The Philippines has pledged to adopt an international framework for crypto-asset reporting by 2028. This aims to strengthen the country’s efforts against cross-border tax evasion and illicit financial flows, the Department of Finance (DOF) said in a statement.
Key Details:
- DOF confirmed the country’s commitment to the Crypto-Asset Reporting Framework (CARF).
- The announcement aligns with President Ferdinand Marcos Jr.’s goal of enhancing fiscal discipline through transparent tax administration.
- The framework facilitates the automatic exchange of crypto-asset information among tax authorities.
Finance Secretary Ralph Recto stressed the urgency of improved systems for tax enforcement. Just this June, the 12% value-added tax on digital services comes in full effect. (Read more: 12% VAT! Here’s the Full List of Digital Services Now Taxed in the PH)
“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. The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished.”
Ralph Recto, Secretary, Department of Finance
The commitment was made during the 8th Asia Initiative Meeting held in Malé, Maldives, where Department of Finance Revenue Operations Group Undersecretary Charlito Martin Mendoza formally represented the country.
The event was hosted by Maldives Inland Revenue Authority Commissioner General Hassan Zareer and Armenia’s State Revenue Committee Chairman Eduard Hakobyan.
The Philippines joined 67 other jurisdictions that committed to implementing CARF by 2027 or 2028, including 10 in Asia.
Previously, Secretary Recto claimed that Filipinos invested an estimated ₱6 trillion ($107 billion) into cryptocurrency, a figure that appears to be from research previously conducted by Chainalysis:
“We have a young population, (in the) Philippines the average age is about 25 years old and they’re interested in crypto—and they’re English speaking. So, yeah, about 6 trillion pesos have already been invested in crypto in the Philippines… I expect more, especially with the digital connectivity.”
Ralph Recto, Secretary, Department of Finance
Just this year, the Finance Department had a meeting with Coinbase CEO Brian Armstrong during the World Economic Forum in Davos:
“Coinbase, one of the leading cryptocurrency companies in the United States, initiaited the meeting to convey its strong interest in expanding its footprint to the Philippines.”
Department of Finance
This article is published on BitPinas: DOF: PH to Adopt Crypto Tax Framework By 2028 to Combat Tax Evasion
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