DST IS NOT 1.5%

Did you know that Documentary Stamp Tax for real estate transactions is NOT 1.5%.

Many people are unaware that the Documentary Stamp Tax (DST) isn’t simply a direct multiplication of the taxable amount by 1.5%.

According to the Bureau of Internal Revenue (BIR), the DST is computed as follows:

"Php15 for the first Php1,000, and Php15 for every additional Php1,000 or fractional part thereof in excess of Php1,000."

There's a reason why they stated the tax rate this way instead of just "1.5%".

In simpler terms, you calculate taxable amount × 1.5%, then round up to the nearest multiple of 15 (if it’s not already a multiple of 15).

Example:

If the taxable amount is Php20,450,100, the DST would be Php306,765 (not Php306,751.50).

Excel Formula:

To compute DST in Excel, use:

=CEILING(TAXABLE_AMOUNT * 1.5%, 15)

Simply replace TAXABLE_AMOUNT with the relevant cell reference, e.g.,

=CEILING(A1 * 1.5%, 15)

Why is this important?

Obtaining a Manager’s Check (MC) for DST can be a tedious process, requiring you to wait in line, fill out a lengthy questionnaire, and have the check issued—a process that can take anywhere from 1 to 3 hours.

Moreover, since the BIR requires the exact amount, an incorrect MC can lead to delays and unnecessary hassle for the buyer. To avoid this, automating the DST computation in Excel ensures accuracy, streamlines the process, and saves valuable time.