Frequently Asked Questions - Fees, Commission and Taxes

FAQs - Fees, Commission and Taxes

No, we do not charge any monthly/annual fee. We only charge when you buy or sell a stock. The Broker’s Commission consists of 0.25% of the total gross value of shares or minimum of Php20.00 whichever is higher.

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 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.

If you're a Philippine citizen or a resident foreigner, you are subject to a final withholding tax of 10% on the gross amount of dividends received.

If you're a non-resident foreigner engaged in trade or business in the Philippines, you are subject to a final withholding tax of 20% on the gross amount of dividends received.

If you're a non-resident foreigner not engaged in trade or business in the Philippines, you are subject to a final withholding tax of 25% on the gross amount of dividends received.

Cash and property dividends received from a domestic corporation by a non-resident foreign corporation are subject to final withholding tax of 35%. The 35% 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, taxes deemed to have been paid in the Philippines equivalent to 20%, which represents the difference between the regular tax on corporations and the reduced tax on dividends.

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.

Stock dividends distributed pro rata among stockholders of the same class are not subject to Philippine income tax but shall be subject to a documentary stamp tax on the original issue of the share at the rate of P2.00 for every P200.00 or a fraction thereof based on the par value of the share, which is paid for by the corporation declaring the stock dividend.

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 0.5% 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