Three money matters made news this July—and yes, they could affect you more than you think.

Here’s what made waves: 

1. The Capital Markets Efficiency Promotion Act (CMEPA) took effect on July 1, 2025
   CMEPA is a change in tax law aimed at making the Philippine capital market (e.g. Philippine stocks) more accessible. It’s a big step toward making investing more practical for everyday Filipinos. It also simplifies taxes on savings products. Some key changes:

• • A flat 20% tax now applies to the interest you earn from bank deposits, trust funds, and even foreign currency deposits. It is important to clarify that this is a tax on your earnings, not your actual savings. Before, the tax rate depended on the type of deposit and how long its tenure was. For example, long-term peso deposits (5 years or more) used to be tax-free, while shorter-term deposits had higher tax rates. Now, they’re all the same at 20%.

1. • Buying and selling local stocks is now cheaper, with the stock transaction tax reduced from 0.6% to just 0.1%.
     
     
   • If you sell unlisted shares—local or foreign—you’ll now pay a flat 15% tax on your gains. It’s also now cheaper for companies to issue shares, and some fund transactions are no longer taxed at all.
     
     
2. Philippine Government Agrees with the US to Cut Planned Import Tax from 20% to 19%
   Higher tariffs could lead to more expensive goods from the US—such as food, electronics, and other everyday essentials. These discussions aimed to ease the pressure from the proposed tariffs and keep trade running smoothly.
   
   
3. Inflation in June ticked up slightly to 1.4% but still stayed
   Since it is seemingly small, it gives the Bangko Sentral ng Pilipinas (BSP) more room to cut interest rates again, which can lead to better borrowing and investment options.

Now, you might be thinking - how does this affect me?  

1. With lower taxes on stock trades, it might be a good time to keep an eye out for new ways to invest in something such as Philippine stocks (if you know, you know). CMEPA also makes it easier to understand how your money’s earnings are taxed, especially for time deposits, which are now covered by a flat 20% rate. (Computing for Time Deposit interest rate).
2. Some good news for your wallet and for local businesses that rely on global supply chains. The talks resulted in a 1 percentage point decrease. At 19% tariffs, that means progress towards more productive trade discussions with the U.S.
3. With more rate cuts possibly coming, now’s a smart time to rethink where and how your money works for you. This low-inflation environment gives the BSP more room to cut interest rates, something economists expect to happen twice this year.
   
   

Read through this article to learn more.

Quick Definitions

• CMEPA – Capital Markets Efficiency Promotion Act: a law that simplifies taxes in investments and savings products.
• Tenure – is the length of time your money is locked in a certain investment (such as time deposit). Think of it as the "waiting period" before you can get your money back with full interest. It can range from a few months to several years. You usually cannot withdraw your money before the tenure ends without paying a penalty.
• Mature (Maturity Date) - is the exact day your time deposit ends or "matures." You can now withdraw your full deposit plus interest. Some banks also allow you to renew the deposit for another term automatically.