Cryptocurrency Tax Treatment in the Philippines

The Philippines taxes cryptocurrency through its general income tax system rather than a dedicated crypto tax law, with rates varying based on activity classification and taxpayer status.

Capital Gains Tax

The tax treatment of capital gains depends on how cryptocurrency is classified. According to PwC, if cryptocurrency is treated as a capital asset, net capital gains from sale or exchange are subject to ordinary income tax after considering the holding period[3]. However, search results present conflicting information: one source indicates a 15% capital gains tax applies to selling crypto for fiat or exchanging for goods[1], while another states the Philippines does not apply a specific capital gains tax framework to cryptocurrency, with gains usually taxed as ordinary income[2]. A third source claims the Philippines does not currently tax cryptocurrency gains[5], though this appears outdated given regulatory developments in 2025-2026.

Income Tax Rates

For individuals, crypto-related income is subject to progressive income tax rates ranging from 0% to 35%, depending on total annual income[2]. For businesses, companies earning crypto-related income are generally subject to corporate income tax at a rate of 25% (or 20% for qualifying SMEs)[2].

Income from mining, staking, and receiving crypto as payment is subject to standard income tax, classified as ordinary income[1].

Value Added Tax (VAT)

A 12% VAT applies to selling goods in exchange for crypto payments[1].

Tax Classification

The tax treatment depends on whether crypto activity is classified as:

• Personal investment: Limited activity may qualify for capital gains treatment
• Business income: Subject to higher ordinary income tax rates
• Compensation: Taxed as earned income[2]

Cryptocurrency is characterized as a digital or virtual asset[3], though it is not legal tender[2].

Reporting Requirements and Regulatory Framework

The Bureau of Internal Revenue (BIR) oversees taxation of crypto-related income[2]. In 2025, the Philippine government implemented mandatory regulations requiring:

• Crypto asset service providers (CASPs) must register with the Philippine Securities and Exchange Commission (SEC) and maintain a minimum capital of ₱100 million with physical incorporation in the Philippines[1]
• Strict compliance with anti-money laundering (AML) procedures is mandatory[1]
• CASPs must submit regular reports to the SEC and the AML Council with detailed documentation 30 days prior to any activity[1]

For individual taxpayers, proper classification, accurate peso valuation, and thorough record-keeping are essential for compliance[2].

Crypto-Specific Legislation

Currently, the Philippines does not have a standalone cryptocurrency tax law, though crypto-related income is clearly taxable under existing tax regulations[2]. However, the Philippine government is moving toward formal crypto taxation, with the Department of Finance studying digital asset taxes and aiming to adopt a comprehensive crypto tax framework by 2028 to combat tax evasion and align with global standards[4]. The Central Bank of the Philippines (BSP) has partnered with the SEC to oversee crypto activities[1].