.png){kind=spacer}
What it is
The stock transaction tax (STT) is a type of tax that you must pay each time you’ll sell shares of a company that’s listed on the Philippine Stock Exchange (PSE).
The rate is imposed by the law. Effective July 1, 2025, it has been reduced from 0.60% to 0.10% of the total selling price per transaction.
For example, if you’ll sell 100 shares for P100 each, the tax will be applied to the gross amount of P10,000.
What it means for you
You’ll pay this tax through your broker when selling or transferring shares of a publicly listed company. It’s important to factor this into your calculations of potential investing returns or losses.
This tax, along with other fees and commissions, can eat into what you might earn from selling stocks or add to any loss.
Such taxes and fees should be acceptable to you before you start investing in the stock market.
