Philippine Stock Exchange, Taguig City
July 1, 2025
“Today, we usher in a new phase of economic opportunity for every Filipino,” remarked President Ferdinand R. Marcos Jr. when he led the special bell-ringing ceremony at the Philippine Stock Exchange (PSE) to mark the effectivity of Republic Act (R.A.) No. 12214 or the Capital Markets Efficiency Promotion Act (CMEPA).
In his speech delivered at the PSE Tower in Bonifacio Global City (BGC), the President emphasized that CMEPA, which he signed into law last May, is a timely and strategic tax reform that redefines and transforms how Filipinos invest, build and grow their hard-earned savings.
Before its enactment, investing in stocks meant paying a tax of O.6% which is six (6) times higher than the Philippines’ neighbors in Singapore and Malaysia, and the highest in the Association of Southeast Asian Nations (ASEAN). Under CMEPA, that rate has been reduced to just 0.1%.
He further explained that for a first-time investor buying a PhP10,000 worth of stock, this means paying PhP10 in tax instead of PhP60 — a move aimed at encouraging more Filipinos to invest in the country’s capital market.
The Law also removed the Documentary Stamp Tax (DST) on mutual funds and unit investment trust funds, which are investment tools widely used by young professionals and middle-class savers, as well as introduced a uniform final tax rate of 20% on interest income, simplifying compliance, removing confusion and leveling the playing field.
Furthermore, it offers incentives for companies that help employees save for retirement. Private employers that match or exceed their workers’ contributions to the Personal Equity and Retirement Accounts (PERA) are now entitled to an additional 50% tax deduction on their actual contributions.
“At the same time, CMEPA removed certain exemptions to enhance fairness in our tax system. Government-Owned or Controlled Corporations are now generally subject to the same passive income taxes as other institutions,” the Chief Executive said, adding that beginning now until 2030, CMEPA is projected to generate over PhP25 billion in net revenue — a substantial sum that could help fund roads, bridges, hospitals, schools and other social safety net programs.
“But beyond revenue, CMEPA reinforces confidence. It shows that our financial system is becoming more equitable and structured for long-term stability… It empowers the small business owner, the young professional, and the overseas Filipino worker to start investing their hard-earned money to build a better future,” he continued.
The President underscored that CMEPA enhances the country’s competitiveness in the ASEAN and strengthens the foundations of a capital market that can thrive on the global stage. He also acknowledged all legislators for passing the landmark law.
To ensure the successful implementation of this reform, he directed the Securities and Exchange Commission (SEC) to streamline its procedures, remove bureaucratic bottlenecks and reduce transaction costs within its control. All the same, he urged all market participants and stakeholders to uphold transparency, fairness and good governance.
“By working together in good faith, we can build an industry that earns the market’s trust both here and abroad… Let every ring — from this morning and every trading day thereafter — echo our strength, our optimism, [and] our shared hope for a more prosperous future for all Filipinos,” President Marcos Jr. ended in his speech.
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