What taxes/fees do I pay when I purchase a stock?

FOR THE BUYER

1. 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.
2. Securities Clearing Corporation of the Philippines (SCCP) fees equivalent to 0.01% of the gross amount.
3. Broker’s Commission of 0.25% based on the total gross value of the shares purchased.
4. 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)
    • The Gross Amount of the purchase is P50,000.
    • The applicable fees for this transaction are:
      • • P125.00 : Commissions (0.25% of P50,000)
        • p15.00 : VAT (12% of P125)
        • P2.50 : Transaction fees (0.005% of P50,000)
        • P5.00 : SCCP fees (0.01% of P50,000)

FOR THE SELLER

1. Stock Transaction Tax (Final Withholding Tax withheld by the Broker) equivalent to 0.1% of the gross selling proceeds. Gross selling proceeds refer to the total number of shares sold multiplied by the price per share.
2. Transaction fees equivalent to 0.005% of the gross selling proceeds bought.
3. Securities Clearing Corporation of the Philippines (SCCP) fees equivalent to 0.01% of the gross selling proceeds.
4. Broker’s Commission of 0.25% based on the total gross selling proceeds.
5. 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)
    • The Gross Amount of the sale is P50,000.
    • The applicable fees for this transaction are:
      • • P125.00 : Commissions (0.25% of P50,000)
        • P15.00 : VAT (12% of P125)
        • P50.00 : Stock Transaction Tax (50,000 x 0.1%)
        • P2.50 : Transaction fees (0.005% of P50,000)
        • 00 : SCCP fees (0.01% of P50,000)