Documentary Stamp Tax (DST) in the Philippines: What It Is and the Rates

Documentary Stamp Tax (DST) is an excise tax levied on documents, instruments, loan agreements, and papers that evidence the acceptance, assignment, sale, or transfer of an obligation, right, or property. It is imposed under Title VII (Sections 173 to 201) of the National Internal Revenue Code (NIRC), as amended. The tax attaches to the transaction the document represents, not to the paper itself.

DST applies to a wide range of everyday business and financial documents: deeds of sale of real property, original issuances and transfers of shares of stock, loan agreements and promissory notes, lease contracts, mortgages, insurance policies, bank checks, certificates, and powers of attorney. If a transaction is reduced to a document and falls within one of the enumerated sections, DST is generally due.

Liability is joint and several. Under Section 173, whenever one party to a taxable document is exempt, the other non-exempt party becomes directly liable for the full DST. In practice the parties usually agree by contract who shoulders the cost, but the BIR can collect from either signatory regardless of that private arrangement.

DST is computed on a per-document basis using the rates fixed in Sections 174 to 201 of the NIRC. The TRAIN Law (RA 10963, effective 2018) roughly doubled most rates, and the Capital Markets Efficiency Promotion Act or CMEPA (RA 12214, effective 1 July 2025) further revised the rates on shares and debt instruments. The table below states the rates in force for 2026.

Two computation styles appear throughout DST. Some items use a fixed peso amount per ₱200 (or fraction) of value; others use a percentage of value. CMEPA recast the share-issuance and debt-instrument rates as 0.75% of value, which is the same arithmetic as the old ₱1.50-per-₱200 brackets for debt but a reduction for newly issued shares.

DST is mechanical once you identify the correct section and tax base. The base is usually par value, issue price, consideration, or fair market value, and "fraction" rules mean you round the value bracket up before multiplying.

Real property: A condominium sells for ₱4,000,000 but its zonal/FMV is ₱4,200,000. DST under Sec. 196 uses the higher base (₱4,200,000) at ₱15 per ₱1,000: 4,200 brackets × ₱15 = ₱63,000.

Shares (original issue): A corporation issues new shares with ₱2,000,000 par value. Under the CMEPA rate of 0.75%, DST = ₱2,000,000 × 0.0075 = ₱15,000. Under the old ₱2-per-₱200 rate this would have been ₱20,000, so CMEPA reduced the cost.

Lease: A 3-year commercial lease at ₱600,000 total rent. DST under Sec. 194 is computed once on the aggregate rent over the whole term: ₱6 (first ₱2,000) plus ₱2 per ₱1,000 of the remaining ₱598,000 = ₱6 + ₱1,196 = ₱1,202 for the entire lease. You do not multiply by the number of years — the per-year rentals are already summed into the ₱600,000 base.

Loan: A ₱5,000,000 one-year term loan. DST under Sec. 179 at 0.75% = ₱37,500. For instruments with a term shorter than one year, DST on debt instruments is prorated based on the actual number of days.

DST is declared and paid using two BIR returns. BIR Form 2000 (Documentary Stamp Tax Declaration/Return) is used for recurring or constructive affixture by taxpayers who routinely issue taxable documents. BIR Form 2000-OT is the one-time transactions version, used for isolated events such as a single deed of sale of real property or a one-off share transfer.

Most DST is now paid through the BIR's electronic Documentary Stamp Tax (eDST) System or via electronic filing and payment, rather than by physically affixing and cancelling adhesive stamps. The eDST system imprints a secure stamp and remits the tax, which is why the form is described as covering the "constructive" affixture of stamps.

Where DST is a condition for registration, such as a deed of sale, the Registry of Deeds and the BIR's Certificate Authorizing Registration (CAR/eCAR) process will require proof that the DST has been filed and paid before title can transfer.

Which DST return to use

• BIR Form 2000 — regular/recurring DST and eDST users (e.g., banks, lenders, corporations issuing instruments).
• BIR Form 2000-OT — one-time transactions such as a single real-property deed of sale or a non-recurring share transfer.
• eDST System — online affixture and payment of the stamp for participating taxpayers.
• Authorized Agent Bank (AAB) / eFPS / eBIRForms — for filing and paying where eDST does not apply.

The general DST deadline is the 5th day of the month following the month in which the taxable document was made, signed, accepted, or transferred. So a deed signed any time in March is generally due on or before 5 April.

For one-time transactions filed on Form 2000-OT (commonly real-property deeds), DST is likewise filed and paid within five days after the close of the month of the transaction, and clearance of DST is a prerequisite to securing the eCAR.

Late or unpaid DST triggers the usual NIRC civil penalties: a 25% surcharge (50% if the failure is willful or fraudulent), 12% annual deficiency/delinquency interest, and a compromise penalty. Crucially, an unstamped or insufficiently stamped document is not admissible as evidence in court until the DST plus penalties are paid, which can stall litigation, registration, and financing.

Section 199 of the NIRC and several special laws exempt specific documents and parties from DST. CMEPA expanded the capital-market exemptions effective 1 July 2025.

Knowing the exemptions matters because of the joint-and-several rule: if one party is exempt, the other party must still pay the DST in full.

Frequently relied-upon DST exemptions

• Sale, exchange, or redemption of shares listed and traded through a local or foreign stock exchange (CMEPA).
• Original issuance, redemption, or sale of shares in mutual fund companies and units in UITFs (CMEPA).
• Borrowing and lending of securities under a duly approved securities-lending agreement.
• Loan agreements or promissory notes not exceeding ₱250,000 for personal use by an individual (Sec. 199).
• Certain transactions of cooperatives duly registered with the CDA, within prescribed limits.
• Bank deposit accounts without a fixed term or maturity (passbook savings), and certain interbank loans.