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What taxes do I pay when I purchase a stock?


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2024-05-23 14:31:36

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) 125.00
VAT(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  P147.50

For 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)  15.00
Stock 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