RMC No. 6-2022 2

RMC No. 6-2022 (issued January 18, 2022) clarifies the Documentary Stamp Tax (DST) imposed under Section 175 of the 1997 Tax Code, as amended, on transfers of shares of stock. Transfers made pursuant to a Deed of Donation and transfers pursuant to a decedent's Will as approved by the probate court in a Judicial Settlement of Estate are subject to DST. Transfers of shares from a decedent's estate to heirs through intestate succession (without a Will) are generally not subject to DST under Section 175 because ownership passes by succession by operation of law. However, if in a Judicial or Extra-Judicial Settlement of Estate (both without a Will) an heir specifically waives or renounces his or her share over the inherited shares of stock, the renounced/waived shares transferred to another heir/s are also subject to DST, in which case the rules in RMC No. 94-2021 apply.