Philippines Court of Tax Appeals Issues Decision Clarifying Stamp Tax Treatment on Loan Agreement

The Philippine Court of Tax Appeals Nov. 4 issued a decision for Case No. 9919, denying a refund for documentary stamp taxes (DST) paid by a corporation on a loan agreement. A corporation entered into a loan with an international finance corporation (IFC), and filed an administrative claim for a refund of allegedly erroneously paid DST related to the loan. The Commissioner of Internal Revenue denied the claim, arguing that the corporation failed to prove that it was entitled to the immunities and privileges of the transaction entered into with the IFC. The Court of Tax Appeals rejected the corporation’s ...