BIR Form 2552: How the Stock Transaction Tax on PSE-Listed Shares Actually Gets Filed

BIR Form 2552 is the Percentage Tax Return that a stockbroker files to remit the stock transaction tax collected on the sale of shares listed and traded through the Philippine Stock Exchange (PSE), under NIRC Section 127(A). It is a percentage tax on the gross selling price, not a capital gains tax on the seller’s profit, and the rate changed in 2025: Republic Act No. 12214, the Capital Markets Efficiency Promotion Act (CMEPA), cut it from 0.6% to 0.1% effective July 1, 2025 — a detail many older explainers of BIR Form 2552 still get wrong.

What the stock transaction tax actually taxes #

Section 127(A) of the NIRC imposes a percentage tax on every sale, barter, exchange, or other disposition of shares of stock listed and traded through the local stock exchange, computed on the gross selling price or gross value in money of the shares — not on the gain from the sale. That distinction matters: unlike a capital gains tax, the stock transaction tax applies whether the seller made money on the trade or lost it, because the tax base is the transaction’s gross value, not net profit.

Who files, and when #

The stockbroker who executes the sale collects and remits the stock transaction tax on BIR Form 2552 — the individual investor does not file a separate return for it. The tax is deducted from sale proceeds as part of the broker’s settlement process. Reported guidance describes the return as filed within five banking days from the date of collection, a much shorter cycle than the standard quarterly percentage tax return (BIR Form 2551Q) most non-VAT businesses use.

The rate cut: 0.6% to 0.1% under CMEPA #

Before July 1, 2025, the stock transaction tax rate was 0.6% of the gross selling price. CMEPA (RA 12214) reduced it to 0.1%, effective July 1, 2025, as part of a broader package of capital-market tax reforms intended to lower the cost of trading listed shares and encourage retail investor participation. A secondary summary of the change frames the rationale this way:

“The Capital Markets Efficiency Promotion Act (CMEPA) introduces reforms to the taxation of financial transactions, with the most significant change being the reduction of the Stock Transaction Tax (STT) from 0.6% to 0.1% of the gross selling price or value of shares traded in a stock exchange.”

This site relied on secondary CMEPA coverage for this passage, as the BIR’s own implementing issuance could not be reached directly to re-verify the exact regulation wording — confirm the precise text before relying on it for a formal filing position.

Stock transaction tax vs. capital gains tax on shares #

For the unlisted-share side of that comparison, see BIR Form 1707: Capital Gains Tax Return for Sale of Shares of Stock Not Traded on the Stock Exchange.

Worked example: selling ₱500,000 of listed shares #

An investor sells shares through a PSE-listed broker for a gross selling price of ₱500,000.

The broker deducts this amount automatically as part of settlement and remits it via BIR Form 2552 — the investor’s brokerage statement should reflect the tax at the current 0.1% rate, and any statement still showing 0.6% signals a broker system that hasn’t updated its rate table.

Where this fits in the broader percentage tax framework #

The stock transaction tax is one of several specialized percentage taxes under NIRC Title V that sit outside the general 3% percentage tax most small non-VAT businesses report on BIR Form 2551Q. See Percentage Tax Beyond 3%: Common Carriers, Banks, Insurance, and Stock Transactions Under BIR Rules for how it fits alongside the other Title V taxes, and Documentary Stamp Tax on the Original Issuance of Shares of Stock for the separate DST that applies when shares are first issued rather than later traded.

Frequently Asked Questions #

What is BIR Form 2552 used for? #

BIR Form 2552 is the Percentage Tax Return for the stock transaction tax under NIRC Section 127(A), filed by the stockbroker who executed the sale of shares of stock listed and traded through the local stock exchange. It reports and remits the tax collected on the transaction, distinct from the capital gains tax return (BIR Form 1707) used for unlisted shares.

Who actually files BIR Form 2552 — the investor or the broker? #

The stockbroker files it. The stock transaction tax is collected and remitted by the broker who effects the sale, so an individual investor selling shares through a licensed broker normally has nothing to file personally — the tax is already deducted from the transaction proceeds before settlement.

What is the current stock transaction tax rate? #

0.1% of the gross selling price or gross value in money of the shares sold, effective July 1, 2025. Republic Act No. 12214, the Capital Markets Efficiency Promotion Act (CMEPA), reduced the rate from the prior 0.6%.

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

The stock transaction tax under Section 127(A) applies only to shares sold through the local stock exchange, is a percentage tax on the gross selling price regardless of whether the sale produced a gain or loss, and is collected by the broker. Capital gains tax under Section 24(C)/27(D)(2) applies instead to shares of a domestic corporation sold outside the stock exchange, is based on the net capital gain, and is filed by the seller on BIR Form 1707.

When must the broker remit the tax collected under BIR Form 2552? #

Reported guidance describes the return as filed within five banking days from the date the tax was collected, consistent with how percentage taxes on financial transactions are generally required to be remitted promptly rather than on the standard quarterly percentage tax cycle used for BIR Form 2551Q.

Summary #

BIR Form 2552 is the broker-filed return for the stock transaction tax on PSE-listed share sales — a gross-proceeds percentage tax, not a capital gains tax, now charged at 0.1% since CMEPA’s July 1, 2025 rate cut from 0.6%. Investors don’t file it themselves, but should confirm their broker’s statements reflect the current rate.