• Politics
  • Economy
  • Stock
  • World News
  • Editor’s Pick
Investments Aims
EconomyEditor's Pick

CMEPA tax rules not applicable to SSS, GSIS, Pag-IBIG savings — DoF

by July 17, 2025
by July 17, 2025

THE Department of Finance (DoF) said government-backed savings schemes are exempt from the tax provisions of the new Capital Markets Efficiency Promotion Act (CMEPA).

“The unified rate does not apply to provident savings programs under the Social Security System (SSS), Government Service Insurance System (GSIS), and Pag-IBIG (such as MP2). These savings programs remain exempt from tax,” the DoF said in a statement on Thursday.

The DoF was responding to a backlash against CMEPA, amid claims that its tax provisions apply to funds held in government savings schemes, which it called “fake news.”

“The standardized tax rate is not retroactive and does not apply to financial instruments that were issued or transacted prior to July 1, 2025. Therefore, existing long-term deposits made prior to the effectivity of the law will continue to enjoy the preferential rate until their maturity,” it added. 

CMEPA, which sets a flat 20% tax rate on interest income, is not a new levy but rather “corrects an unfair system that favored the wealthy,” it said.

The DoF also noted that before the law was signed, the National Internal Revenue Code of 1997 had imposed a 20% final tax on interest earned from bank deposits with a maturity of less than three years.

The rate for deposits with maturities of between four years and under five years was 5%, and those with maturities of between three years and under 4 years had been 12%.

“This special tax treatment favored depositors who can afford to park their savings in long-term deposits, making the tax system unfair for short-term depositors who face liquidity issues and need immediate access to their funds,” it said.

Citing the Bangko Sentral ng Pilipinas, the DoF said more than 99.6% of total deposits are already subject to the 20% tax rate, with only 0.4% enjoying preferential rates.

President Ferdinand R. Marcos, Jr. signed CMEPA into law on May 29. — Aubrey Rose A. Inosante

0 comment
0
FacebookTwitterPinterestEmail

previous post
Taiheiyo Batangas cement facility seen operational by Q2 2026
next post
Maharlika taps Ausenco for Makilala feasibility update

You may also like

Maharlika taps Ausenco for Makilala feasibility update

July 17, 2025

Taiheiyo Batangas cement facility seen operational by Q2...

July 17, 2025

Safeguard duty on imports of HDPE pellets, granules...

July 17, 2025

PCIC rolls out parametric insurance scheme

July 17, 2025

PhilHealth allocated P53-B subsidy in 2026 draft budget

July 17, 2025

Travel safety group urged to be more responsible...

July 17, 2025

Indonesia-US trade deal poses competition challenges for PHL

July 16, 2025

PhilHealth rules out contribution rate hike after loss...

July 16, 2025

Green energy auctions seen on track despite ERC...

July 16, 2025

Council approves O&M deal for North-South rail project

July 16, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Join The Exclusive Subscription Today And Get Premium Articles For Free


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent Posts

  • Watch Mamdani the Commie Say That He’s OK With the ‘Abolition of Private Property’ (VIDEO)

    July 18, 2025
  • STILL SINKING: Approval Rating for Democrats in Congress Drops Below 20 Percent in New Poll

    July 18, 2025
  • Karoline Leavitt Responds to Epstein Firestorm—But Sidesteps the One Question That Matters Most

    July 18, 2025
  • Karine Jean-Pierre Subpoenaed With Other White House Officials to Answer Questions About Biden Mental Health Cover-Up

    July 18, 2025
  • Frequent Stephen Colbert Guest Elizabeth Warren Pushes Conspiracy Theory About Show’s Cancellation

    July 18, 2025
  • Terms & Conditions
  • Privacy Policy
  • Contact us
  • About us

Copyright © 2024 Investments Aims. All Rights Reserved.

Investments Aims
  • Politics
  • Economy
  • Stock
  • World News
  • Editor’s Pick