New Tax Rules. Smarter Investing.

Starting July 1, 2025, the Capital Market Efficiency Promotion Act (CMEPA) will take effect. It modernizes the way investments are taxed in the Philippines. Whether you’re a depositor, investor, or both, here’s what you need to know:

 

What’s Changing:

  • Stock transaction tax lowered from 0.6% to 0.1%
  • Flat 20% tax on all interest income, including bank deposits
  • 15% capital gains tax now applies to unlisted and foreign shares
  • Simplified rules on mutual funds, REITs, and UITFs
  • DST on share issuance reduced to 0.75%
Transaction TypeCurrent TaxTax Effective July 1, 2025
Interest Income of a Resident Investor under the Foreign Currency Deposit15% final tax20% final tax
Peso long-term deposits & bonds (over 5 years)Exempt

20% final tax

(For those issued before July 1, 2025, still exempt)

Gains from redemption of UITF or mutual fundsExempt (mutual funds only)Exempt (mutual funds & UITFs)
DST on UITF/mutual fund participation certificatesPhp30.00 per certificateExempt
DST on UITF share issuance/redemption/dispositionPhp2.00 / Php200.00 (fractional)Exempt
Stock Transaction Tax (“STT”) – local exchange0.6% (of the gross selling price or gross value in money of the shares of stock sold, exchanged, or otherwise disposed)0.1% (of the gross selling price or gross value in money of the shares of stock sold, exchanged, or otherwise disposed)
STT on domestic stocks listed abroadNot applicable0.1% (of the gross selling price or gross value in money of the shares of stock sold, exchanged, or otherwise disposed of)

These reforms aim to:

  • Lower investor costs
  • Align our markets with global standards
  • Expand participation across more Filipinos

 

How this affects you:

CMEPA brings more predictability, fairness, and efficiency to investing—whether you’re growing your money through deposits, funds, or stocks.

 

Questions?

Contact your EastWest Relationship Manager or visit your nearest EastWest Store.