April 3, 2020

REVENUE MEMORANDUM CIRCULAR NO. 036-20

SUBJECT : Further Clarification on the Exemption from Documentary

Stamp Tax (DST) Relief for Qualified Loans Pursuant to
Revenue Regulations No. 8-2020 Dated April 1, 2020 and
Revenue Memorandum Circular No. 35-2020 dated April 2,
2020

TO : All Internal Revenue Officers and Others Concerned

A. BACKGROUND
In line with the national policy articulated in Republic Act (R.A.) No. 11469, otherwise
known as the "Bayanihan to Heal as One Act" to mitigate the transmission of COVID-19,
mobilize assistance in the provision of basic necessities to affected persons, undertake a
program for recovery and rehabilitation, ensure su cient, adequate and readily available
funding and promote and protect the collective interests of all Filipinos in these challenging
times, among others, and the power granted to the President to direct all banks, quasi-banks,
nancing companies, lending companies, and other nancial institutions, public and private,
including the Government Service Insurance System, Social Security System and Pag-IBIG
Fund, to implement a minimum of a thirty (30)-day grace period for the payment of all loans,
including but not limited to salary, personal housing, and motor vehicle loans, as well as credit
card payments, falling due within the period of the Enhanced Community Quarantine (ECQ)
without incurring interest, penalties, fees, or other charges, this Circular is hereby
promulgated to suspend the imposition of charges as provided in the Rules and Regulations
Implementing Section 4 (aa) in relation to Section 4 (n) of the "Bayanihan to Heal as One Act."
B. TAX TREATMENT
Subject to the provisions of Section 199 (d) of the Tax Code, as amended, there shall
be no additional DST to be imposed under Sections 179, 195 and 198 of the same Code, on
credit extensions and credit restructuring, micro-lending including those obtained from
pawnshops and extensions thereof during the ECQ Period. The new loan principal shall not be
subject to DST.
The same tax treatment shall apply to all extensions of payment and/or maturity
periods of all pre-existing loans, including but not limited to salary, personal, housing, and
motor vehicle loans, falling due within the ECQ Period contemplated by Section 4 (aa) of R.A.
No. 11469, including the extension of maturity periods that may result from the grant of grace
periods for these payments, whether or not such maturity periods originally fall due within the
ECQ.
Further guidance on the above exemption from DST shall be as follows:
1. Credit extensions:
a. Those pertaining to pre-existing loans that fall due during the ECQ Period
where interest is paid but the principal is converted into a new loan with a
new maturity date. The said new loan principal and the renewal or
extension of the loan's mortgage, pledge or deed of trust (collateral
documentation) shall be exempt from DST.
b. Those pertaining to pre-existing loans that fall due during the ECQ Period
where interest is paid but the principal is rolled-over or renewed as a new
loan principal in accordance with a pre-agreed roll-over arrangement and
CD Technologies Asia, Inc. © 2020 cdasiaonline.com
 collateral documentation thereof prior to the COVID-19 situation shall
remain subject to DST. CAIHTE

2. Credit restructuring:
a. Those pertaining to pre-existing loans that fall due during the ECQ Period
where both the principal and interests are not paid but are consolidated
and converted into a new loan principal with a new maturity date and the
renewal or extension of the loan's mortgage, pledge or deed of trust
(collateral documentation) shall be exempt from DST.
b. Those pertaining to pre-existing loans that fall due during the ECQ Period
where there is payment of interest and partial payment of principal on
maturity while the remaining unpaid principal is converted into a new loan
principal with a new maturity date and the renewal or extension of the
loan's mortgage, pledge or deed of trust (collateral documentation) shall
be likewise exempt from DST.
3. Fresh loan availments, top-up to existing loans and new loan drawdowns during
the ECQ Period and its collateral documentation remain subject to DST, as
applicable.
C. REPORTORIAL REQUIREMENTS
Covered Institutions, but not limited to banks, quasi-banks, nancing companies,
lending companies, and other nancial institutions, public and private, including the
Government Service Insurance System, Social Security System and Pag-IBIG Fund shall
submit in hard and soft copy, a summary listing of all pre-existing loans, pledges and other
instruments as of March 17, 2020 (commencement date of ECQ) which were granted
extension of payment and/or maturity periods based the following format:
Name of Taxpayer
Summary Listing of Pre-existing Loans, Pledges and Other Instruments with
Granted Extension of Payment and/or Maturity Periods
As of March 17, 2020

Type o f Date o f Lo an Do cument Original E xtended Amo unt o f

Instrument Agreement/Pro misso ry Reference Payment Payment Lo an/Pledge
No te, Pledge, etc. Number Deadline Deadline/Maturity
(Acco unt Maturity Perio d
ID/Reference Perio d
ID, as
applicable)

The above-mentioned summary listing shall be submitted to the Revenue District

O ce/Large Taxpayers Service/Large Taxpayers District O ce where the taxpayer is
registered within sixty (60) days from the lifting of the ECQ. The hard copy of the above
summary listing together with photocopies of the documents evidencing the credit
extensions and credit restructuring shall be made under oath as to the completeness, truth
and accuracy thereof by a duly authorized officer or representative of the taxpayer.
D. PENALTIES
In case of failure to submit the summary listing required on the date prescribed
therefor, there shall upon notice and demand by the Commissioner, be paid by the Covered
Institution, the additional DST that should have imposed on the instrument during the ECQ as
CD Technologies Asia, Inc. © 2020 cdasiaonline.com
 imposed under the Tax Code, as amended, plus administrative penalties incident to such
failure. DETACa

All Internal revenue o cials and employees are hereby enjoined to give this Circular as
wide a publicity as possible.
This Circular shall take effect immediately.

(SGD.) CAESAR R. DULAY

Commissioner of Internal Revenue

CD Technologies Asia, Inc. © 2020 cdasiaonline.com