BIR Issues a Revenue Regulation in implementing Sec. 4 (aa) of the R.A. No. 11469, otherwise known as the “Bayanihan to Heal as One Act”, providing exemption from Documentary Stamp Tax (DST) pursuant to relief for loans falling due within the ECQ period.

The Bureau of Internal Revenue issued Revenue Regulations No. 8-2020 implementing Section 4 (aa) of the Republic Act No. 11469, otherwise known as the “Bayanihan to Heal as One Act”.

Coverage:

These regulations cover all extensions of payment and/or maturity periods 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) 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. These regulations also cover credit restructuring, micro-lending including those obtained from pawnshops and extensions thereof during the ECQ Period. (Emphasis Supplied)

Definition of Terms:

For purposes of these Regulations and to ensure effective implementation of Section 4(n) of the Bayanihan to Heal as One Act, the following words and phrases shall have the meaning indicated below:

Covered Institutions
It shall mean all lenders, including but not limited to banks, quasi-banks, non-stock savings and loan associations, credit card issuers, pawnshops and other credit granting financial institutions under the supervision of the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), and Cooperative Development Authority, public or private, including the Government Service Insurance System, Social Security System and Pag-IBIG Fund.

Loan Amortization
It means a scheduled periodic payment that is applied to both loan principal and/or interest.

ECQ Period
It means the Enhanced Community Quarantine period from 17 March 2020 to 12 April 2020 cited in Proclamation No. 929 dated 16 March 2020.

Due Date
It means the maturity date of the principal and/or interest, including amortization falling within the ECQ period.

Exemption from Documentary Stamp Tax (DST) pursuant to relief for loans falling due within the ECQ Period:

No additional DST, including that imposed under Section 179, 195 and 198 of the NIRC, shall apply to credit extensions and credit restructuring, micro-lending including those obtained from pawnshops and extensions thereof during the ECQ Period.

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