How are stocks taxed in the Philippines?
How your stock profits are taxed in the Philippines depends entirely on one thing: whether the shares are listed and traded on the Philippine Stock Exchange (PSE) or not. Listed shares sold through the PSE are subject to a stock transaction tax (STT) of 0.1% on the gross selling price, which is a final tax. Shares that are not traded on the exchange (unlisted shares) are subject to a 15% capital gains tax (CGT) on the net gain. Separately, cash and property dividends you receive are subject to a 10% final tax for resident citizens and resident aliens.
This guide reflects the rules after the Capital Markets Efficiency Promotion Act (CMEPA), Republic Act No. 12214, which took effect on July 1, 2025. CMEPA cut the STT from 0.6% to 0.1% and harmonized several investment taxes, so older articles citing 0.6% are now out of date. For broader context, see our capital gains tax guide and the withholding tax overview.
Tax on PSE-listed stocks: the 0.1% stock transaction tax
If you buy and sell shares of listed companies like Jollibee Foods Corporation, BDO, or Ayala Corporation through your online broker (COL Financial, BPI Trade, First Metro Sec, etc.), you do not compute or file any income tax or capital gains tax on the profit. Instead, every time you sell, a final stock transaction tax of 1/10 of 1% (0.1%) of the gross selling price is withheld and remitted to the Bureau of Internal Revenue (BIR) by your broker. It applies whether you gained or lost money, because it is based on the selling price, not the profit.
Because it is a final tax, your listed-share gains are never added to your annual income tax return, and your broker handles all filing. You file no BIR form for STT yourself.
Worked example: Maria sells listed shares
Maria, a marketing manager in Makati, bought 1,000 shares of a PSE-listed company at ₱90 (₱90,000) and sells them a year later at ₱110 (₱110,000 gross selling price).
- Stock transaction tax: ₱110,000 × 0.1% = ₱110
- Her broker also charges commission, VAT on commission, SCCP and PSE fees (typically around 0.25%–0.30% all-in on each leg), but the only tax on the sale itself is the ₱110 STT.
- Maria reports nothing on her income tax return for this trade. The ₱110 is final and final means done.
Under the old 0.6% rate, that same sale would have cost ₱660 in STT. CMEPA's reduction to 0.1% is a direct saving of ₱550 on this single trade, which is the reform's headline benefit for retail investors.
Tax on unlisted shares: 15% capital gains tax
If you sell shares in a company that is not listed on the PSE, for example, your stake in a family corporation or a private startup, the rules are completely different. You pay a 15% capital gains tax on the net capital gain (selling price or fair market value, whichever is higher, minus your acquisition cost and selling expenses). This applies to shares of both domestic and, after CMEPA, foreign corporations.
Unlike listed shares, this is not handled by a broker. You must file and pay it yourself using our capital gains tax calculator to estimate the amount first, then:
- BIR Form 1707 (Capital Gains Tax Return for shares not traded through the local stock exchange), filed within 30 days from each sale.
- BIR Form 1707-A (Annual CGT Return), filed by April 15 of the following year, consolidating all unlisted-share sales.
- Documentary stamp tax (DST) of ₱1.50 per ₱200 of the par value of the shares transferred (filed via BIR Form 2000-OT). Note: sales of listed shares through the exchange are DST-exempt; only unlisted transfers pay this.
Worked example: Juan sells his stake in a private corporation
Juan from Cebu owns shares in a private logistics corporation. He acquired them for ₱500,000 and sells them for ₱800,000.
- Net capital gain: ₱800,000 − ₱500,000 = ₱300,000
- Capital gains tax (15%): ₱300,000 × 15% = ₱45,000
- He files Form 1707 within 30 days and pays the ₱45,000.
- If the par value of his shares is ₱200,000, his DST is ₱200,000 ÷ ₱200 × ₱1.50 = ₱1,500, computed with our documentary stamp tax calculator.
How are stock dividends and cash dividends taxed?
