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Philippines Clarifies 20% Final Tax on Interest Income Under Capital Markets Efficiency Promotion Act is Not a New Tax

|Approved Changes|Philippines
Philippines

The Philippine Department of Finance (DoF) has issued a release to clarify that the 20% final tax on interest income under the recently approved Capital Markets Efficiency Promotion Act (CMEPA) is not a new tax. The DoF explains that the CMEPA standardizes the final tax rate on interest income at 20%, correcting preferential treatment previously favoring long-term, wealthier depositors. Previo…

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