Philippines

Capital Markets Efficiency Promotions Act (CMEPA)

On 29 May 2025, the National Internal Revenue Code of 1997 with the objective of streamlining and enhancing the competitiveness of the Philippine financial landscape. 

CMEPA focuses on simplifying the passive income tax system to enhance its fairness and regional competitiveness, with the goal of engagement in capital markets. This took effect on 1 July 2025, following its publication.

Among the salient provisions are revised tax rates on passive income, simplified tax filing procedures, enhanced incentives for savings, and a broadened definition of financial instruments. These measures are designed to foster a robust investment environment, attract foreign capital, and drive sustainable economic growth.