Summary
Highlights
The video introduces ACC 151 Strategic Tax Management, focusing on Documentary Stamp Tax (DST). Objectives include defining DST, identifying related tax forms, and listing DST rates. DST is explained as a tax on documents, instruments, loan agreements, and papers evidencing acceptance, assignment, sale, or transfer of an obligation or right. It is considered an excise tax levied on the privilege of making such transactions.
DST is typically paid by the person making, signing, issuing, accepting, or transferring the document. However, if one party to a taxable document has an exemption from the tax, they are not obligated to pay it.
The video discusses DST on the original issue of shares of stock, whether with par value, without par value, or as stock dividends. The tax rate is 2.00 PHP for every 200.00 PHP or a fraction thereof, based on the actual consideration received or the par value, whichever is higher.
An example is provided for ABC Corporation, a newly formed company that issued shares for 250,000 PHP with a par value of 200,000 PHP. To compute the DST, the higher value (250,000 PHP) is divided by 200 PHP and multiplied by 2 PHP, resulting in 2,500 PHP.
A second example calculates DST on the sale of a real property. A real property bought for 6 million PHP five years ago is sold for 15 million PHP, which is its fair market value. The DST is calculated at 15 PHP for every 1000 PHP of the selling price, resulting in a DST of 225,000 PHP.