Author MRTC

Introduction

REVENUE MEMORANDUM CIRCULAR (RMC) NO. 060-2025

For the guidance of all internal revenue officials and employees, attached as Annexes “A” and “B” are copies of Republic Act (RA) No. 12214, otherwise known as the Capital Markets Efficiency Promotion Act (CMEPA), and the Veto Message of President Ferdinand R. Marcos Jr., both signed on May 29, 2025.

Key highlights of CMEPA

1. Standardized 20% Final Withholding Tax (FWT) on interest income

    Before RA No. 12214RA No. 12214
    Interest income:From regular savings, time deposits and peso bonds – 20% FWTFrom Foreign Currency Depository Unit (FCDU) banks of individual residents – 15% FWTFrom FCDU banks on non-residents – exemptFrom Long-term investment (5+ years) – exempt, but subject to tax if pre-terminated depending on the remaining maturity:  Remaining MaturityApplicable Rate4 to less than 5 yrs.
    3 to less than 4 yrs.
    Less than 3 yrs.    		All interest income from deposits are taxed at 20% FWT rate No more exemption even for 5-year BSP certified long-term time deposits No retroactive taxation on existing deposits. The new tax rate applies only to interest earned from deposits made on or after July 1, 2025The unified 20% tax rate does not apply to contributions and earnings in socialized savings plans under government funds such as Social Security System (SSS), Government Service Insurance System (GSIS), Home Development Mutual Fund (HDMF)

    2. Stock Transaction Tax (STT) of 0.60% of the Gross Selling Price (GSP) is reduced to 0.10% of GSP

    3. On sale of shares

    Type of sharesBefore RA No. 12214RA No. 12214
    Unlisted and untraded sharesSale of unlisted domestic shares not traded thru local stock exchange – 15% Capital Gains Tax (CGT)Sale of unlisted domestic or foreign shares not traded thru local or foreign stock exchange – 15% CGT
    Listed and traded sharesThe following are subject to STT:Sale or exchange of shares of stock listed and traded through local stock exchangeInitial Public Offering (IPO)Sale of shares of stock and other securities listed and traded through local or foreign stock exchange is subject to STT. STT on IPO is deleted.
     

    1. Documentary Stamp Tax (DST)

    Type of sharesBefore RA No. 12214RA No. 12214
    Original issuance of shares of stockSubject to 1% of the par value or actual consideration75% of 1% of the par value or actual consideration
    Original Issuance of debt instruments0/75% of the par value or actual consideration75% of 1% of the issue price
    Original issuance, redemption or transfer of mutual fund shares, certificates or proof of participation in mutual funds or investment trust fundsSubject to 1% of the par value or actual considerationExempt from DST
    DST on bonds, debentures and certificates of stock or indebtedness issued in foreign countriesShares with par – 0.75%
    Shares without par – 0.50%
    Debt – Exempt    		0.75% of the value of the transaction

    2. Employers contributing to their employees’ Personal Equity and Retirement Account (PERA) may now claim an additional deduction of 50%, as long as they match or exceed the employee contribution. However, this is subject to the maximum allowable contribution of ₱100,000 or its equivalent in any convertible foreign currency, for local employees.

    1. Items vetoed by the President:
      1. Tax exemption on income from FCDU for nonresidents – retained
      2. Proposed DST on bettors of PCSO games – rejected
      3. PHILGUARANTEE Tax exemptions – preserved

    Please note that RA No. 12214 will take effect on July 1, 2025, following its full publication in the Official Gazette or in at least one newspaper of general circulation, as required by Section 29 of the law.


    Link to Annex A: RMC NO. 60-2025 Annex A.pdf
    Link to Annex B: RMC NO. 60-2025 Annex B.pdf