Manila, Philippines — July 17, 2025 — The Department of Finance (DOF) has dismissed as fake news a circulating report claiming that all bank savings will be taxed 20% under the newly implemented Capital Markets Efficiency Promotion Act (CMEPA).
Finance Secretary Ralph Recto clarified that only the interest earned from bank deposits — not the entire account balance — is subject to tax.
“There is no truth to reports that the government will impose a 20% tax on the total savings of depositors. Only the interest income generated from those savings is taxable,” Recto emphasized.
The department explained that this policy is not new and is in accordance with the Tax Reform Act of 1997, which has been in effect for several decades. The implementation of CMEPA on July 1 does not alter the existing rule on interest income taxation.
The DOF urged the public to verify information before spreading it online and encouraged depositors to consult their respective banks if they have any concerns or questions regarding how the law is applied to their accounts.
Secretary Recto reiterated that the government remains committed to financial transparency and consumer protection amid misinformation being spread on social media.
