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Market Taxation Guide - Philippines

13.04.2022

This Market Taxation Guide (Philippines) provides the following details:

Reference information about all taxes applied at source to securities deposited in Clearstream Banking¹; and
Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream Banking.

New and improved tax information and procedures that become available will be included on an ongoing basis.

Important note:

This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.

Withholding tax

Corporate bonds	Holding restriction	Withholding tax rate	Relief at source	Quick refund	Standard refund
	Yes	20%/25% (WHT rate depends on the issuer)
Clearstream Banking does not provide tax Relief at source, Quick or Standard refund services for the Philippines.			No	No	No

Government bonds	Holding restriction	Withholding tax rate	Relief at source	Quick refund	Standard refund
	Yes	20%
Clearstream Banking does not provide tax Relief at source, Quick or Standard refund services for the Philippines.			No	No	No

Equities	Holding restriction	Withholding tax rate	Relief at source	Quick refund	Standard refund
	Yes	25%
Clearstream Banking does not provide tax Relief at source, Quick or Standard refund services for the Philippines.			No	No	No

Clearstream Banking does not provide tax Relief at source, Quick or Standard refund services for the Philippines. Customers should arrange for their own tax reclaim service by appointing a local tax consultant in the Philippines if they qualify for a reduced tax rate via the Double Tax Treaty or tax exemption.

Capital gains tax

There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Holding restriction

There are restrictions on foreign investment in the Philippines:

A non-Filipino citizen, whether resident or non-resident in the Philippines, is regarded as a foreign investor.
A Filipino citizen, whether resident or non-resident in the Philippines, is regarded as a local investor.

A non-resident corporate is classified as a non-Filipino citizen and is therefore considered as a foreign investor. Please refer to the Investment regulation section of the Market Profile.

Customers are responsible for ensuring compliance with this restriction.

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1. “Clearstream Banking” refers collectively to Clearstream Banking S.A. and Clearstream Banking AG (for Clearstream Banking AG customers using Creation accounts).