The Philippine Securities and Exchange Commission welcomed the enactment of the Capital Markets Efficiency Promotion Act (Republic Act No. 12214), which President Ferdinand R. Marcos, Jr. signed on May 29, describing it as a package of tax reforms intended to make capital market investing more accessible and to encourage wider participation by local and foreign investors. Key measures cited include cutting the stock transaction tax to 0.1% from 0.6% and reducing documentary stamp tax on the original issue of shares to 0.75% from 1%. The law also removes documentary stamp tax on mutual funds and unit investment trust funds and exempts income from the redemption of such units, standardizes the final withholding tax on interest income at 20%, and harmonizes capital gains tax to a flat 15% on shares of foreign corporations. For retirement saving, it enables employers to claim an additional 50% tax deduction for Personal Equity and Retirement Account contributions under Republic Act No. 9505, provided the employer matches or exceeds the employee contribution.
Philippine Securities and Exchange Commission 2025-06-03
Philippine Securities and Exchange Commission welcomes Capital Markets Efficiency Promotion Act lowering transaction taxes and expanding long term investment incentives
The Philippine Securities and Exchange Commission announced the Capital Markets Efficiency Promotion Act, signed by President Ferdinand R. Marcos, Jr., to enhance market accessibility via tax reforms. Measures include reducing the stock transaction tax to 0.1%, lowering the documentary stamp tax to 0.75%, and removing taxes on mutual funds. The law standardizes the final withholding tax on interest income at 20% and harmonizes the capital gains tax to 15% on foreign shares, while offering additional tax deductions for retirement savings.