BIR Revenue Memorandum Circular No. 36-2020
REVENUE MEMORANDUM CIRCULAR NO. 36-2020 issued on April 6, 2020 further clarifies the exemption from Documentary Stamp Tax (DST) of relief for qualified loans pursuant to Revenue Regulations No. 8-2020 and Revenue Memorandum Circular No. 35-2020. Subject to the provisions of Section 199(d) of the Tax Code, as amended, there shall be no additional DST to be imposed under Sections 179, 195 and 198 of the same Code, on credit extensions and credit restructuring, micro-lending, including those obtained from pawnshops and extensions thereof, during the Enhanced Community Quarantine (ECQ) period. The new loan principal shall not be subject to DST. The same tax treatment shall apply to all extensions of payment and/or maturity periods of all pre-existing loans, including but not limited to salary, personal, housing and motor vehicle loans, falling due within the ECQ period, including the extension of maturity periods that may result from the grant of grace periods for these payments, whether or not such maturity periods originally fall due within the ECQ. Fresh loan availments, top-up to existing loans and new loan drawdowns during the ECQ period and its collateral documentation remain subject to DST, as applicable. Further guidelines on the exemption from DST of credit extensions and credit restructuring as well as the reportorial requirements are specified in the Circular.
