Emperador Inc. Shares on SGX-ST: New Stock Transaction Tax Collection and Payment Procedures

Key Points Investors Must Know

• Stock Transaction Tax (STT) Rate Change: The trading of Emperador Inc. (“EMI”) shares on the Singapore Exchange (SGX-ST) is now subject to a significantly reduced Philippine STT rate of 0.1% on the gross selling price, compared to the previous 0.6%. This change is effective from 1 July 2025, following the passage of Republic Act No. 122141 or the Capital Markets Efficiency Promotion Act (CMEPA).
• STT Collection and Remittance: The STT is a final tax, payable by the seller of EMI shares. Singapore brokers are responsible for collecting and remitting the STT to the Philippine Bureau of Internal Revenue (BIR) on behalf of the seller.
• Role of BDO Securities Corporation: BDO Securities Corporation (“BDO”) has been appointed by EMI as the receiving and remitting agent for STT payments. Most major Singapore brokers have been onboarded with BDO for this function.
• List of Participating Brokers: A comprehensive list of Singapore brokers—including CGS-CIMB, Citigroup, CLSA, Daiwa, DBS Vickers, iFAST, Instinet, JP Morgan, KGI, Lim & Tan, Macquarie, Maybank, OCBC, Philip, Tiger Brokers, UBS, and UOB Kay Hian—are onboarded with BDO as the Receiving Agent. Note: DBS Vickers currently does not offer EMI share trading to retail clients.
• Alternative Remittance Options: Singapore brokers may choose to remit STT via BDO or through their Philippine-affiliated brokers, ensuring flexibility in payment channels.
• Potential Disruptions: If a broker’s arrangement with BDO is terminated, or if BDO ceases to act as the Receiving Agent, the broker is required to provide alternative procedures for STT payment and reporting. Until such procedures are in place, shareholders may be unable to sell EMI shares via that broker.

Important Investor Considerations and Potential Price Sensitivities

• Lower Tax Rate Impact: The reduction of the STT from 0.6% to 0.1% is a substantial decrease in transaction costs for sellers of EMI shares on SGX-ST. This move could enhance liquidity and attract more trading activity, potentially supporting or boosting the share price.
• Regulatory Compliance Risks: Failure by shareholders or brokers to pay or remit the STT could result in legal or contractual breaches, possibly impacting the ability to trade EMI shares and affecting share value.
• Broker Arrangements: Any disruptions in STT remittance channels (such as termination of BDO’s role) may temporarily restrict trading access, possibly affecting share liquidity and price.
• Additional Fees: Singapore brokers may impose additional fees or charges related to STT collection/remittance. Investors are urged to consult their brokers for details.
• Legal and Tax Implications: Investors should seek professional advice regarding tax, legal, and other consequences of trading EMI shares on SGX-ST, especially in light of new STT procedures.

Comprehensive Details for Investors

The gross selling price or gross value in money refers to the total amount paid by the purchaser for EMI shares, and STT is calculated on this amount. The STT is withheld at the date of settlement, ensuring compliance with Philippine regulations. The list of brokers onboarded with BDO as the Receiving Agent provides broad access for Singapore-based investors, but any changes in these arrangements must be closely monitored.

Investors should be aware that, should their broker lose access to BDO’s remittance facility, alternative procedures must be established for STT collection and payment. Until such procedures are in place, trading of EMI shares through the affected broker may be suspended, potentially leading to liquidity issues or share price volatility.

For further information, investors are recommended to consult official EMI channels and their own financial advisers to assess any additional fees, tax, and legal implications.

Conclusion

The new STT rate and remittance procedures represent a significant change for EMI shareholders trading on SGX-ST. The reduction in transaction costs is expected to be beneficial for investors and could positively impact EMI’s share liquidity and price. However, compliance risks and potential disruptions in broker arrangements must also be considered.

Disclaimer: This article is provided for informational purposes only and does not constitute investment, legal, or tax advice. Investors are urged to consult their own financial, tax, and legal advisers before making any decisions regarding Emperador Inc. shares. The information herein is accurate as of the time of writing and subject to change.