How capital gains tax works in Philippines
The Philippines does not use one universal capital-gains rate. The tax depends on whether the asset is a listed security, unlisted share, real property held as a capital asset, ordinary business property or another investment.
From 1 July 2025, the sale or exchange of shares and other covered securities listed and traded through a local or foreign stock exchange is generally subject to a 0.1% stock transaction tax on gross selling price or value, in lieu of capital-gains tax. The tax is charged on the transaction, not on the investor's net profit.
The sale of shares that are not traded on a local or foreign stock exchange is generally subject to 15% capital-gains tax on net gain. A domestic company share sale can also require valuation, documentary stamp and withholding documentation.
The sale of real property in the Philippines classified as a capital asset is generally subject to a 6% final tax on the higher of gross selling price, zonal value or fair-market-value measure under the Tax Code. Property held as an ordinary business asset follows ordinary income-tax and potentially VAT rules instead.
Tax rates at a glance
- Unlisted shares
- 15% of net gainCapital-gains tax
- Listed shares and covered securities
- 0.1% of gross saleStock transaction tax
- Capital-asset real property
- 6%
- Ordinary business assets
- Regular income tax
- Digital assets
- No dedicated rate
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsProperty ownersFounders selling sharesPublic-market tradersCrypto holders
Watch out for
- The 0.1% listed-share rate is a stock transaction tax on gross sale proceeds, so it applies even when the investor's economic profit is small or negative.
- Unlisted-share gains use net gain, but the transaction still needs a defensible cost basis, valuation and evidence of the sale price. Related-party and foreign-company transactions can raise additional issues.
- The 6% real-property tax is a presumed-gain tax and is generally based on the highest applicable value rather than the seller's accounting profit. A sale of an ordinary asset can instead fall under regular income tax and VAT.
- The Philippines has no standalone crypto capital-gains rate. Digital-asset gains should not be treated as automatically tax-free; the taxpayer's status, activity, asset classification and source of income matter.
Frequently asked questions
How are listed shares taxed in the Philippines?
Covered listed-share sales through a local or foreign stock exchange are generally subject to 0.1% stock transaction tax on gross selling price or value from 1 July 2025, in lieu of capital-gains tax.
What is the tax on unlisted shares?
The general capital-gains tax rate is 15% on the net gain from selling or transferring shares that are not traded on a local or foreign stock exchange, subject to treaty and classification rules.
Is Philippine property subject to capital-gains tax?
Capital-asset real property is generally subject to 6% tax on the higher of the gross selling price or the applicable fair-market-value measure. Property held as an ordinary business asset follows different rules.