PHILIPPINES Trends and Developments Contributed by: Patricia A. O. Bunye and Christianne Grace F. Salonga, Cruz Marcelo & Tenefrancia
The CMEPA streamlines and modernises the tax system for capital market transactions, making investing more accessible and inclusive for ordi - nary Filipinos. Key provisions include: • the reduction of the stock transaction tax from 0.6% to 0.1%; • a lower documentary stamp tax (DST) on the original issuance of shares, from 1% to 0.75%; • DST exemptions for mutual fund and invest - ment trust fund shares; • a standardised 20% tax on interest income to eliminate arbitrage opportunities; and • a uniform 0.75% DST on foreign-issued bonds and similar instruments. Collectively, these legislative reforms are expect - ed to enhance the Philippines’ investment cli - mate, encourage market participation, improve capital market liquidity and support long-term, sustainable economic growth. Maritime Disputes in the West Philippine Sea The Philippines’ maritime territorial dispute with China in the West Philippine Sea (WPS) remains unresolved. During the 61st Munich Security Conference, held from 14 to 16 February 2025, representatives from both countries participat - ed in the roundtable discussion titled “Making Waves: Maritime Tensions in the Indo-Pacific”. In this forum, the Philippines reaffirmed its com - mitment to upholding a rules-based international order and the rule of law, particularly emphasis - ing adherence to the United Nations Convention on the Law of the Sea (UNCLOS). The Philippine Maritime Zones Act formally declares the Philippines’ maritime zones in accordance with UNCLOS standards. It also provides a legal basis for the future designa - tion of archipelagic sea lanes within Philippine
waters, which will define maritime and air routes across the country’s archipelagic territory. Complementing this, the Philippine Archipelagic Sea Lanes Act establishes a system of desig - nated sea lanes and air routes through which for - eign vessels and aircraft may exercise the right of archipelagic sea lanes passage. This meas - ure ensures that such passage is conducted in a manner consistent with international law, while safeguarding Philippine sovereignty and mari - time interests. On 8 November 2024, President Marcos Jr signed into law two key measures aimed at strengthening the Philippines’ entitlement to and responsibility over its maritime zones: Republic Act No 12064, or the Philippine Maritime Zones Act, and Republic Act No 12064, or the Phil - ippine Archipelagic Sea Lanes Act. These laws align the country’s domestic legal framework with international law, particularly the UNCLOS, and are intended to enhance national maritime governance, support economic development and bolster national security. On 19 June 2025, the Philippine Coast Guard reported the presence of more than 50 Chinese maritime militia vessels near Rozul (Iroquois) Reef, an area located within the Philippines’ 370-kilometre exclusive economic zone. In response, the Department of Agriculture, through the Bureau of Fisheries and Aquatic Resources (BFAR), granted fishing rights under the Kaba- likat ng Bagong Bayaning Mangingisda (KBBM) programme to fisherfolk from Palawan, the prov - ince closest to the disputed reefs. This initiative allows them to install payaos (fish-aggregating devices) in the WPS, encouraging Filipino fisher - men to venture beyond the country’s territorial sea to increase their catch. The programme aims to improve the supply of fish in Metro Manila
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