Tax Notes

DST on original issue of sharesof stocks for new corporations

THE Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) 56-2019 on March 29, 2019 to align and unify the imposition of late penalties on the payment of documentary stamp tax (DST) on the original issue of shares of stocks of new corporations.

The deadline for filing DST is five days after the close of the month when the taxable document was made, signed, issued, accepted, or transferred or upon remittance by revenue collection agents of collection from the sale of loose documentary stamps, through the monthly documentary stamp tax declaration/return (BIR Form 2000 v. January 2018) 

RMC 56-2019 further clarified that for new corporations, the reckoning period for filing is within five days after the close of the month of the date of registration with the Securities and Exchange Commission, as shown in the certificate of incorporation, certificate of recording or license to do business in the Philippines.

The penalty for late payment (i.e., 12 percent interest, 25 percent surcharge and compromise penalty) of DST on the original issue of shares of stocks will accrue, if paid beyond the due date.

Please be guided accordingly.

SOURCE:

P&A GRANT THORNTON


Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton

International Ltd.

 

As published in SunStar Cebu, dated 04 June 2019