Tax on interest, dividends, shares and property

Most investment income in the Philippines is taxed with a final tax. The bank, broker or company withholds it, and you do not add the income to your annual return.

Since 1 July 2025 all bank deposit interest is taxed at 20 %, including dollar deposits that used to be taxed at 15 %. Cash dividends from Philippine companies are taxed at 10 %.

When you sell shares on the Philippine Stock Exchange, you pay a stock transaction tax of 0.1 % of the selling price, down from 0.6 % before July 2025. Gains on shares not listed on an exchange are taxed at 15 %.

Selling land or a house you hold as a personal asset is taxed at 6 % of the selling price or the zonal or assessor's value, whichever is higher. The gain or loss does not matter.

• You are a resident citizen. Rates for non-resident aliens and corporations differ.
• Interest and dividends are the gross amounts before the bank or company withholds the final tax.
• For 2025, choose whether the income or sale was before or after 1 July 2025, when CMEPA took effect. Deposits and instruments issued before that date keep their old rate until maturity, including tax-exempt long-term deposits.
• Listed shares: enter the gross selling price. The 0.1 % stock transaction tax applies whether you gain or lose.
• Unlisted shares: enter the net gain, selling price minus cost. Real property: enter the selling price or the zonal or assessor's value, whichever is higher.
• The sale of your principal residence can be exempt from the 6 % tax if you buy or build a new one within 18 months. This exemption is not applied.
• Final taxes are not added to income taxed at graduated rates and do not need an annual return, except unlisted shares and real property, which have their own returns.

How much tax is taken from my savings account interest?

Twenty percent, withheld by the bank before the interest reaches your account. If you earn ₱1,000 interest, you receive ₱800.

Do I pay tax when I sell stocks at a loss?

Yes, for listed shares. The 0.1 % stock transaction tax is based on the selling price, not on the gain, so it applies even at a loss.

What changed with CMEPA?

From 1 July 2025 the stock transaction tax fell from 0.6 % to 0.1 %, interest on foreign currency deposits rose from 15 % to 20 %, and new long-term deposits lost their tax exemption.

Is capital gains tax on property based on my profit?

No. It is 6 % of the selling price or the zonal or assessor's value, whichever is higher, even if you sell at a loss.

• www.bir.gov.ph/CMEPA
• lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
• bir-cdn.bir.gov.ph/local/pdf/Digest%20RR%208-2018_copy.pdf
• www.bir.gov.ph/income-tax
• www.grantthornton.com.ph/insights/articles-and-updates1/tax-notes/key-highlights-of-capital-markets-efficiency-promotion-act-cmepa
• www.officialgazette.gov.ph/2017/12/19/republic-act-no-10963