RR No. 20-2025: Implementing the Rate Adjustment of Stock Transaction Tax (STT) and the Imposition of the STT on the Sale of Exchange of Domestic Shares of Stocks and Other Securities Listed and Traded Through a Foreign Stock Exchange Under Section 17 of Republic Act No. 12214, Otherwise Known as the “Capital Markets Efficiency Promotion Act”

Key points

1. Rate and base. The STT is 1/10 of 1% (0.1%) of the gross selling price or gross value in money, effective July 1, 2025. It applies to shares and securities listed and traded through a local stock exchange, and to those of a domestic corporation listed and traded through a foreign stock exchange. It is in lieu of capital gains tax and excludes sales by a dealer in securities.
2. Dealers in securities. Gains of a licensed dealer in securities, for its own account in the ordinary course of business, are ordinary income. They are taxed at graduated rates for individuals and at regular corporate income tax for corporations.
3. Local exchange collection. The stock broker collects the tax and remits it to the BIR within five (5) banking days from collection. Each Monday the broker submits to the stock exchange secretary a return of the prior week’s transactions and taxes collected.
4. Foreign exchange collection. For domestic shares traded on a foreign exchange, the selling shareholder collects and remits the tax, by self, the stock broker or an authorized representative. Remittance is made within ten (10) banking days from collection.
5. Registration of transfers. No share transfer is registered in the corporation’s books unless the payment receipt is filed with and recorded by the stock transfer agent or corporate secretary. Those who register a transfer in violation are punished under Title X of the Tax Code.

Who is affected

• Sellers of listed shares and securities
• Stock brokers
• Selling shareholders of domestic shares listed on a foreign stock exchange
• Stock transfer agents and corporate secretaries

Deadlines and effectivity

• STT effective July 1, 2025
• Local exchange remittance: within five (5) banking days from collection
• Foreign exchange remittance: within ten (10) banking days from collection