There’s good news for small investors like you and me. Starting July 1, 2025, COLFinancial will lower the sales tax on stock transactions from 0.6% to 0.1%. This change comes after the approval of Republic Act No. 12214, or the Capital Markets Efficiency Promotion Act.

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This change has a direct impact on how much money stays in your pocket when you sell shares.

 

 

What Is RA 12214 All About?

 

The idea is simple, make investing cheaper so that more Filipinos are encouraged to take part in growing the local economy through the capital markets.

 

 

How Does This Help Us?

 

Let’s break it down using an example. Imagine you’re selling ₱50,000 worth of Ayala Land Inc. (ALI) shares.

• Under the old tax rate of 0.6%, you'd pay ₱300 in sales tax.
• Under the new 0.1% rate, you’ll only pay ₱50.
• That’s ₱250 in savings—on just one transaction!

 

If you’re someone who does cost-averaging or sells multiple stocks in a year, those savings add up.

 

 

Lower Costs = Better Returns

 

We always try to maximize our gains. Lower taxes mean you get to keep more of your profit when you sell, which helps improve your overall returns in the long run.

 

And even if you’re a beginner with just ₱5,000 or ₱10,000 invested, this change makes investing feel less intimidating. You're no longer losing a chunk of your money just to taxes.

 

 

yourlifeinperspective Calculators Affected

 

I've updated the following calculators to reflect the changes:

 

• https://www.yourlifeinperspective.com/2019/03/col-financial-buy-and-sell-calculator.html

 

 

Closing Thoughts

 

This move is a positive step forward. It makes the stock market more accessible, more investor-friendly, and more efficient.

 

Remember that Investing is a marathon, not a sprint. Every peso you save today builds your future tomorrow.

 

Keep learning, keep growing

 

 

What do you think about this new update?

 

  

 

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