Proposal to Exempt Non-Commercial Documents from Stamp Tax
Albay’s 3rd district Congressman-elect plans to introduce a bill aiming to exempt non-commercial documents from the stamp tax. This move intends to ease the financial burden on ordinary Filipinos who pay taxes on documents unrelated to financial transactions.
The proposed legislation focuses on documents such as diplomas, transcripts, police and NBI clearances, birth, marriage, and death certificates, as well as powers of attorney for personal or medical reasons, and deeds of donation. These documents currently incur stamp taxes despite not involving any commercial dealings.
The Burden of Stamp Taxes on Everyday Documents
“Mag-aaffidavit ka na lang kasi namatayan ka, may tax pa. Halos wala namang kinikita ang gobyerno dito. Pahirap lang talaga,” a local official commented, highlighting the frustration of people who face taxes even for simple affidavits related to the loss of loved ones. This taxation, many argue, adds unnecessary hardship without significantly benefiting government revenue.
Details of the Proposed Amendments
The bill aims to amend seven specific sections of the National Internal Revenue Code, including sections 173, 185, 189, 190, 191, 193, and 196. The goal is to clarify the law so that only documents recording commercial or financial transactions will be subject to stamp tax.
Importantly, the proposal does not seek to affect the stamp tax applied to bank loans, insurance policies, or property sales. Instead, it targets the removal of taxes on documents unrelated to commerce, thereby simplifying compliance and providing relief to many citizens.
Implications and Next Steps
If passed, this measure could significantly reduce the cost and hassle for Filipinos needing documents for personal matters. It also promises to clean up the tax code by eliminating outdated or unnecessary provisions that currently complicate the process.
Sources familiar with the matter indicate that the bill is set to be filed once the congressman-elect officially assumes office, signaling a promising step toward tax reform that prioritizes the welfare of ordinary citizens.
For more news and updates on stamp tax exemption, visit Filipinokami.com.