 x term/365 (rounded off to the nearest centavo)

If the debt instrument has a term of one (1) year or longer, the DST due shall be computed based on the issue price of the debt instrument, as follows:

DST = Issue price/P200 x P1.00

For Foreign Dollar or 3^rd currency Telegraphic Transfer (Peso Paid), Local Peso Telegraphic transfer (PDDTS or GSRT) and Local Dollar Telegraphic Transfer (Peso Paid GSRT):

Foreign Dollar or 3rd currency Telegraphic Transfer (Peso Paid)	Section 182 of NIRC	DS108	Foreign Bills or Letters of Credit	P0.30 for every P200
Local Peso Telegraphic transfer (PDDTS or GSRT)	Section 180 of NIRC	DS126	Bills of Exchange or Drafts	P0.30 for every P200
Local Dollar Telegraphic Transfer (Peso Paid GSRT)	Section 181 of NIRC	DS126	Bills of Exchange or Drafts	P0.30 for every P200

The DSTs due on the above fund transfers are not computed based on the fixed rate of P1.50 per transaction imposed on “bank checks, drafts, certificates of deposits not bearing interest and other instruments” under Section 178 of the Tax Code but based on the values of the fund transfers under Sections 180, 181 and 182 of the same Code.

Dollar denominated telegraphic transfer shall be translated to the local currency by using the prevailing exchange rate at the Philippine Dealing System (PDS) at the time of the acceptance of the Bill or Exchange or Draft.

Further, computation of the DST in the eDST System is based on the formula indicated in the Tax Code. Fractional part of the tax base is also considered and the system computes the DST by rounding off first before multiplying by the DST rate and term.

If Principal is Php 366,755.00, the DST rate is 1/200 and the term is 30 days, DST will be computed as follows:

Php 366,755.00/200=1,833.775 rounded to 1,834 then multiplied by the tax rate and term=1,834 x 1.0 x 30/365

       = P150.739 = P 150.74

(Revenue Memorandum Circular No. 24-2011, May 16, 2011)