The Bureau of Internal Revenue (BIR) has established a mechanism for electronic notaries public to comply with documentary stamp tax (DST) requirements, addressing a key regulatory hurdle in the nationwide rollout of electronic notarization for property and corporate transactions.
The arrangement allows electronically notarized documents to meet existing tax obligations through the BIR’s electronic Documentary Stamp Tax (eDST) system, supporting the shift from paper-based documentation to digital transactions.
Until direct system integration becomes available, electronic notaries public must register with the BIR and use its eDST web platform to affix electronic documentary stamps to covered documents.
The mechanism is expected to facilitate the digital processing of legal documents, particularly those used in real estate registration and corporate transactions, while preserving compliance with tax regulations.
BIR Commissioner Charlito Martin Mendoza said the bureau would issue a Revenue Memorandum Circular in the coming days to formalize the reforms and provide implementation guidelines.
The initiative forms part of broader government efforts to streamline regulatory procedures, reduce paperwork and expand access to digital public services. Its implementation also highlights the need to align digital legal processes with existing tax administration requirements.
The Supreme Court recognized the BIR’s contribution during the October 13 ceremonial signing of joint memorandum circulars with the Land Registration Authority and the Securities and Exchange Commission. The agreements establish coordination mechanisms for electronic notarization involving property and corporate documents.
Deputy Commissioner Larry Barcelo accepted the recognition on Mendoza’s behalf from Supreme Court Associate Justice Alfredo Benjamin Caguioa.
The reforms also support the BIR’s Digital and Data Transformation agenda, which seeks to modernize tax administration and make compliance more accessible as government transactions increasingly move online.
While the new mechanism addresses the documentary stamp tax component of electronic notarization, its practical impact will depend on implementation guidelines and eventual system integration. For businesses and property stakeholders, the transition could reduce reliance on physical paperwork, although electronic notaries must continue following prescribed registration and tax procedures.
