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We outline what corporations need to know about filing and paying DST in the Philippines!
Last updated on March 3, 2026
Documentary Stamp Tax (DST) is a Philippine tax regularly applied on the execution of certain transaction documents.
It commonly applies to transactions such as the issuance or sale of shares, execution of loan or debt agreements, and the sale or transfer of real property.
Depending on the transaction value, the DST due can be substantial. As a result, it directly impacts a company’s accounting, bookkeeping, and overall tax compliance obligations in the Philippines.
If you are an owner, founder, or manager entering into a transaction in the Philippines (or with a Philippine entity) it is important to assess any potential DST liabilities in advance.
To guide you, we’ve outlined below the key points corporations in the Philippines should understand about Documentary Stamp Tax (DST).
Documentary Stamp Tax (DST) applies to the execution of a wide range of transaction documents. Its legal basis is found under Title VII of the National Internal Revenue Code of 1997 (Tax Code of the Philippines), as amended. These provisions have been updated through various government issuances, most notably the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
In March 2018, the National Tax Research Center (NTRC), a research arm of the Department of Finance, released a paper outlining the changes to DST coverage and rates introduced under the TRAIN Law.
A DST liability generally arises when a transaction creates a right or obligation from Philippine sources, or when the property involved in the transaction is located in the Philippines.
Common corporate transactions subject to DST include:
For a detailed table of major documents subject to DST and the applicable rates, you may refer to our DST-Taxable Documents & Rates table.
DST rates are not the same across all transaction documents. The amount payable depends primarily on the type of transaction and document used and the value of the transaction reflected in the document.
Understanding DST Calculations
The method of calculating DST varies depending on the document type. Here are two common examples of how these rates are applied:
While our DST-Taxable Documents & Rates table highlights common taxable documents and their respective rates, you may refer to the official BIR DST Tax Rate Table for the full list. This official resource includes specific Tax Code sections, taxable units of value, and the exact tax due per unit.
Previously, the DST rate for an original issuance of shares by the company was 1% (₱2 for every ₱200 of par value).
Under BIR Revenue Regulations No. 19, Series of 2025, the DST rate for original issuance has been reduced to 0.75% (75% of 1%).
It is important to note that original issuance is different from a sale or transfer of shares, as the DST rate for sale or transfer remains at ₱1.50 per ₱200 of par value or fractional part thereof.
Here’s a sample scenario to understand how DST applies for this transaction:
An investor intends to purchase 100,000 shares of stock in the Philippine entity at their par value of ₱100 per share. The computation for the original issuance of stock in a company is computed on the basis of 75% of 1% (0.75%) of the par value of the shares issued.
In this example, the DST payable on the original issuance of 100,000 shares of stock at par value of ₱100 per share, is ₱75,000.00, computed as follows:
| Shares | Par Value per Share | Total Share Value | Tax Rate | Tax Due |
|---|---|---|---|---|
| 100,000 | ₱100 | ₱10,000,000 | 0.75% | ₱75,000.00 |
100,000 shares x ₱100 par value = ₱10,000,000 x 0.75% = ₱75,000.00
JKL Company sold a real property at a ₱5,800,000 valuation. Since the deed of sale is a taxable document, JKL must file and pay documentary stamp tax of ₱87,000.
| Component | Value | Taxable Units (per ₱1,000) | Tax Due Per Unit | Tax Due |
|---|---|---|---|---|
| First ₱1,000 | ₱1,000 | 1 | ₱15.00 | ₱15.00 |
| Excess of the first ₱1,000 | ₱5,799,000 | 5,799 | ₱15.00 | ₱86,985.00 |
| Total | ₱5,800,000 | 5,800 | ₱15.00 | ₱87,000.00 |
Even if the sale price was ₱5,799,001 (just one peso over the previous thousand), JKL Company would still pay the full ₱87,000.00.
The Rule: The law treats any amount over a thousand-peso mark as a full ₱1,000 unit. Whether your “excess” is ₱1.00 or ₱999.99, the BIR charges the same ₱15.00 for that specific “fractional part.”
Typically, the benefiting party (e.g., the issuer of shares or the seller of property) pays the DST, unless the parties agree otherwise. Before signing any transaction documents, it is important to confirm and agree on who will be responsible for paying and filing the DST.
Additionally, if one party is exempt from DST, the other non-exempt party will be solely liable for the tax.
Finally, if a transaction involves a foreign entity (e.g., an international investor), they must obtain a Tax Identification Number (TIN) to facilitate proper processing and recording of the transaction and DST filing with the BIR.
In the Philippines, DST can be filed using two BIR forms: BIR Form 2000 and BIR Form 2000-OT.
Also known as the Documentary Stamp Tax Declaration Return, this form must be filed by any person who makes, signs, issues, accepts, or transfers documents, instruments, loan agreements, sales, assignments, or conveyances of obligations or rights arising from Philippine sources, or when the property involved is located in the Philippines at the time of the transaction.
Certain taxpayers are required (or may choose) to use the Electronic Documentary Stamp Tax System (eDST), a secure web-based platform that imprints a stamp on taxable documents as proof of DST payment. The eDST system is based on Revenue Regulations No. 7-2009.
DST can also be filed through the BIR’s Electronic Filing and Payment System (eFPS), the government’s online tax filing platform.
Check the full guidelines for filing DST using BIR Form 2000, as well as the penalties for non-payment
This form is used for One-Time Transactions. Taxpayers may file manually, or through the eDST or eFPS systems.
Here are the full guidelines for filing DST using BIR Form 2000-OT and associated penalties
DST returns must be filed with the BIR within five (5) days after the end of the month in which the taxable document was made, signed, issued, accepted, or transferred.
Documentary Stamp Tax is recorded as an expense in the taxpayer’s books.
Going back to our earlier example of JKL Company selling a real property for ₱5,800,000, the deed of sale is a taxable document. The DST payable for this transaction amounts to ₱87,000.
Once the DST is filed and paid, JKL Company would record it in its books as:
| Item | Debit | Credit |
|---|---|---|
| Documentary Stamp Tax | ₱87,000 | |
| Cash | ₱87,000 |
Tax filings like DST can lead to costly penalties if left unmanaged, but you don’t have to navigate them alone.
Expert tax management services like CloudCFO helps startups and SMEs across the Philippines file taxes accurately and on time, while streamlining your accounting, bookkeeping, and compliance processes. Our team ensures your finance function is set up to automate, optimize, and reduce the risk of errors, so you can focus on growing your business.
Contact us today or email us at hello@cloudcfo.ph to find out how we can make your tax compliance completely stress-free.
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