Philippines Enacts Law Reducing Stock Transaction Tax

Philippines enacts law reforming capital markets by modernizing the tax system on passive income, Finance Secretary Ralph Recto says in statement.

• New legislation standardizes tax on interest income at 20% to promote equity and eliminate tax arbitrage
• Law also reduces stock transaction tax to 0.1% from 0.6%, and cuts documentary stamp tax (DST) on the original issue of shares of stock to 0.75% from 1%
• Legislation also exempts from DST the original issuance, redemption, or transfer of mutual fund shares, as well as certificates or proof of participation in mutual funds or investment trust funds
• The law known as Capital ...