Fees, commissions, and taxes in GStocks PH
Standard taxes when buying/selling a stock
Below are the fees and taxes applicable when buying/selling a stock. Note that the gross amount refers to the total number of shares bought/sold multiplied by the price per share.
| For Buyers | |
| Philippine Stock Exchange (PSE) transaction fees | 0.005% of the gross trade amount |
| Securities Clearing Corporation of the Philippines (SCCP) fees | 0.01% of the gross trade amount |
| Broker's Commission | 0.25% based on the total gross amount or a minimum of PHP 20, whichever is higher |
| Value Added Tax (VAT) | 12% of the broker's commission |
| For Sellers | |
| Stock Transaction or Sales Tax (Final Withholding Tax withheld by the Broker) | 0.6% of the gross selling proceeds |
| Philippine Stock Exchange (PSE) transaction fees | 0.005% of the gross selling proceeds bought |
| Securities Clearing Corporation of the Philippines (SCCP) fees | 0.01% of the gross selling proceeds |
| Broker's Commission | 0.25% based on the total gross selling proceeds or a minimum of PHP 20, whichever is higher |
| Value Added Tax (VAT) | Equivalent to 12% of the broker's commission |
Here's an example of how to compute these fees. Note that this sample is only illustrative and is not a recommendation.
- Client buys 1,000 BPI shares at PHP 50 (Par value is PHP 10)
- Gross amount of his purchase is PHP 50,000
The applicable fees for this transaction are:
| Transaction fees | PHP 2.50 |
| SCCP fees | PHP 5.00 |
| Commissions | PHP 125.00 |
| VAT | PHP 15.00 |
- Client sells 1,000 BPI shares at PHP 50 (Par value is PHP 10)
- Gross selling proceeds of his sale is PHP 50,000
The applicable fees for this transaction are:
| Stock Transaction Tax | PHP 300.00 |
| Transaction fees | PHP 2.50 |
| SCCP fees | PHP 5.00 |
| Commissions | PHP 125.00 |
| VAT | PHP 15.00 |
Applicable cash or property dividend tax
| Criteria | Final Withholding Tax |
| Philippine Citizen or a Resident Foreigner | 10% on the gross amount of dividends received |
| Non-resident foreigner engaged in business or trade in the Philippines | 20% on the gross amount of dividends received |
| Non-resident foreigner not engaged in trade or business in the Philippines | 25% on the gross amount of dividends received |
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. This is provided that all supporting documents have been submitted.
Cash and property dividends received from a domestic corporation by a non-resident foreign corporation are subject to final withholding tax of 25%. The 25% 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. This is provided that all supporting documents have been submitted.
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 a 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. Note that this is only applicable for tax on dividends.