On Jun. 11, 2025, PHI EXC published an advisory on the reduction in stock transaction tax from 0.6% to 0.1% in accordance with the enactment of CMEPA, described above.
As per section 29 of CMEPA, the law will take effect on Jul. 1, 2025, provided it has been fully published in Official Gazette or at least 1 major newspaper before that date.
STT of 0.1% will apply to transactions through PHI EXC made on Jul. 1, 2025 onwards.
On Jun. 3, PHI SEC welcomed the act to lower transaction tax.
PHI SEC welcomed enactment of Capital markets efficiency promotion act (CMEPA).
Reduction of the stock transaction tax (STT) from 0.6% to 0.1%, and the lowering of the documentary stamp tax (DST) on the original issue of shares from 1% to 0.75%.
Removal of the DST on mutual funds and unit investment trust funds (UITFs).
Tax exemption on income derived from the redemption of mutual funds and UITFs.
Standardizes the final withholding tax on interest income at 20%.
Harmonization of capital gains tax to a flat 15% on shares of foreign firms aligns Philippine tax regime with global standards, helps attract more foreign investments.
Employers may claim an additional 50% tax deduction for personal equity and retirement account contribution, if they match or exceed the employee’s contribution.
Jun. 2025 PHI EXC Advisory on STT
On Jun. 11, 2025, PHI EXC published an advisory on the reduction in stock transaction tax from 0.6% to 0.1% in accordance with the enactment of CMEPA, described above.
As per section 29 of CMEPA, the law will take effect on Jul. 1, 2025, provided it has been fully published in Official Gazette or at least 1 major newspaper before that date.
STT of 0.1% will apply to transactions through PHI EXC made on Jul. 1, 2025 onwards.
