REVENUE REGULATIONS (RR) NO. 020-2025
Pursuant to Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended, and in relation to Sections 17 and 25 of Republic Act (RA) No. 12214, otherwise known as the “Capital Markets Efficiency Promotions Act” (CMEPA), these Regulations are hereby promulgated to implement the rate of adjustment of STT and the imposition of it on the sale or exchange of domestic shares of stocks and other securities listed and traded through a foreign exchange, in accordance with the amended Section 127 of the Tax Code.
Key Amendments:
| Particulars | Tax Rate and Base | Effectivity |
| Sale, exchange, or other disposition of shares of stock and other securities of a domestic corporation listed and traded through Local Stock Exchange | 1/10 of 1% (0.1%) of the Gross selling price or Gross value in money of shares of stock/other securities sold, exchanged or disposed | July 1, 2025 |
| Sale, exchange, or other disposition of shares of stock and other securities of a domestic corporation listed and traded through Foreign Stock Exchange | 1/10 of 1% (0.1%) of the Gross selling price or Gross value in money of shares of stock/other securities sold, exchanged or disposed |
Sale or Exchange of shares of stock and other securities listed and traded through a local or foreign stock exchange by a dealer in securities.
- Individuals that are duly licensed dealer in securities by the appropriate government agency who realized gain from the sale, exchange, or disposition of listed shares of stocks and other securities, for the individuals own account, shall be considered ordinary income subject to graduated rates for individual and regular corporate income tax for corporations.
Return on sale of shares of stock and other securities listed and traded in a local or foreign stock exchange.
| Who to Collect/Remit Tax | Stock broker who took effect the sale through Local Stock Exchange |
| When | Within (5) banking days from the date of collection |
| Timing | Submit during Mondays of each week to the secretary of the stock exchange |
| Requirement | Seller/broker should be a memberTrue and complete return declaring all the transactions effected during the preceding week, taxes collected, and turned over to BIR |
Take note: For sale of shares of stock of a domestic corporation listed and traded in foreign stock exchanges, the collection, remittance, and reportorial requirements of the above tax shall be made by the selling shareholder, by himself/herself or through a stockbroker, or authorized representative on behalf of the selling shareholder. The remittance of said tax should be made not exceeding (10) banking days from the date of collection.
Effect of Non-payment of Tax
- No transfer of ownership shall take place on the registered books of the corporation unless the receipts of payment of the tax are filed with and recorded by stock transfer agent or secretary to the books of the corporation.
- It shall be the duty of the aforesaid persons to inform the BIR in case of non-payment of tax.
- Any stock transfer agent or secretary who violates the requirements shall be punished in accordance with the applicable provision of Title X of the Tax Code.
These Regulations shall take effect on July 1, 2025, following its publication in the Official Gazette or BIR’s official website, whichever comes first.