BIR Declares Exemption from Documentary Stamp Tax for Loan Relief in the Philippines
The Bureau of Internal Revenue (BIR) releases Revenue Memorandum Circular (RMC) No. 35-2020, pursuant to Revenue Regulations (RR) No. 8-2020, declaring exemption from Documentary Stamp Tax (DST) as a relief for payment of loans.
Under RMC No. 35-2020, the following shall not impose a DST for credit extensions and restructuring, micro-lending, and those obtained from pawnshops in extending the grace period for all loan payments:
- All banks
- Financing companies
- Lending companies
- Financial institutions (public and private)
- Pag-IBIG Fund