The Philippine Stock Exchange said the reduction to 0.1 percent of stock transaction tax from 0.6 percent may start taking effect for shares traded on July 1.
In a circular the PSE posted on its website late Wednesday, the stock exchange noted that based on the Capital Markets Efficiency Promotion Act’s (CMEPA or RA12214), the law shall take effect on the same date after its publication in the government’s Official Gazette.
“On the premise that publication of CMEPA will be completed before July 1, 2025, the STT of one-tenths of one percent (1/10 of 1 percent) shall apply to transactions through the Exchange made on July 1, 2025 onwards.”
Signed into law in late May, CMEPA aims to simplify and standardize taxation on interest income and royaltie.
It also calls for the lowering of the documentary stamp tax on certain stock market deals and the tax exemption on income derived from unit investment trust funds.
The PSE on Sunday expressed optimism that the tax cuts embodied under CMEPA will encourage investment activity through the stock market for the remainder of 2025.
