If you are a Philippine citizen or a resident foreigner, you are subject to a final withholding tax of 10% on the gross amount of dividends received.If you are a non-resident foreigner engaged in trade or business in the Philippines, you are subject to a final withholding tax of 20% on the gross amount of dividends received.If you are a non-resident foreigner not engaged in trade or business in the Philippines, you are subject to a final withholding tax of 25% on the gross amount of dividends received.

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.

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.To Illustrate:Client buys 1,000 BPI shares at P50 (Par value is P5.00)Gross Amount of his purchase is P50,000.The applicable fees for this transaction are:Commissions(0.25% of P50,000)125.00VAT(12% of P125)15.00 Transaction fees(0.005% of P50,000) 2.50 SCCP fees(0.01% of P50,000) 5.00 TOTAL BUYER FEES P147.50For The Seller:Stock Transaction Tax (Final Withholding Tax withheld by the Broker) equivalent to 0.6% of the gross selling proceeds. Gross selling proceeds refer to total number of shares sold multiplied by the 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:Client sells 1,000 BPI shares at P50 (Par value is P5.00)Gross selling proceeds of his sale is P50,000.The applicable fees for this transaction are:Commissions(0.25% of P50,000)125.00 VAT(12% of P125) 15.00Stock Transaction Tax (50,000 x 0.6%)300.00 Transaction fees(0.005% of P50,000) 2.50 SCCP fees(0.01% of P50,000) 5.00 TOTAL SELLER FEES P447.50

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.

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.

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.

No, we do not charge any monthly/annual fee. We only charge when you buy or sell a stock. The Broker’s Commission consists of 0.25% of the total gross value of shares or minimum of Php20.00 whichever is higher.

Margin Trading can amplify gains as well as losses. While buying on margin can potentially pump up your profits and boost your purchasing power, utilizing it comes with very steep risks. If portfolio value falls considerably, you may have to deal with margin calls, additional equity might be demanded on short notice or else face a forced liquidation. Once stocks are sold after prices have plummeted, you’ve lost out on the chance to recoup your losses.