How to Compute Documentary Stamp Tax on Lease Agreements (BIR Form 2000)
Documentary Stamp Tax (DST) on a lease of land or tenements is computed under Section 194 of the National Internal Revenue Code (NIRC), as amended by the TRAIN Law (Republic Act No. 10963) and implemented by Revenue Regulations (RR) No. 4-2018: ₱6.00 on the first ₱2,000 of the contract value, plus ₱2.00 for every additional ₱1,000 (or fraction), for each year of the lease term. The tax is filed on BIR Form 2000, normally within five days after the close of the month the lease was signed.
This guide walks through the Section 194 formula, a worked multi-year office lease, and how lease DST fits beside the broader DST / BIR Form 2000 overview. For the expanded withholding side of rent payments, see Withholding Tax on Rent: BIR Form 2307 for Lessors.
Track Lease DST and Rent Withholding Deadlines FREE →What does Section 194 tax, and what is the rate? #
Section 194 imposes DST on each lease, agreement, memorandum, or contract for the hire, use, or rent of any lands or tenements (or portions thereof). RR No. 4-2018 restates the TRAIN-adjusted rate:
| Component | Amount |
|---|---|
| First ₱2,000 (or fraction) of the yearly contract value | ₱6.00 |
| Each additional ₱1,000 (or fraction) in excess of ₱2,000 | ₱2.00 |
| Multiplier | For each year of the contract term |
Leases of condominium units, apartments, houses, offices, warehouses, and commercial spaces documented in a written lease are the everyday cases. The tax attaches to the document; parties may agree contractually who shoulders the cash cost, but the filing obligation still needs a Form 2000 return.
How do you compute DST on a multi-year lease? #
Compute the tax on one year’s rental value using the ₱6 / ₱2 schedule, then multiply by the number of years in the written term. Include contractual escalations that are already fixed for those years when determining each year’s base.
Worked example: A company signs a two-year office lease on 15 July 2026 at ₱80,000 per month, with no escalation in year 2.
| Step | Computation |
|---|---|
| Annual rent | ₱80,000 × 12 = ₱960,000 |
| First ₱2,000 | ₱6.00 |
| Excess over ₱2,000 | ₱960,000 − ₱2,000 = ₱958,000 → 958 units of ₱1,000 |
| Additional DST for one year | 958 × ₱2.00 = ₱1,916.00 |
| DST for one year | ₱6.00 + ₱1,916.00 = ₱1,922.00 |
| DST for two-year term | ₱1,922.00 × 2 = ₱3,844.00 |
File BIR Form 2000 for ₱3,844 within five days after the close of July 2026 (the month of execution), keep a copy of the stamped/return-supported lease file, and remember that a signed renewal for another two years will generally restart the DST computation on the new term.
When and how do you file? #
Report and pay the lease DST on BIR Form 2000 through eFPS or eBIRForms, with the Authorized Agent Bank or collection officer of the RDO where the taxpayer is registered. Timing follows the Form 2000 five-day-after-month-end rule under Section 200 / RR No. 6-2001 practice, as reaffirmed for Form 2000 in Revenue Memorandum Circular No. 67-2024 (discussed in the DST overview).
Keep with the lease file:
- Executed lease (and any renewal)
- BIR Form 2000 and proof of payment
- Computation worksheet showing annual rent, years, and DST due
Missing DST on a lease is a document-level exposure that often surfaces in BIR audits alongside rent expense and BIR Form 2307 withholding on the same space.
Frequently asked questions #
What is the Documentary Stamp Tax rate on a lease agreement? #
Under NIRC Section 194, as amended by the TRAIN Law and implemented by Revenue Regulations No. 4-2018, DST on each lease of lands or tenements is ₱6.00 for the first ₱2,000 (or fraction) and an additional ₱2.00 for every ₱1,000 (or fraction) in excess of the first ₱2,000, for each year of the term of the contract.
Is DST on a lease based on monthly rent or annual rent? #
The statutory schedule in Section 194 is applied to the contract value for each year of the lease term. In practice, taxpayers compute the tax on the annual rental (monthly rent × 12, including known escalations for that year) and then multiply by the number of years covered by the written lease.
When must DST on a lease be filed and paid? #
DST is reported on BIR Form 2000 and, under Section 200 of the NIRC and Revenue Regulations No. 6-2001 as commonly applied to Form 2000 filings, paid within five (5) days after the close of the month in which the lease was made, signed, issued, accepted, or transferred. The BIR reaffirmed the five-day Form 2000 timing in Revenue Memorandum Circular No. 67-2024.
Does renewing a lease trigger new DST? #
A new written lease, renewal, or extension that grants a further lease term is a new taxable document and generally attracts DST again on the renewed term. Automatic month-to-month continuation without a new written instrument is a different fact pattern — document whether a fresh contract was signed.
Which form do I use — BIR Form 2000 or Form 2000-OT? #
Ordinary lease contracts entered in the course of business are filed on BIR Form 2000 (Documentary Stamp Tax Declaration/Return). BIR Form 2000-OT is reserved for specified one-time transactions such as certain real-property and unlisted-share transfers — see the companion DST overview for the split.
Summary #
Lease DST is a short formula with real cash impact: apply Section 194’s ₱6 / ₱2 schedule to each year’s rent, multiply by the lease term, and file BIR Form 2000 soon after the month of signing. Pair that filing with rent-side expanded withholding on the lessor so the same lease does not create two separate compliance gaps.