Philippines Tax Agency Clarifies Documentary Stamp Tax on Transfer of Shares

The Philippine Bureau of Internal Revenue Jan. 18 issued Revenue Memorandum Circular No. 6-2022, clarifying the documentary stamp tax rules for share transfers. The clarification includes specified share transfers that are subject to the documentary stamp tax, such as: 1) transfers pursuant to a deed of donation; 2) transfers pursuant to a will of a decedent approved by the probate court; and 3) transfers of shares from the decedent’s estate, where the heir has waived his share of the inheritance. The clarification further includes the application of a 1.50 Philippine peso (US$0.02) documentary stamp tax on each 200 pesos (US$3.89), ...