Compare the tax on a share sale as listed (0.6% STT) versus unlisted (15% CGT).
Lower tax regime
—
Listed, 0.6% STT
—
Unlisted, 15% CGT
—
Your breakdown
Updates live as you type
Regime
Base
Tax (PHP)
Worked example
Say you sell shares for 500,000 pesos that you bought for 300,000, a gain of 200,000. If those shares are
listed on the PSE, the tax is the stock transaction tax of 0.6% of the gross selling price, so 0.6% of
500,000, which is just 3,000 regardless of the profit. If instead they are unlisted domestic shares, the
tax is the 15% capital gains tax on the net gain, so 15% of 200,000, which is 30,000. Here the listed
regime is far cheaper, by 27,000, because it taxes the whole price at a tiny rate while the unlisted regime
taxes the gain at a heavy one. The balance flips when the gain is small relative to price: a thin profit
makes the 15% on the gain smaller than the 0.6% on the entire price.
How it is calculated
Selling shares in the Philippines is taxed under two very different regimes, and which one applies depends
on whether the shares are listed and traded on the exchange. The calculator computes both. For listed
shares it applies the stock transaction tax, 0.6% of the gross selling price, charged whether you made a
profit or a loss and collected by the broker, in lieu of any capital gains tax. For unlisted domestic
shares it applies the 15% capital gains tax to the net gain, the selling price less your acquisition cost,
which is zero when you sell at a loss. It then shows the effective rate of each as a share of the price so
the two are comparable, and names the cheaper option. The takeaway is structural: listed shares are taxed
on turnover at a low rate, so the cost stays small even on big gains, while unlisted shares are taxed on
profit at a high rate. The model excludes broker commissions and other transfer costs, which apply on top.
Frequently asked questions
Is it cheaper to sell listed or unlisted shares in the Philippines?
It depends on the gain. Listed shares are taxed at 0.6% of the gross selling price regardless of profit, so the cost is low even on a large gain. Unlisted shares are taxed at 15% of the net gain, which is heavier when the gain is large but is zero if you sell at a loss. For a small gain relative to price, the 15% on the gain can actually be lower than 0.6% on the whole price.
What is the stock transaction tax (STT) on listed shares in the Philippines?
The stock transaction tax is 0.6% of the gross selling price of shares listed and traded on the Philippine Stock Exchange. It is collected by the stockbroker at the time of sale and remitted to the BIR. The tax applies whether the sale results in a gain or a loss, because the base is the transaction amount, not the profit.
How is the 15% capital gains tax on unlisted shares computed?
For domestic shares not listed on any stock exchange, the BIR imposes a 15% final tax on the net capital gain. The net gain is the selling price minus the original acquisition cost and any allowable selling expenses. If you sell at no gain or at a loss, the tax is zero. The tax must be reported and paid within 30 days of each sale using BIR Form 1707.
Can I offset losses on unlisted share sales against gains in the Philippines?
Each sale of unlisted domestic shares is taxed on its own net gain. If one transaction produces a loss and another a gain in the same tax year, the loss on the first does not reduce the tax on the second, because the 15% CGT is a final tax computed per transaction. This is different from ordinary income taxation, where losses can offset gains within the same class of income.