‘Crypto asset users must pay tax’
The Department of Finance (DOF) has affirmed the Philippines’ commitment to adopt a global reporting framework for crypto assets in a bid to curb cross-border tax evasion and illicit financial flows.
Under this framework, crypto asset users must pay their fair share of tax, the DOF said on Tuesday.
In a statement, the DOF said the move supports President Ferdinand Marcos’ Jr.’s broader agenda of promoting fiscal discipline through transparent and efficient tax administration.
The government has also joined the push to curb tax evasion and illicit finance via digital assets.
“We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions. This is a timely commitment as digital currency becomes one of the preferred means for transactions,” Finance Secretary Ralph Recto said in the statement.
He emphasized that “crypto asset users must pay their fair share of taxes” and
warned that no illicit financial activity would go unpunished.
The DOF said the Philippines has committed to implementing the Crypto Asset Reporting Framework (CARF) by 2028. The commitment was formalized by Finance Undersecretary Charlito Martin Mendoza during the 8th Asia Initiative Meeting held in Malé, Maldives from May 26 to 28.
Developed by the Organization for Economic Cooperation and Development (OECD), the CARF establishes a standard for the automatic exchange of tax information related to crypto assets between jurisdictions.
The Philippines joins 67 other countries and territories committed to adopting the framework by 2027 or 2028.
During the same forum, the Philippines also shared its experience in adopting the Convention on Mutual Administrative Assistance in Tax Matters, a multilateral treaty that facilitates cooperation in tax collection and enforcement among signatory countries.
The DOF briefed participants on reforms aimed at improving the exchange of information (EOI) on request, preparations for the Enhanced Monitoring Process, and efforts to comply with Common Reporting Standards (CRS) — a key component in global tax transparency.
The Philippines became a member of the Asia Initiative in 2023. The platform promotes international tax cooperation and the use of transparency standards to combat tax evasion and illicit financial flows.
“Adhering to these tax transparency standards is crucial, especially given that at least 24 billion euros in additional revenue has been identified globally from 2009 to 2024 through EOI requests, offshore investigations, automatic information exchange, and related voluntary disclosure programs,” the DOF said.
