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    Date: 2023-07-12 15:58:28.216891

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Clarification of DST Payment on Amended Lease Contract

Requested from BIR by M. Parada at 03:58 PM on Jul 12, 2023.
Purpose: Compliance on BIR Regulations
Date of Coverage: 06/01/2023 - 07/12/2023
Tracking no: #BIR-990567781346

Parada 03:58 PM, Jul 12, 2023 

The Company entered into a lease agreement with the lessor. This contract was then amended due to a decrease in the leased premises. It was further amended but now, it was due to an increase in the leased premises. None of the contract terms were changed except the gross leasable area. DST on the original contract was paid and all documents were notarized (inc. amendments).

Our questions are:
1. Is the Company still required to pay the DST on the amendments?
2. Can the DST paid on the original contract be applied on the amendments?

Please provide regulations for this as further reference.

Parada 10:32 AM, Jul 14, 2023 

Good morning!

Just want to follow up my request thank you.


July 14, 2023

Dear Mr. Parada:

Greetings!

Thank you for your request dated Jul 12, 2023 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.

Your request

You asked for Clarification of DST Payment on Amended Lease Contract.

Response to your request

In reply, please be informed of Section 194 of the National Internal Revenue Code (NIRC) of 1997, As Amended:

SEC. 194 - Stamp Tax on Leases and Other Hiring Agreements - "On each lease, agreement, memorandum, or contract for hire, use or rent of any lands or tenements or portions thereof, there shall be collected a documentary stamp tax of Six pesos (P6.00) for the first Two Thousand pesos (P2,000), or fractional part thereof, and an additional Two pesos (P2.00) for every One thousand pesos (P1,000) or fractional part thereof, in excess of the first Two thousand pesos (P2,000) for each year of the term of said contract or agreement."

Kindly take note of the phrase "On each xx".

So if nag execute ng three (3) lease agreement, Three (3) times po ang payment ng DST. Di po pwedeng i apply yung binayad dun sa nauna since separate instruments sila kahit revision lang ung Two (2) na nahuli execute.

As to your Q1, DST is paid per deed or instrument exeuted and notarized; and
for Q2, the answer is NO po.

Thank you.

Respectfully yours,

FOI Receiving Officer
Public Information and Education Division

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