The Philippine Stock Exchange (PSE) announced it will slash the stock transaction tax (STT) to 0.1 percent from the current 0.6 percent starting 1 July 2025, in line with the implementation of the Capital Markets Efficiency Promotion Act (CMEPA).
In a circular, the bourse confirmed that the lower rate will apply to all transactions on the exchange, assuming full publication of the law before 1 July. The reform is expected to enhance the PSE’s competitiveness in the region, where it previously bore one of the highest trading friction costs among ASEAN markets.
“This is a major step toward deepening market liquidity and attracting more investors,” the PSE said, noting that CMEPA provides a more defined tax regime not only for equities but also for other securities traded on the exchange.
The law also includes other capital market-friendly provisions, such as a reduction in documentary stamp tax on newly issued shares (to 0.75 percent of par value from 1 percent) and tax incentives to promote retirement account contributions, signaling broader support for long-term market development.