When a listed or unlisted Philippine company pays you a cash or property dividend, a 10% final withholding tax applies if you are a resident citizen or resident alien. The company withholds it before the dividend hits your account, so the amount you receive is already net of tax, and you report nothing further. Non-resident aliens engaged in trade or business are taxed at 20%, and those not so engaged at 25%.
Stock dividends (additional shares issued pro-rata instead of cash) are generally not subject to income tax at the time of receipt, because they merely represent a reallocation of existing equity. Tax is only triggered later when you sell those shares.
Example: Ana holds shares in a PSE-listed bank that declares a ₱10,000 cash dividend. The bank withholds ₱1,000 (10%) and credits ₱9,000 to her account. Ana files nothing; the ₱1,000 is final.
Information gain: where stock taxes connect to the rest of CMEPA (and what is still tax-free)
Most stock-tax articles stop at STT and CGT. But CMEPA reshaped passive investment income broadly, and stock investors usually hold cash and deposits too, so the full picture matters:
| Investment / income | 2026 tax treatment (post-CMEPA) |
|---|---|
| Sale of PSE-listed shares | 0.1% stock transaction tax (final) |
| Sale of unlisted shares | 15% capital gains tax on net gain |
| Cash/property dividends (residents) | 10% final tax |
| Bank deposit & time-deposit interest | 20% final tax (long-term exemption removed) |
| Original issuance of shares (DST) | 0.75% of par/issue value |
| Pag-IBIG MP2, SSS, GSIS savings | Tax-free (confirmed by Department of Finance) |
The big change for savers: CMEPA removed the income-tax exemption that long-term time deposits (5+ years) used to enjoy, so new long-term deposits now face the flat 20% final tax on interest. Crucially, instruments entered into before July 1, 2025 keep their old treatment until maturity. Meanwhile, the Department of Finance has explicitly confirmed that Pag-IBIG MP2, SSS, and GSIS savings remain tax-free, making MP2 one of the few genuinely untaxed yield vehicles left for Filipino investors.
Do I need to register with the BIR or report my stock gains?
This is the tax-core question every investor asks. For listed shares, no separate registration or reporting is needed for the trade itself; the broker's STT remittance is your full compliance. For unlisted shares, you must have a TIN and file Forms 1707 and 1707-A yourself. If you are also a freelancer, business owner, or professional, your trading does not change your normal income tax obligations; capital and dividend income on stocks stays under final-tax rules and is not lumped into your graduated or 8% computation. New to BIR processes? Start with our guides on how to get a TIN and BIR registration, and self-employed investors can review the self-employed taxpayer guide.
Key deadlines and forms at a glance
- Listed shares: STT 0.1%, withheld by broker, no form, no deadline for you.
- Unlisted shares: Form 1707 within 30 days of sale; Form 1707-A by April 15 next year.
- DST on unlisted transfers: Form 2000-OT, ₱1.50 per ₱200 par value, by the 5th day of the following month.
- Dividends: 10% withheld at source, no action needed.
Always verify current rates against the BIR before filing, since rates can change with new Revenue Regulations. For deeper persona-specific guidance, see our small business and OFW investor resources.
Sources and References
The rates, thresholds, and rules on this page are drawn from official Philippine government issuances and reputable tax references. Tax rules change; always confirm current figures with the relevant agency before acting.
- Revenue Regulations No. 20-2025 Digest (STT 0.1% effective July 1, 2025) — Bureau of Internal Revenue
- Republic Act No. 12214 (CMEPA) - signed law text — Bureau of Internal Revenue
- Philippines - Legislation on Capital Markets Brings Tax Changes for Individuals (CGT 15% unlisted incl. foreign; dividends 10%; interest 20%) — KPMG
- Implementation of the Revised Documentary Stamp Tax Rates and Exemptions under CMEPA (original issuance 0.75%; transfer P1.50/P200 unchanged; listed-share sales DST-exempt) — Grant Thornton Philippines
- CMEPA tax rules not applicable to SSS, GSIS, Pag-IBIG savings - DoF — BusinessWorld
- CMEPA: A new era for investment taxation — PwC Philippines