Armed Forces and Police Savings & Loan Association, Inc. (AFPSLAI)
The National Revenue Code (NIRC) specifically Title VII re Documentary Stamp Tax provides that there shall be imposed a documentary tax upon documents, instruments, loan agreements and papers, and upon acceptances, assignments, sales and transfers of obligation, right or property incident thereto.

In compliance thereof, AFPSLAI shall collect documentary stamp tax on all loan-related transactions as well as on memoranda of sales and lease agreements unless otherwise considered exempted.

Transactions that are subject to DST and their corresponding rates are as follows:

LOAN AGREEMENTS not covered by Mortgage Contract (e.g. Salary/Pension Loan, Back-to-back Loan, Personal Loan, etc.)

Coverage and Rate - The DST for loan agreements/promissory notes shall be collected upfront and deducted on the loan of the borrower at the rate 0.15% of the face value of the agreement or 0.30% for every P200.00 or fraction thereof. Tax shall be based on the loan principal plus interest as contained in the loan agreement/promissory note (per NIRC Title VII, Sec 180).

In case zero net loan proceeds, DST due shall be paid directly/over the counter by the borrower.

Sample computations for a P350,000 face value of loan agreement (Principal + Interest charges):

P 350,000 x 0.15% = P 525 P 350,000 / 200 x 0.15% = P 525

Exemption - This policy excludes loan agreements and promissory notes the aggregate of which does not exceed Two Hundred Fifty Thousand Pesos (P250,000) executed by an individual for his purchase on installment for his personal use or that of his family and not for business, resale, barter or hire of a house, lot, motor vehicle, appliance or furniture.

Salary/Pension Loan
Back-to-back Loan
Personal Loan
Above P250,000; P250,000 and below
P250,000 and below but purpose is for business

LOAN AGREEMENTS covered by Chattel Mortgage Contracts (e.g. Housing Loan, Vehicle Loan, etc.)

Coverage and Rate - The DST for mortgages shall be collected at the rate of P20.00 for the first Five Thousand Pesos (P5,000.00) of the amount being secured or actually loaned or given, i.e. loan principal, and additional P10.00 for each of the succeeding Five Thousand Pesos (P5,000.00) or fractional part thereof (per NIRC Title VII, Sec 195)

Sample computations for a P350,000 face value of loan agreement (Principal + Interest charges):

P 350,000 - 5,000 / 5,000 x P10.00 + P20.00 = P 710

Payment/Filing – payment of DST for Collateralized Loan and Housing Loan shall be undertaken/paid personally by the borrower outside AFPSLAI. This cannot be made on the title, which requires the payment of DST.

DST for Vehicle Loan shall form part of the processing fee being paid prior to release of loan. In this case, filing of DST Declaration/Return shall be in the name of the borrower but which may be facilitated/undertaken by an AFPSLAI representative to be affixed in a non-AFPSLAI DST metering machine.

MEMORANDA OF SALES (e.g. Sales Contract Receivables, Purchase Agreements etc.)

Coverage and Rate - The DST shall be One peso and fifty centavos (P1.50) on each Two Hundred Pesos (P200.00) or fractional part thereof of the selling price or zonal value, whichever is higher (per NIRC Title VII, Sec 176).

P 350,000 / P200.00 x P1.50 = P 2,625

Payment/Filing – The required DST shall be borne by AFPSLAI, hence, actual affixture of the SCR and purchase agreements shall be borne thru Office of the SVP, Operations and AFPSLAI Aguinaldo Branch, respectively.

LEASE AGREEMENTS (e.g. Lease Contract)

Coverage and Rate - The DST shall be Three Pesos (P3.00) for the first Three Thousand Pesos or fractional part thereof, and additional One Peso (P1.00) for each of the succeeding One Thousand Pesos (P1,000.00) or fractional thereof, for each year of the term of said contract/agreement which shall also be construed as the total lease for the whole term (per NIRC Title VII, Sec 194).

P 350,000 - P2,000.00 / P1,000.00 x P1.00 + P3.00 = P 351

Payment/Filing – The required DST shall be paid by the lessee thru AFPSLAI Aguinaldo Branch which shall also undertake actual affixture of the document.