FOURTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
S E N A T E  
S. No. 
6 
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n@.y \/:T v 
Introduced by Senator Lacson 
EXPLANATORY NOTE 
It is a fact that the Philippines' financial markets are unable to sustain the 
investment activities needed to support the country's economic growth. 
It is a fact that while our financial system offers financial instruments to investors, 
the transactions and volumes involved are negligible vis-a-vis our neighboring countries. 
It is a fact that in spite of the relatively small market transactions, the 
intermediation costs are high, and long-term funds are inadequate and expensive. 
And it is a fact that the current financial meltdown in the First World will have a 
telling impact on our financial system for a much longer time. 
Unless we do something to help negate this deplorable situation. 
On March 20, 2009, the 5-year exemption period provided under Republic Act 
9243 on the documentary stamp tax on the sale, barter or exchange of shares of stock 
listed and traded through the stock exchange shall expire. With this, stock transactions 
will be slapped P0.75 for every P200.00 par value on the secondary trading through the 
stock exchange. 
Studies by the Philippine Stock Exchange show that this DST re-imposition will 
result in investors having to pay additional 8 to 11 basis points per trade in the stock 
exchange. As in all indirect taxes, such additional cost shall eventually be charged to 
buyers. 
This bill seeks to extend by another three (3) years the exemption from DST of 
the sale, barter or exchange of shares of stock listed and traded through the local stock 
exchange reckoned from the effectivity of enactment of this bill. 
The intention of this bill is to temper the impact of the 2008 economic meltdown 
and to promote the growth of secondary trading. 
Premises considered, approval of this bill is earnestly sought. 
PA 
ON 


FOURTEENTH CONGRESS OF THE) 
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Second Regular Session 
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Introduced by Senator Lacson 
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AN ACT 
EXTENDING FOR ANOTHER THREE YEARS THE EXEMPTION FROM 
DOCUMENTARY STAMP TAX OF THE SALE, BARTER OR EXCHANGE OF 
SHARES OF STOCK LISTED AND TRADED THROUGH THE LOCAL STOCK 
EXCHANGE, AMENDING FURTHER SECTION 199 OF THE NATIONAL INTERNAL 
REVENUE CODE, AS AMENDED. 
Be it enaded by the Senate and the House of Representatives of the Congress of the 
Philippines in session assembled: 
SECTION 1. Section 199 subparagraph (e) 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 Stamp Tax. - The 
provisions of Section 173 to the contrary notwithstanding, the following 
instruments, documents and papers shall be exempt from the 
documentary stamp tax: 
“xxx 
“e. 
SALE, BARTER OR EXCHANGE OF SHARES OF STOCK 
LISTED AND TRADED THROUGH THE LOCAL STOCK EXCHANGE 
FOR A PERIOD OF THREE (3) YEARS FROM THE EFFECTIVITY OF 
THIS ACT. 
xxx” 
SEC. 2. Implementing Rules and Regulations. - The Secretary of Finance, 
Governor of the Bangko Sentral ng Pilipinas, and Commissioner of the Securities and 
Exchange Commission shall promulgate and publish the necessary rules and 
regulations for the effective enforcement of the provisions of this Act. 
SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved,