The Philippine Securities and Exchange Commission published a press release on the enactment of Republic Act No. 12214, the Capital Markets Efficiency Promotion Act, describing tax measures intended to boost participation in the Personal Equity and Retirement Account (PERA) retirement savings programme and reduce costs for capital market transactions. A central change for retirement savings is a 50% additional tax deduction for private employers that contribute an amount equal to or greater than their employees’ PERA contributions. PERA, established under Republic Act No. 9505, is a voluntary retirement savings programme that offers tax benefits beyond other retirement investment products. Beyond PERA-related incentives, the SEC highlighted CMEPA’s broader tax changes, including a reduction in the stock transaction tax to 0.1% from 0.6% and a cut in the documentary stamp tax on the original issuance of shares to 0.75% from 1% of par value, aimed at supporting initial public offerings and follow-on equity listings. The law also standardizes the final withholding tax on interest income at 20% and harmonizes the capital gains tax to a flat 15% on shares of foreign corporations.
Philippine Securities and Exchange Commission 2025-07-21
Philippine Securities and Exchange Commission highlights CMEPA tax incentives including a new PERA employer deduction and a 0.1% stock transaction tax
The Philippine Securities and Exchange Commission announced Republic Act No. 12214, the Capital Markets Efficiency Promotion Act, introducing tax measures to boost Personal Equity and Retirement Account (PERA) participation and reduce capital market costs. Changes include a 50% tax deduction for employers matching PERA contributions, a stock transaction tax reduction to 0.1%, and a documentary stamp tax cut on share issuance to 0.75%. The law standardizes the final withholding tax on interest income at 20% and sets a 15% capital gains tax on foreign corporation shares.