(Revenue Regulations No. 24-2020 published on October 02, 2020)
This Tax Alert is issued to inform all concerned on the exemption from documentary stamp tax (DST) of loan term extensions or credit restructuring pursuant to Bayanihan to Recover as One Act (Republic Act No. 11494) or the Bayanihan II.
Section 4 (uu) of Bayanihan II directs lenders to implement a one-time sixty (60)-day grace period for the payment of all existing, current and outstanding loans falling due, or any part thereof, on or before December 31, 2020.
The extensions of the maturity periods pursuant to the above relief shall be exempt from documentary stamp tax (DST). The DST exemption shall also apply on credit restructuring, micro-lending including those obtained from pawnshops, and extensions thereof, made on or before December 31, 2020.
Interbank loans and bank borrowings with maturity period of at least seven (7) days are not covered by the DST exemption.
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