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What fees do I have to pay?
FOR THE BUYER Philippine Stock Exchange (PSE) fees equivalent to 0.005% of the gross amount. Gross amount refers to the number of shares bought multiplied by the price per share. Securities Clearing Corporation of the Philippines (SCCP) fees equivalent to 0.01% of the gross amount. Broker's Commission of 0.25% based on the total gross value of the shares purchased or a minimum of Php20.00. Value Added Tax (VAT) equivalent to 12% of the broker's commission. FOR THE SELLER Stock Transaction Tax (Final Withholding Tax withheld by the Broker) equivalent to 0.5% of the gross selling proceeds. Gross selling proceeds refer to total number of shares sold multiplied by price per share. Transaction fees equivalent to 0.005% of the gross selling proceeds bought. Securities Clearing Corporation of the Philippines (SCCP) fees equivalent to 0.01% of the gross selling proceeds. Broker's Commission of 0.25% based on the total gross selling proceeds or a minimum of Php20.00. Value Added Tax (VAT) equivalent to 12% of the broker's commission. To illustrate how these fees are applied and computed, click HERE to go to the Rates and Fees section of the website.
Philippine Stock Exchange (PSE) fees equivalent to 0.005% of the gross amount. Gross amount refers to the number of shares bought multiplied by the price per share.
Securities Clearing Corporation of the Philippines (SCCP) fees equivalent to 0.01% of the gross amount.
Broker's Commission of 0.25% based on the total gross value of the shares purchased or a minimum of Php20.00.
Value Added Tax (VAT) equivalent to 12% of the broker's commission.
Stock Transaction Tax (Final Withholding Tax withheld by the Broker) equivalent to 0.5% of the gross selling proceeds. Gross selling proceeds refer to total number of shares sold multiplied by price per share.
Transaction fees equivalent to 0.005% of the gross selling proceeds bought.
Securities Clearing Corporation of the Philippines (SCCP) fees equivalent to 0.01% of the gross selling proceeds.
Broker's Commission of 0.25% based on the total gross selling proceeds or a minimum of Php20.00.
Is there a preferential tax rate/ tax relief for non-resident clients?
If there is an existing tax treaty between the Philippines and the country where the other party to the transaction resides, the applicable preferential tax rates under the treaty shall apply. Conversely, in the absence of such treaty, the ordinary rates under Philippine tax laws particularly the Philippine Tax Code of 1997 shall apply. Any availment of the tax treaty relief shall be preceded by an application covered by BIR Form No. 0901 ("Application for Relief from Double Taxation"). The application shall be filed at least fifteen (15) days before the proposed transaction. It shall be accompanied by supporting documents justifying the relief.
If I'm a Philippine citizen and I received a cash or property dividend from a domestic corporation, what will be my applicable dividend tax?
If you're an individual Philippine citizen and you received a cash or property dividend from a domestic corporation, you are subject to a final withholding tax of 10% on the gross amount of dividends received.
If I'm a foreigner residing in the Philippines and I received cash or property dividend from a domestic corporation, what will be my applicable dividend tax?
If you're a resident alien and you received cash or property dividend from a domestic corporation, you are subject to a final withholding tax of 10% on the gross amount of dividends received.
If I'm a non-resident alien engaged in trade or business in the Philippines and I received cash or property dividend from a domestic corporation, what will be my applicable dividend tax?
If you're a non-resident alien engaged in trade or business in the Philippines and you received cash or property dividend from a domestic corporation, you are subject to a final withholding tax of 20% on the gross amount of dividends received.
If I'm a non-resident alien not engaged in trade or business in the Philippines and I received cash or property dividend from a domestic corporation, what will be my applicable dividend tax?
If you're a non-resident alien not engaged in trade or business in the Philippines and you received cash or property dividend from a domestic corporation, you are subject to a final withholding tax of 25% on the gross amount of dividends received.
What is the applicable dividend tax for a domestic or resident foreign corporation?
Cash and property dividends received by a domestic or resident foreign corporation are not subject to tax.
What is the applicable dividend tax for a non-resident foreign corporation?
Cash and property dividends received from a domestic corporation by a non-resident foreign corporation are subject to final withholding tax of 35%. The 35% rate for dividends paid to a non-resident foreign corporation may be reduced to 15% subject to the conditions that the country in which the non-resident foreign corporation is domiciled allows a credit against the tax due from the non-resident foreign corporation, taxes deemed to have been paid in the Philippines equivalent to 20%, which represents the difference between the regular tax on corporations and the reduced tax on dividends.
What is the applicable dividend tax rate for a foreign corporation or an individual that is a resident of a treaty country?
In the case of a foreign corporation or an individual who is a resident of a treaty country, the applicable tax rate on dividends under the treaty shall apply.
What is the applicable tax for stock dividends?
Stock dividends distributed pro rata among stockholders of the same class are not subject to Philippine income tax but shall be subject to a documentary stamp tax on the original issue of the share at the rate of P2.00 for every P200.00 or a fraction thereof based on the par value of the share, which is paid for by the corporation declaring the stock dividend.
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