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Documentary Stamp Tax
RESAR on Apr 23 2009 | Filed under: Real Estate Seminar Tips
Here are some quick notes about the Documentary Stamp Tax or DST:
- Accrues only upon FULL payment.
- DST on Sale = 1.5% of Tax Base
- DST on Mortgage
- Look at the amount of the mortgage.
- P20 for the first P5,000
- P10 for every P5,000 (or a fraction thereof) of the remaining amount of the mortgage (after you deduct the first P5,000)
- Still searching my notes…
Tax Base = compare the Selling Price, the Fair Market Value (as listed in the Tax Declaration Form prepared by the Assessor’s Office), and the Zonal Values of the BIR (pertains to the Land). Get the maximum amount. That’s the Tax Base.
Other Notes
- Since there is no payment in a Donation, there is no DST.
- Since there is no full payment yet in the early stages of an Installment Sale, you don’t compute for DST… yet.
When should you pay the DST?
You’ll find the answer in Tax Payment Due Dates
here’s how … bank computes doc stamp on our loan
Loan amount P1,023,900.00
term: 183 days
they computed DST as:
P1,023,900.00 x .005 x 183/365.
Is it correct?
Thank you very much!
Anyway, please ask your loan officer their basis for computing DST that way. Specifically, why are they multiplying the P1,023,900 by 0.5 percent instead of 0.15 percent.
Thanks!