Notarial Fee Service Agreement 1 Million Pesos Philippines


Notarial Fee for a Service Agreement Worth ₱1 Million in the Philippines

A comprehensive legal primer

1. Why notarize a service agreement?

  1. Public‐document effect – Once acknowledged before a notary, a private contract becomes a public instrument (Rules on Evidence, Rule 132 §20). Courts must admit it without further proof of authenticity unless impugned for forgery or irregularity.
  2. Date and venue certainty – The notarial certificate fixes the date and place of execution (Civil Code Art. 1279); this matters for priority, prescriptive periods, and tax liabilities.
  3. Deterrence of fraud – Parties must appear personally, present competent evidence of identity, and sign in the notary’s presence, sharply reducing the risk of impostors or undisclosed alterations.
  4. Administrative compliance – Government agencies and many private counterparties require notarized contracts for accreditation, bidding, visas, financing, or registration.

Bottom-line: Notarization is optional for the contract’s validity (service contracts are consensual under Art. 1318), but it confers probative value and practical utility that often makes it indispensable.


2. Governing legal framework

Source Key provisions relevant to fees
2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC, as amended) Rule IV §1-3: every commissioned notary must post a “Schedule of Notarial Fees,” charge only what is published, and issue an official receipt.
Local Integrated Bar of the Philippines (IBP) chapters Each chapter (e.g., IBP-Makati, IBP-Cebu City) periodically issues a fee matrix—usually adopted by city/municipal councils and posted in the Hall of Justice.
Local revenue ordinances LGUs may impose an occupational tax on notaries and fix maximum fees (Local Government Code §147).
BIR National Internal Revenue Code of 1997 Documentary Stamp Tax (DST) on certain instruments (§179-199); service agreements generally attract the fixed rate of ₱30 under §195 (“other documents”).
Civil Code & Rules of Court Provide substantive and procedural backdrop but leave fee-setting to Supreme Court and local regulation.

3. Fee computation for a ₱1,000,000 service agreement

Fee schedules are value-tiered for contracts evidencing consideration. While figures differ slightly among cities, the method is uniform.

Typical IBP city schedule (illustrative)

Contract Value Bracket Notarial Fee
Up to ₱100,000 ₱1,000
Every additional ₱100,000 or fraction +₱100

Worked example

₱1,000,000 service agreement

  1. First ₱100,000 → ₱1,000
  2. Remaining ₱900,000 ÷ ₱100,000 = 9 increments → 9 × ₱100 = ₱900

Total base fee: ₱1,900

Add-ons to expect:

Item Typical amount Notes
12 % VAT (if the notary is VAT-registered) ₱228 VAT registration is optional for professionals below ₱3 M annual gross; many small practitioners are non-VAT.
Documentary Stamp Tax ₱30 Payable via adhesive stamps or eDST before notarization.
Out-of-office appearance / travel fee ₱500-₱2,000 Only if the notary is requested to visit a client site or hospital; must be itemized separately.
Copies & certification ₱50-₱100 per extra signed page The acknowledgment page counts as one page; attachments are separate.

Hence, a straightforward in-office notarization normally ranges ₱1,900 – 2,200 (plus DST) in Metro Manila and comparable urban centers. Provincial cities may charge slightly less; high-rise business districts sometimes impose a higher base (₱1,500 first ₱100k, ₱150 per increment).


4. Procedural checklist

  1. Confirm authority

    • Check the notary’s Certificate of Commission and verify it has not expired (one-year term).
  2. Prepare identification

    • Each signatory must present one current government-issued ID bearing photo and signature (Rule II §12).
  3. Affix documentary stamps if applicable.

  4. Personal appearance & signing

    • All parties must sign in the notary’s presence using permanent ink on every page’s left margin and full signature on the last page.
  5. Acknowledgment & oath

    • The notary completes the jurat/acknowledgment with docket number, page, and notarial register (book) entry.
  6. Payment & receipt issuance

    • Demand the official receipt and inspect that the amount matches the posted schedule (Rule IV §2).
  7. Release

    • You receive the notarized original; the notary retains a photocopy or electronic scan per Rule VI §2 and uploads the monthly notarial report to the Clerk of Court.

5. Compliance and penalties

Infraction Consequence
Overcharging Administrative complaint to the IBP or Supreme Court; penalties include fine, suspension, or revocation of commission.
Unlicensed notarization Crime of falsification of public documents (Revised Penal Code Art. 171) and law practice without authority.
Failure to record in notarial register Grounds for suspension and civil liability; the notarization may be declared void, stripping the document of public status (e.g., A-Z Marketing v. CA, G.R. 108399).
Absent signatory / forged signature Instrument becomes voidable; offending party faces criminal and administrative sanctions.

6. Documentary Stamp Tax nuances

  • Service contracts fall under “other documents” (NIRC §195) → flat DST of ₱30 regardless of value.
  • If the agreement secures payment by way of pledge, mortgage, or guaranty, additional DST applies to the security instrument (e.g., §195, §195(A)).
  • Failure to affix or e-stamp DST invalidates notarization and incurs a surcharge, interest, and compromise penalty upon later enforcement or registration.

7. Practical pointers for parties

  1. Ask for the fee schedule – Notaries are legally obliged to post it conspicuously.
  2. Bundle related instruments – If you need a Secretary’s Certificate or Board Resolution, having them notarized together often attracts a package discount.
  3. Clarify VAT upfront – Determine whether quoted fees are VAT-inclusive.
  4. Keep a digital copy – A scanned, notarized PDF with visible stamps simplifies e-filing and future reference.
  5. Verify e-DST – If the notary uses the BIR’s eDST system, request a copy of the confirmation for audit trails.

8. Frequently asked questions

Question Short answer
Must a ₱1 M contract be notarized to be enforceable? No; consensual contracts are binding once essential requisites concur, but notarization greatly strengthens evidentiary weight and market acceptance.
Can we notarize via videoconference? Philippine rules still require physical presence before the notary. Interim remote guidelines during COVID-19 (OCA Circular 2020-63) lapsed in 2021.
Who pays the fee? Parties are free to allocate cost by stipulation; customarily the party requesting notarization shoulders it.
Is the fee negotiable? A notary may charge less than the schedule but never more. Large corporate volumes often enjoy discounted rates.
What if there are 20 pages? Fee is based on value plus per-page surcharges (₱50-₱100) beyond the first few pages, depending on the schedule.

9. Conclusion

For a ₱1 million-peso service agreement, expect a notarial fee in the ₱1,900–2,200 band, exclusive of a ₱30 documentary stamp tax, under the prevailing IBP schedules in most Philippine jurisdictions. While not a statutory requirement for validity, notarization transforms your contract into a self-authenticating public document that is easier to enforce, register, and rely on in commercial dealings. Always transact with a commissioned notary, insist on the posted fee schedule, and observe proper documentary stamp compliance to safeguard the integrity of your business agreement.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific concerns, consult a Philippine lawyer or the local IBP chapter.


Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.