In a move to boost the country’s investment landscape, the Bureau of Internal Revenue (BIR), under the leadership of Commissioner Romeo D. Lumagui, Jr., conducted a Public Consultation on Republic Act (RA) No. 12214, or the Capital Markets Efficiency Promotion Act (CMEPA), on June 23, 2025 at the BIR National Office in Quezon City.
The event gathered tax professionals, financial market participants, legal experts, and representatives from both public and private sectors to discuss the major tax reforms introduced by RA No. 12214. Signed into law by President Ferdinand R. Marcos, Jr. on May 29, 2025, the CMEPA is a landmark legislation designed to streamline the taxation of passive income, encourage foreign capital inflow, and foster a more efficient and competitive Philippine capital market.
Deputy Commissioner Marissa O. Cabreros of the Operations Group formally opened the public consultation with her Opening Remarks, setting the tone for the discussions on the proposed Revenue Regulations to implement the law.
OIC-Deputy Commissioner Larry M. Barcelo of the Legal Group presented the Salient Features of the CMEPA, highlighting the law’s key objectives of i) harmonizing the taxation of passive income; ii) attracting and retaining foreign investments; iii) reducing transaction costs; and iv) improving revenue efficiency without compromising fiscal prudence.
He outlined major tax policy shifts, such as the reduction of the Stock Transaction Tax from 0.6% to 0.1%; imposition of a flat 20% final withholding tax on most interest income; alignment of Capital Gains Taxes on foreign and domestic shares; and new Documentary Stamp Tax rules.
Group Supervisor Mariesol Girang of Regular Large Taxpayers Audit Division (RLTAD) 2 discussed the proposed regulations on passive income. She was followed by RLTAD 2 Group Supervisor Nelsie Arcolas who discussed the proposed Revenue Regulations on Stock Transaction Tax.
Chief Monserrat Venus Axalan of the Audit Information, Tax Exemption, and Incentives Division (AITEID) discussed the proposed regulations governing the taxation of Personal Equity and Retirement Accounts (PERA) while Group Supervisor Marivic Bautista of Excise Large Taxpayers Audit Division (ELTAD) 2 presented the proposed Revenue Regulations on taxation of pick-ups. Atty. Edgar Allan Reyes II of the Legal and Legislative Division presented the proposed regulations on Documentary Stamp Tax, particularly on rate adjustment and amendments to the documents/papers not subject to Documentary Stamp Tax.
An Open Forum, moderated by Atty. Brianna Kay T. Delos Santos and Atty. Raymund L. Ipio, was held after all the presentations where attendees posed questions and gave their comments on the operational impact of the new tax provisions under the proposed regulations to implement CMEPA.
The event concluded with a Closing Remarks delivered by OIC-Deputy Commissioner Larry M. Barcelo of the Legal Group, wherein he reaffirmed the BIR’s commitment to transparent and fair implementation of the tax reforms.
“With RA No. 12214 now in force, financial institutions and businesses are expected to align their compliance protocols with the revised tax rules under the CMEPA”, said Commissioner Lumagui.
