What Is BIR Form 2552? The Stock Transaction Tax, Now 0.1% Under CMEPA

BIR Form 2552 is the Percentage Tax Return for Transactions Involving Shares of Stocks Listed and Traded Through the Local Stock Exchange or Through Initial/Secondary Public Offering — the return that reports the stock transaction tax due whenever PSE-listed shares change hands. Effective July 1, 2025, that tax dropped from 6/10 of 1% (0.6%) to just 1/10 of 1% (0.1%) of the gross selling price, under Republic Act (RA) No. 12214, the Capital Markets Efficiency Promotion Act (CMEPA), and its implementing Revenue Regulations (RR) No. 20-2025.

This guide covers how the stock transaction tax works, who actually files BIR Form 2552, the CMEPA rate cut, and how it differs from the capital gains tax route covered in BIR Form 1707 vs BIR Form 1706.

What is the stock transaction tax, and who pays it? #

The stock transaction tax under NIRC Section 127(A) is a percentage tax on the gross selling price of shares of stock sold, bartered, or exchanged through the Philippine Stock Exchange, or through an initial or secondary public offering — and it’s collected by the stockbroker, not paid directly by the seller. Unlike capital gains tax, which taxes actual profit, the stock transaction tax applies to the full gross selling price regardless of whether the seller made or lost money on the trade, and it stands in lieu of the ordinary income tax or capital gains tax that would otherwise apply to the same sale.

Because it’s a transaction tax collected at the point of sale, an individual investor selling shares through their brokerage account never files BIR Form 2552 themselves — the broker who executed the trade handles the collection and remittance.

How much dropped under CMEPA, and when did it change? #

The rate fell from 6/10 of 1% (0.6%) to 1/10 of 1% (0.1%) of the gross selling price, effective July 1, 2025, under RA No. 12214 (CMEPA) and its implementing RR No. 20-2025 — a rate cut aimed at making Philippine equities trading more competitive with regional exchanges. As summarized in tax advisory coverage of the implementing regulation:

RR No. 020-2025 adjusts the Stock Transaction Tax (STT) rate, with the sale, exchange, or disposition of shares of stock or other securities listed and traded through a Local Stock Exchange subject to a tax rate of 1/10 of 1% (0.1%) of the gross selling price, effective July 1, 2025… The stock broker, who effected the sale through the local stock exchange, shall collect the tax imposed and remit the same to the Bureau of Internal Revenue (BIR) within five (5) banking days.

The broker’s five-banking-day remittance window means the tax is collected and paid to the BIR well before a seller would ever need to think about filing anything themselves.

How is this different from capital gains tax on shares of stock? #

The stock transaction tax applies only to shares listed and traded through the PSE; shares of stock NOT traded on the exchange instead follow the capital gains tax route on BIR Form 1707 or 1707-A. BIR Form 1707 vs BIR Form 1706 and BIR Form 1707: Capital Gains Tax Return for Shares Not Traded on the Stock Exchange cover that route in detail — the seller computes actual capital gain and files and pays the tax directly, a materially different process from the broker-collected stock transaction tax covered here.

Worked example: selling PSE-listed shares at the new rate #

Selling ₱500,000 worth of PSE-listed shares now costs ₱500 in stock transaction tax instead of the ₱3,000 it would have cost before July 1, 2025.

An investor instructs their broker to sell shares currently worth ₱500,000 through the PSE:

The broker withholds and remits the ₱500 stock transaction tax to the BIR via BIR Form 2552 within five banking days; the investor does not separately report the sale on an income tax return.

Frequently asked questions #

What is BIR Form 2552 used for? #

BIR Form 2552 is the Percentage Tax Return for Transactions Involving Shares of Stocks Listed and Traded Through the Local Stock Exchange or Through Initial/Secondary Public Offering. It reports the stock transaction tax due on shares sold through the PSE or through an IPO/secondary offering.

What is the current stock transaction tax rate? #

Effective July 1, 2025, the rate is 1/10 of 1% (0.1%) of the gross selling price, reduced from the prior 6/10 of 1% (0.6%) rate, under RA No. 12214 (CMEPA) and RR No. 20-2025.

Who files BIR Form 2552 — the seller of the shares or the stockbroker? #

The stockbroker who effects the sale through the local stock exchange collects the tax and remits it to the BIR, filing BIR Form 2552 on the seller’s behalf.

How is the stock transaction tax different from capital gains tax on shares of stock? #

The stock transaction tax applies only to PSE-listed shares, is based on gross selling price, and is collected by the broker. Capital gains tax applies to shares NOT traded on the exchange, is based on actual gain, and is paid directly by the seller.

Is a seller’s gain from selling PSE-listed shares also subject to income tax? #

No. The stock transaction tax is a final tax in lieu of ordinary capital gains tax and income tax on the same transaction.

Summary #

BIR Form 2552 reports the stock transaction tax on PSE-listed share sales, now 0.1% of gross selling price under RA No. 12214 (CMEPA) and RR No. 20-2025, effective July 1, 2025 — down from 0.6% — and the broker, not the seller, files and remits it. See BIR Form 1707 vs BIR Form 1706 for the capital gains tax route that applies to unlisted shares instead.