SUBPART E.-TAX ON SALES OR TRANSFERS OF CERTIFICATES OF INDEBTEDNESS 43.4331-4 Requirement of memoranda of agreements to sell, etc. 43.4331-5 Records of sales and transfers of certificates of inedbtedness-43.4331-6 Registration of brokers, exchanges, and nominees... 43.4331-7 Rules applicable to clearing houses- 43.4332 Statutory provisions; exemptions.. 43.4332-1 Exemptions... 43.4333 Statutory provisions; cross references. 43.4333-1 Cross references.. SUBPART F.-PROVISIONS COMMON TO SALES OR TRANSFERS OF CAPITAL STOCK AND CERTIFICATES OF INDEBTEDNESS Definitions.. Statutory provisions; stock or certificates of indebtedness Transfer of an interest in a partnership. 43.4351 43.4351-1 43.4352 43.4352-1 43.4353 43.4353-1 43.4354 Affixing of stamps.. 43.4361 Statutory provisions; affixing of stamps.. Statutory provisions; cross references. SUBPART G.-TAX ON CONVEYANCES Statutory provisions; imposition of tax 43.4361-1 Imposition of tax. SUBPART H.-TAX ON POLICIES ISSUED BY FOREIGN INSURERS 43.4371 Statutory provisions; imposition of tax 43.4371-1 Imposition of tax on policies issued by foreign insurers; scope of tax... SUBPART I.-MISCELLANEOUS PROVISIONS APPLICABLE TO SUBPART J.-ADMINISTRATIVE PROVISIONS APPLICABLE TO DOCUMENTARY STAMP TAXES 43.6001 Statutory provisions; notice or regulations requiring records, statements, and special returns... 43.6001-1 Records of sales and transfers of stock.. 43.6001-2 Rules applicable to clearing houses. 43.6001-4 43.6001-3 Records with respect to foreign insurance policies.. 43.6802-1 Where stamps may be purchased and where requisition forms 43.6804-2 43.6805 43.7208 43.7209 Statutory provisions; redemption of stamps.. Statutory provisions; offenses relating to stamps.. Statutory provisions; unauthorized use or sale of stamps.. 43.7209-1 Use or resale of unused stamps.. 43.7270 43.7271 43.7271-1 43.7701 43.7805 Statutory provisions; insurance policies.. B Statutory provisions; penalties for offenses relating to stamps-- Statutory provisions; definitions.. Statutory provisions; rules and regulations.. 43.7805-1 Promulgation of regulations... AUTHORITY: §§ 43.0-1 to 43.7805-1, incl., issued under sec 1954; 68A Stat. 917; 26 U.S.C. 7805. 7805, I.R.C. DOCUMENTARY STAMP TAXES SUBPART A.-INTRODUCTORY PROVISIONS $43.0-1 INTRODUCTION.—(a) In general.-The regulations in this part relate to documentary stamp taxes imposed by chapter 34 of the Internal Revenue Code of 1954. These regulations constitute Part 43, of Title 26, of the Code of Federal Regulations. References in the regulations to the "Internal Revenue Code" or the "Code" are references to the Internal Revenue Code of 1954, as amended, unless otherwise indicated. (b) Division of regulations.-The regulations in this part (26 CFR Part 43) are divided into 10 subparts. Subpart A contains provisions relating to general definitions and use of terms, the division and scope of the regulations in this part, and the extent to which the regulations in this part supersede prior regulations relating to documentary stamp taxes. Subpart B relates to the tax on issuance of capital stock and similar interests. Subpart C relates to the tax on issuance of certificates of indebtedness. Subpart D relates to the tax on sales or transfers of capital stock and similar interests. Subpart E relates to the tax on sales or transfers of certificates of indebtedness. Subpart F relates to provisions common to sales or transfers of capital stock and certificates of indebtedness. Subpart G relates to the tax on conveyances. Subpart H relates to the tax on policies issued by foreign insurers. Subpart I relates to miscellaneous provisions applicable to documentary stamp taxes. Subpart J relates to selected provisions of subtitle F of the Code, relating to procedure and administration, which have special application to documentary stamp taxes. (c) Arrangement and numbering.-Each section of the regulations is preceded by the section of the Internal Revenue Code which it interprets. Sections of the Code or references thereto are preceded by "Sec." or the word "section". Each section of the regulations is preceded by a section symbol and 43 followed by a decimal point (§ 43.). $43.0-2 GENERAL DEFINITIONS AND USE OF TERMS.-(a) In general. As used in the regulations in this part, unless otherwise expressly indicated (1) The terms defined in the provisions of law contained in the regulations in this part shall have the meanings so assigned to them. (2) The Internal Revenue Code of 1954 means the Act approved August 16, 1954 (68A Stat.), entitled "An Act To revise the internal revenue laws of the United States", as amended. (3) Regulations 71 means the regulations approved November 25, 1941 (26 CFR (1941) Part 113), as amended, relating to stamp taxes on issues and transfers of stocks and bonds, conveyances of realty, passage tickets, and foreign insurance policies. (4) The term "district director" means district director of Internal Revenue. (5) The terms "stamp tax" and "stamp taxes" generally mean any one or all of the stamp taxes which constitute the subject of the regulations in this part. (6) The term "documentary stamps" means all stamps issued for use in payment of the stamp taxes imposed by chapter 34 of the Internal Revenue Code. (7) The cross references in the regulations in this part to other portions of the regulations, when the word "see" is used, are made only for convenience and shall be given no legal effect. (b) Cross reference.