RMC No. 22-2021: Reportorial Requirements for DST Exemption
By: Hergie Anne C. De Guzman, CPA
BIR issued Revenue Regulations (RR) No. 24-2020 on September 30, 2020 to implement the Documentary Stamp Tax (DST) exemption for extended loans or restructured credits due on or before December 31, 2020, as mandated by Republic Act (RA) No. No. 11494 or “Bayanihan to Recover As One Act”.
In line with this, BIR has issued Revenue Memorandum Circular (RMC) No. 22-2021 to prescribe the reportorial requirements for this exemption. The covered institutions (e.g. bank, lending companies, real estate developers, pre-need companies, Social Securities System, etc.) shall submit a soft and hard copy of the summary list of all pre-existing loans, pledges and other instruments as of the effectivity of RA No. 11494 or September 15, 2020 which were granted extension of payment or maturity periods based format prescribed in the RMC. The summary list shall be made under oath as to the completeness, truth and accuracy by a duly authorized officer or representative of the taxpayer, and is subject to post audit and verification by BIR. This should be submitted within sixty (60) days from December 31, 2020. (Update: Extended until March 31, 2021 in accordance with RMC No. 26-2021 issued on February 24, 2021).
In case of failure to timely submit the summary list, the DST that should have been imposed on the instrument under the Tax Code, as amended, shall be borne by the covered institution.