Mr. Sam de la Cruz, the president of the company asked you to help him compute the documentary stamp tax in some of his transactions for the taxable year 2020. 

During the year, he has several loans contracted with some financial institutions. One of which is with BDO where the loan is P 4,567,990.  Another one is with BPI where the loan is P 2,567,500 with a mortgage of real property of P 679,000.

After which, the first asset was sold for P 5,000,000 while the second one was sold for P 2,450,000. He eventually purchased 1,000 shares of GMA Corp at a par value of P 1,000 per share.  He also got insurance for his family. His personal insurance is worth P 10,000,000 while those of his 5 children and wife is P 1,000,000 each and P 5,000,000 respectively. He also got pre-need plans in the amount of P 1,000,000.

Required: Compute the total DST that will be paid by Mr. Sam de la Cruz.

Answer rating: 100% (QA)

PHP 150 for every PHP 200 for loans exceeding PHP 250000 The Bureau of Internal Revenue BIR requires ... View the full answer