-For other definitions, see section 4381, §§ 43.4381-1 and 43.4381-2, and section 7701 (§ 43.7701). $43.0-3 SCOPE OF REGULATIONS.-The regulations in this part have application to all transactions occurring after December 31, 1954. § 43.04 EXTENT TO WHICH THE REGULATIONS IN THIS PART SUPERSEDE PRIOR REGULATIONS.-The regulations in this part, with respect to the subject matter within the scope thereof, supersede Regulations 71. SUBPART B.-TAX ON ISSUANCE OF CAPITAL STOCK AND SIMILAR INTERESTS § 43.4301 STATUTORY PROVISIONS; IMPOSITION of Tax. SEC. 4301. IMPOSITION OF TAX. There shall be imposed a tax on each original issue of shares or certificates of stock, issued by a corporation, whether on organization or reorganization, at the following rates: (1) PAR VALUE STOCK.-Eleven cents on each $100 or fraction thereof of the par or face value of each certificate (or of the shares where no certificate is issued). (2) NO-PAR-VALUE STOCK.— (A) ACTUAL VALUE OF $100 OR MORE PER SHARE.-Eleven cents on each $100 or fraction thereof of the actual value of each certificate (or of the shares where no certificate is issued). (B) ACTUAL VALUE OF LESS THAN $100 PER SHARE.-Three cents on each $20 or fraction thereof of the actual value of each certificate (or of the shares where no certificate is issued). § 43.4301-1 IMPOSITION OF THE TAX ON ORIGINAL ISSUE OF STOCK.(a) Scope of tax.-Section 4301 imposes a tax on each original issue of shares or certificates of stock issued by a domestic corporation. See section 4381(b) and § 43.4381-1(b) and section 4381 (c) and § 43.4381-1 (c), respectively, for definitions of the terms "corporation" and "shares or certificates of stock". Stock is deemed to be issued when it is subscribed for and the subscription is accepted. The tax applies to each original issue of the shares or certificates, whether upon organization, reorganization, or otherwise, regardless of the purpose of the issue, the person to whom issued, or the time of delivery. The tax also applies to shares or certificates issued in a recapitalization where the recapitalization results in the dedication of an amount as capital for the first time (see § 43.4302-1). (b) Rate and computation of tax.-(1) Rate of tax.-The rates of tax are as follows: (i) Par value stock-11 cents on each $100 or fraction thereof of the face value of each certificate; and (ii) No par value stock-11 cents on each $100 or fraction thereof of the actual value of each certificate, where the actual value of each share is $100 or more; and 3 cents on each $20 or fraction thereof of the actual value of each certificate, where the actual value of each share is less than $100. (2) Separate computation.-A separate computation of tax must be made with respect to each certificate regardless of the number of certificates which may be issued in a single transaction. (3) Par value stock.-Where stock has a par value, the tax is measured by the total face value of the certificate and not by the amount paid for the stock. For example, the tax upon the issuance of a certificate for any number from 1 to 100 shares of stock having a par value of $1 a share is 11 cents, since in such case the total face value of the certificate does not exceed $100. The tax on the issuance of a certificate for any number from 11 to 20 shares of stock having a par value of $10 a share, or for any number from 5 to 8 shares of stock having a par value of $25 a share, is 22 cents, since in these cases the total face value of the certificate is more than $100 but does not exceed $200. (4) No par value stock.-(i) Where stock has no par value, the rate of tax is determined by the actual value of each share, and the amount of tax, computed at such rate, is measured by the actual value of the certificate. Thus, in all cases where the actual value of each share is $100 or more, the tax must be computed at the rate of 11 cents on each $100 or fraction thereof of the actual value of the certificate; and in all cases where the actual value of each share is less than $100, the tax must be computed at the rate of 3 cents on each $20 or fraction thereof of the actual value of the certificate. For example, upon the issuance of a certificate for 10 shares having an actual value of $101 a share, or a total actual value of $1,010, the tax, computed at the rate of 11 cents on each $100 or fraction thereof of the actual value of the certificate, amounts to $1.21. Upon the issuance of a certificate for 10 shares having an actual value of $99 a share, or a total actual value of $990, the tax, computed at the rate of 3 cents on each $20 or fraction thereof of the actual value of the certificate, amounts to $1.50. (ii) The actual value of stock not having a par value shall be determined on the basis of the market value of the stock at the time of issuance. In the absence of a market value of the stock, the actual value shall be determined on the basis of all the facts and circumstances of the case. (iii) Stock which has been given a "fixed" or "stated" price, as distinguished from stock having a par value, is taxable as stock without par value. (5) Shares not represented by certificates.-Where the shares are not represented by certificates, the subscription is the basis of tax computation. In the case of shares having a par value, a separate computation of tax must be made with respect to the aggregate par value of the shares covered by each subscription. In the case of shares not having a par value, a separate computation of tax must |