Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

REC
yre-3.1 JUL 2013

SIXTEENTH CONGRESS ,

First Regular Session

HOUSE BILL NO. 2128

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE

This proposed measure seeks to provide tax relief by exempting documents
evidencing the receipt of personal property as security for a loan of money not
exceeding ten thousand pesos (P 10,000.00) from the payment of Documentary Stamp
Tax

It amends Section 199 of the National Internal Revenue Code of 1997, as
amended, by providing an additional provision that pledge documents, deeds of trust or
other papers evidencing the receipt of personal property on loans as security for the
payment of money shall be exempted from documentary stamp tax.

Having in mind that many Filipinos would resort to loan or pledge in times of dire
need, this measure will surely ease the pockets of the less fortunate, and thereby
dispensing the payment of unnecessary fees and taxes on their part.

In view of the foregoing, immediate passage of this bill is hereby sought

MARCELINO “MARCY” R. TEODORO.

Representative
1 District, City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

‘SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2128

INTRODUCED BY: HON. MARCELINO “MARCY” R. TEODORO

AN ACT EXEMPTING PLEDGE OF PERSONAL PROPERTY COVERING A LOAN OF
MONEY NOT EXCEEDING TEN THOUSAND PESOS FROM DOCUMENTARY
STAMP TAX, AMENDING FOR THIS PURPOSE THE NATIONAL INTERNAL

REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 199 of the National Internal Revenue Code of 1997, as amended
by Republic Act No. 9243, is hereby further amended to read as follows:

SEC. 199. Documents and Papers Not Subject to Documentary Stamp Tax. — x x
x

(0) PLEDGE DOCUMENTS, DEEDS OF TRUST OR OTHER PAPERS
EVIDENCING THE RECEIPT OF PERSONAL PROPERTY ON LOANS AS
SECURITY FOR THE PAYMENT OF ANY DEFINITE AND CERTAIN SUM OF
MONEY WHERE THE PRINCIPAL AMOUNT LOANED DOES NOT EXCEED
TEN THOUSAND PESOS (Php 10,000.00): PROVIDED, THAT ANY LOAN
DOCUMENT CONTAINING A SECURITY OF PERSONAL PROPERTY MORE
THAN THE SAID AMOUNT, SHALL BE SUBJECT TO STAMP TAX AS
PROVIDED FOR IN SECTION 179 OF THIS CODE.

‘SEC. 2. Implementing Rules and Regulations. - The Secretary of Finance shall, upon
the recommendation of the Commissioner of Intemal Revenue, promulgate and publish
the necessary rules and regulations for the effective implementation of this Act.

SEC. 3. Separability Clause. — If any provisions or part hereof, is declared invalid or
unconstitutional, the remainder of the law not otherwise affected shall remain valid and
subsisting.

SEC. 4. Repealing Clause. — Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent
with the provisions of this Act is hereby repealed, modified or amended accordingly.

SEC. 5. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation, whichever is
earlier,

Approved,