(Philippine legal and tax context)

1) What Documentary Stamp Tax (DST) is — and why notarization often triggers the question

Documentary Stamp Tax is an excise tax imposed on certain documents, instruments, loan agreements, and papers that evidence the creation, assignment, transfer, or extinguishment of obligations or rights. In the Philippines, DST is imposed under Title VII of the National Internal Revenue Code (NIRC), as amended (commonly referenced through the DST provisions beginning with Section 173 and the specific DST schedules for particular instruments).

Notarization is frequently associated with DST because many instruments that people notarize—deeds of sale, real estate mortgages, leases, loan agreements, donations, assignments, and similar documents—are among the instruments that may be subject to DST. But DST is not imposed “because” of notarization. DST generally attaches because of the nature of the instrument and the transaction it evidences, and the tax becomes due based on the document’s execution/issuance/acceptance/transfer (depending on the instrument), not simply because a notary public affixed a seal.

That said, in practice, many transactions are treated as “completed” (and thus ripe for DST compliance) around the time the document is signed and notarized, so the due-date question is commonly framed as: “When is DST due after notarization?”

2) The governing rule on when DST is due (general principle)

As a rule, DST becomes due upon the execution, signing, issuance, acceptance, or transfer of the taxable instrument—whichever event the DST provision for that instrument treats as the taxable moment. For many common notarized documents, the practical reference point is the date of execution (often the signing/notarization date).

Think of it in two layers:

Taxability / Attachment: Does the instrument fall under the DST provisions (e.g., deed of sale, mortgage, lease, loan agreement, etc.)?
Compliance / Filing and Payment: Once DST attaches, what is the deadline to file the DST return and pay the tax?

The second layer is where the due date rules under the NIRC and BIR implementation come in.

3) The core due-date rule for filing and paying DST (the “monthly cut-off” approach)

For DST that is paid through a DST return (as most taxpayers do today), the general compliance rule is:

DST is filed and paid on a return, and the return/payment is due shortly after the close of the month when the taxable document was made/signed/issued/accepted/transferred (depending on the instrument).

In practical terms, the system is usually “month-based”: you look at the month when the taxable document event happened, then count a short number of days after the end of that month.

Two common compliance tracks are encountered in practice:

A) One-Time Transactions (commonly using a one-time DST return)

For many individuals and entities that are not regularly filing DST returns for ongoing business instruments, DST is often paid as a one-time transaction (frequently associated with real property transfers, mortgages, deeds, etc.). In that track, DST is commonly filed and paid within five (5) days after the close of the month when the taxable document was executed/notarized (or otherwise became taxable).

Illustration:

Deed of Absolute Sale notarized on March 10 → DST commonly due within 5 days after March 31, i.e., on or before April 5 (subject to weekend/holiday adjustments in practice and BIR systems).

B) Taxpayers “regularly” filing DST returns (monthly DST filing)

Banks and certain taxpayers who routinely generate taxable documents often follow a monthly DST return regime where filing and payment is due within a slightly longer post-month period (commonly within ten (10) days after the close of the month), depending on the taxpayer’s filing system and the BIR’s current implementation framework.

Practical takeaway: If you are an individual or a business paying DST for a specific notarized instrument as a one-off compliance step, you will usually encounter the “5 days after month-end” deadline. If you are a taxpayer regularly filing DST (e.g., institutions, frequent issuers), you may encounter a monthly deadline that can be later than the one-time deadline.

4) Notarization date vs. execution date — which date controls?

For many notarized instruments, the notarial acknowledgment is on the same day the parties sign; the instrument is typically treated as executed on that date.

However, it’s important to distinguish:

Date of signing/execution (when parties sign)
Date of notarization (when acknowledged before the notary and entered in the notarial register)
Date of effectivity (when obligations begin, sometimes a future date)
Date of acceptance/issuance/transfer (relevant for certain instruments)

DST is generally keyed to execution/issuance/acceptance/transfer, not “effectivity” (unless the specific DST provision treats it that way). When a document is signed on one day and notarized on another, taxpayers often use the notarization date as the conservative reference because it is clearly evidenced by the acknowledgment, but the legally relevant taxable moment may still be the execution date depending on the instrument and facts.

Practical compliance posture: When in doubt, treating DST as due based on the earliest defensible taxable date (often the signing/execution date) reduces penalty exposure.

5) Who is liable to pay DST on notarized documents?

