President Ferdinand Marcos Jr. signed the Capital Markets Efficiency Promotion Act into law, aiming to simplify tax rules and lower stock trading costs to make investing more accessible.
The law cuts the stock transaction tax from 0.6% to 0.1% and removes documentary stamp taxes on mutual funds and UITFs, making them more attractive to investors.
It also introduces a flat 20% withholding tax on interest income and a 15% tax on profits from trading foreign shares.
While Marcos vetoed three provisions—removing tax exemptions on foreign currency deposits, taxing lottery winnings, and repealing housing loan incentives—key reforms in the law remain intact.
The law also boosts the Personal Equity and Retirement Account (PERA) program by offering tax deductions to employers who match employee contributions, with projections of PERA assets reaching P140.6 billion by 2034.
Source: PhilNews24 | May 31, 2025
