Via ODiSy March 22, 2012 PHILIPPINE STOCK EXCHANGE ... - BDO

- 124 -27.04 Gross Receipts Tax (GRT)/ Value-added Tax (VAT)Beginning January 1, 2003, the imposition of VAT on banks and financial institutionsbecame effective pursuant to the provisions of RA No. 9010. The Parent Bank andBDO Private became subject to VAT based on their gross receipts, in lieu of the GRTunder Sections 121 and 122 of the Tax Code which was imposed on banks, non-bankfinancial intermediaries and finance companies in prior years.However, on January 29, 2004, RA No. 9238 reverted the imposition of GRT on banksand financial institutions.On May 24, 2005, the amendments on RA No. 9337 was approved amending, amongothers, the gross GRT on royalties, rentals of property, real or personal, profits fromexchange and on net trading gains within the taxable year on foreign currency, debtsecurities, derivatives and other similar financial instruments from 5% to 7% effectiveNovember 1, 2005.27.05 Documentary Stamp Tax (DST)Documentary stamp taxes (at varying rates) are imposed on the following:(a) Bank checks, drafts, or certificate of deposit not bearing interest, and otherinstruments;(b) Bonds, loan agreements, promissory notes, bills of exchange, drafts, instrumentsand securities issued by the Government or any of its instrumentalities, depositsubstitute debt instruments, certificates of deposits bearing interest and other notpayable on sight or demand;(c) Acceptance of bills of exchange and letters of credit; and,(d) Bills of lading or receipt.On February 7, 2004, RA No. 9243 was passed amending the rates of DST, thesignificant provisions of which are summarized below.(a) On every issue of debt instruments, there shall be collected a DST of one peso oneach two hundred pesos or fractional part thereof of the issue price of any suchdebt instrument. Provided, that for such debt instruments with terms of less thanone year, the DST to be collected shall be of a proportional amount in accordancewith the ratio of its term in number of days to 365 days. Provided further that onlyone DST shall be imposed on either loan agreement or promissory notes to securesuch loan.(b) On all sales or transfer of shares or certificates of stock in any corporation, thereshall be collected a DST of 75 centavos on each two hundred pesos, or fractionalpart thereof, of the par value of such stock.(c) On all bills of exchange or drafts, there shall be collected a DST of 30 centavos oneach two hundred pesos, or fractional part thereof, of the face value of any such billof exchange or draft.