DST liability depends on the instrument:

Some instruments place the DST burden on the issuer/transferor (e.g., certain transfers, assignments).
Others are typically shouldered by the borrower (e.g., loan agreements), or by the mortgagor, or allocated by agreement (subject to enforceability between parties).
For real property conveyances, DST is often paid by the buyer in practice (by agreement), even if the law may identify the person making, signing, issuing, accepting, or transferring as responsible.

Important: Even if parties privately agree who will pay, the BIR may still pursue the party legally responsible under the Code if DST is unpaid—private allocation does not erase statutory liability.

6) Common notarized instruments that may trigger DST (and why due dates matter)

While the rate and computation depend on the specific DST schedule provision, the deadline mechanics commonly arise for:

Deeds of sale / conveyances / assignments of real property or certain rights
Real estate mortgages / chattel mortgages
Leases and subleases
Loan agreements and promissory notes (and related security instruments)
Donations (in addition to donor’s tax considerations where applicable)
Settlement, releases, and quitclaims (case-specific; not all are taxable)
Special powers of attorney are not automatically DST-taxable merely because notarized; taxability depends on whether the SPA itself falls under a DST category (often it does not), but it may be part of a broader taxable transaction documented elsewhere.

Key point: DST is instrument-specific. A notarized document can be completely outside DST if it is not among the taxable instruments under the DST provisions.

7) How DST is filed and paid (what typically happens in practice)

Most taxpayers comply by:

Preparing the DST return (commonly encountered forms include a one-time DST return for single transactions and a monthly DST return for regular filers),
Paying through authorized agent banks / electronic payment channels where available, and
Keeping proof of payment and the filed return as supporting documents.

For transactions involving real property transfers or security documentation that will be presented to government agencies or registries (e.g., Register of Deeds), DST payment is often part of a bundle of requirements needed to obtain clearances or process registrations.

8) Penalties for late payment (why the due date is critical)

Late DST payment typically exposes the taxpayer to:

Surcharge (often 25% in ordinary late filing/payment cases; potentially higher in more aggravated circumstances under the NIRC),
Interest on the unpaid amount, and
Compromise penalties (depending on the nature and posture of the violation).

Because DST deadlines can be short (especially for one-time filings), it is easy to incur penalties even when the DST amount itself is modest.

9) Practical guide: How to determine your DST due date from the notarization date

Use this checklist:

Identify the instrument (e.g., deed of sale, mortgage, lease, loan agreement).
Confirm it is DST-taxable under the DST provisions of the NIRC.
Determine the taxable event date (often execution/signing; frequently same as notarization).
Determine your filing track:
- One-time DST filing (common for individuals and one-off transactions), or
- Monthly DST filing (common for regular issuers).
Apply the month-end rule:
- If one-time: commonly within 5 days after the close of the month of the taxable event.
- If monthly filer: commonly within 10 days after the close of the month (subject to the taxpayer’s mandated filing system and BIR implementation rules).
Pay early when possible to avoid holiday/weekend/system constraints.

10) Special situations and caution points

A. Multiple documents for one transaction A single transaction can produce multiple documents (e.g., loan agreement + promissory note + mortgage). Each instrument may have its own DST treatment. Avoid assuming “one payment covers all.”

B. Documents executed abroad / notarized abroad Instruments executed outside the Philippines but involving Philippine obligations or property can raise DST timing and compliance questions; the taxable event and deadlines may be approached differently depending on the instrument’s use or enforcement in the Philippines.

C. Re-notarization / correction / re-execution If a document is re-executed or materially amended, it may trigger DST issues again depending on the nature of changes.

D. Exemptions and special laws Certain transactions may be exempt due to special laws or specific DST exemptions. Do not rely on assumptions; verify whether the instrument or the parties are within an exemption.

Bottom line

For many notarized taxable instruments in the Philippines—especially one-off documents like deeds and mortgages—the practical compliance rule you will most often encounter is:

DST is commonly filed and paid within five (5) days after the close of the month when the taxable document was executed/notarized (or otherwise became taxable).

For taxpayers who regularly file DST, a monthly filing deadline that is often within ten (10) days after month-end may apply depending on the taxpayer’s mandated filing method and classification.

Because DST rules are instrument-specific and BIR implementation details can vary by taxpayer type and system, the safest approach is to treat the taxable date conservatively (often the execution/notarization date) and pay within the earliest applicable post-month deadline to avoid surcharge and interest exposure.