The Department of Finance (DOF) has issued Revenue Regulations (RR) No. 8-2020 on the documentary stamp tax (DST) exemption of relief for loans payments falling due within the period of the enhanced community quarantine (ECQ) imposed by the national government to slow the spread of the coronavirus.
Republic Act (RA) No. 11469 or the “Bayanihan to Heal as One Act” directs all public and private banks and other financial institutions, including the Government Service Insurance System (GSIS), Social Security System (SSS) and Pag-ibig Fund, to implement a minimum thirty (30)-day grace period for the payment of all loans including salary, personal housing, motor vehicle loans, and credit card payments, which fall due within the period of the ECQ.
To provide relief to covered institutions and their creditors, no additional DST shall be applied to credit extensions and credit restructuring, micro-lending, including those obtained from pawnshops, and extensions thereof during the ECQ period as declared under Proclamation No. 929 dated March 16, 2020.
“We want to prioritize the safety of the Filipino people during this crisis. That is why we want to institute a more flexible schedule for the payments of loans to encourage people to stay at home and comply with the quarantine protocols,” Finance Secretary Carlos Dominguez III said.
RR No. 8-2020 also covers 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 period.
The DOF is implementing measures aimed at mitigating the social and economic impact of the current global health crisis.
These efforts are anchored on providing emergency aid to marginalized and other vulnerable sectors, protecting health workers while boosting their capability to treat patients and defeat the coronavirus, and keeping the economy afloat and ready for a quick rebound once the global health crisis is over.