New BIR RMC No. 056-2025: Documentary Stamps Must Be Affixed Before Notarization

What is this about?

The BIR released Revenue Memorandum Circular (RMC) No. 056-2025 to amend and align the rules on the payment and affixture of loose documentary stamps with Sections 188, 193, and 201 of the Tax Code. The circular clarifies that:

No document subject to Documentary Stamp Tax (DST) can be notarized unless the required DST has been paid and the stamps affixed and cancelled.

This measure enforces tax compliance before documents acquire legal effect through notarization.

Key Highlights of the Circular

1. Strict Compliance by Notaries Public

Notaries are prohibited from adding their jurat or acknowledgment to any taxable document unless proper documentary stamps are affixed and cancelled.

Example: Contracts, affidavits, or certificates requiring DST must first bear the appropriate loose documentary stamps before notarization.

2. Documents Covered

This includes certificates issued by:

• Notaries public

• Customs officers, marine surveyors, or similar authorities

• Public offices for certificates of description or proof of fact

• Powers of attorney, except those related to claims due from or accruing to the government

  
  

3. Exceptions

Loose documentary stamps are not required for:

• One-Time Transactions (ONETT)

• Documents issued by taxpayers using the eDST system

• Certificates covered by the Constructive System/Receipt System (CS/RS) under RR No. 2-2023

How to Procure and Affix Loose Documentary Stamps Properly

Purchase Only from Authorized BIR Officers

Loose documentary stamps must be bought only from Specialized Revenue Collecting Officers (SRCO), Revenue Collection Officers (RCO), or the General Service Division (GSD).

Steps in Affixture

1. Present the original signed taxable document.

2. The SRCO, RCO, or GSD will:

   • Affix the stamp to the lower portion of the document.

   • Cancel the stamp by drawing two lines across it, partially over the document, and indicate the date of affixture.

3. The document with the cancelled documentary stamp will then be released to the requester.

   
   

Special Requirements for Notaries Public

When purchasing loose documentary stamps, notaries must provide the following information:

• Roll of Attorney’s Number

• Name of notary public as indicated in the commission

• Serial number of commission

• Expiration date of commission

This process ensures traceability and accountability for notarized documents.

Penalties for Non-Compliance

If a document is notarized without affixed DST, it is considered non-compliant with Section 201 of the Tax Code, leading to:

• Invalidity of notarization

• Potential tax evasion penalties for the involved parties

• Administrative sanctions for the notary public

Why is this important?

This amendment reinforces the BIR’s tax enforcement and collection mechanisms by:

• Ensuring that taxes are settled before documents acquire legal effect

• Holding notaries accountable for compliance

• Aligning previous RMC 92-2024 with the Tax Code and Supreme Court directives

Key Takeaway for Professionals and Businesses

Ensure that documentary stamps are properly secured, affixed, and cancelled before seeking notarization to avoid delays, document rejections, or penalties. Consult your CPA lawyer to verify compliance with this new requirement and maintain smooth, tax-compliant transactions.