Crypto Taxation in the Philippines: A Complete Guide

Cryptocurrency is booming in the Philippines, with tons of newbies jumping into digital coins like Bitcoin for its fast and easy ways to move money. By 2024, adoption soared, pushing the government to set taxes to keep this growing market in check. The Bureau of Internal Revenue (BIR) watches over crypto taxes, making sure everyone follows the rules. People trading or holding crypto must report profits, facing up to 15% capital gains tax. As the Bangko Sentral ng Pilipinas (BSP) adds safety steps like the Travel Rule, it’s clear—staying on top of tax duties in 2025 is a must to dodge trouble.

Tax Authorities & Regulations

In the Philippines, several regulators look after the law amended in crypto trading. The Bureau of Internal Revenue (BIR) takes the lead on crypto taxes, with the Department of Finance (DOF). Another authority, the Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission (SEC), also help in the regulation framework. In 2025, a new DOF law labeled crypto as “digital assets,” not cash, which was earlier considered in a 2017 rule called Circular No. 944. This sets up taxes whenever people make money or gain from it, with the 2025 changes clearing up the picture.

Types of Crypto Taxes in the Philippines

Crypto taxes depend on what people do:

• Capital Gains Tax (CGT): This kicks in when someone sells crypto for a profit, like Bitcoin to pesos, up to 15%.
• Income Tax: Earnings from mining, staking, or crypto payments, get taxed like regular income.
• Value-Added Tax (VAT): A 12% VAT might hit crypto trades if treated as goods, especially for businesses.
• Other Taxes: No special wealth or crypto gift tax yet, but 2025 hints at tighter rules.

Tax Rates & Brackets

Here’s the tax breakdown:

• Capital Gains Tax caps at 15% on crypto sale profits, same for all.
• Income tax follows the usual rates: 0% for earnings under ₱250,000, up to 35% for over ₱8 million, while businesses pay 25%.
• No tax breaks for small gains yet, but losses might trim income tax if reported right.

Crypto Transactions & Tax Treatment

Crypto deals get taxed simply:

• Buying crypto with pesos skips tax, but selling for profit means up to 15% CGT.
• Mining or staking rewards count as income, taxed at their peso value when grabbed.
• Crypto pay for work or goods is taxed like regular earnings.
• Swapping crypto, like Bitcoin for Ethereum, might trigger CGT if there’s a profit.
• DeFi cash from lending or farming gets income tax.
• NFT sales face CGT if they make money, no extras yet.

Crypto Tax Reporting & Compliance

In the Philippines, people trading crypto must tell the Bureau of Internal Revenue (BIR) about their earnings using yearly Income Tax Return forms—Form 1700 for individuals and Form 1702 for businesses. They need to keep a record of every trade, including dates, amounts, and peso values, using apps like PDAX. Everyone has to file by April 15 each year without fail. If they miss this deadline, they could face fines between ₱10,000 and ₱25,000, and big tax dodgers might even end up in jail. Starting in 2025, new rules will make exchanges share trade information with the BIR, simplifying the process.

Tax Deductions & Exemptions

Options to lower crypto taxes in the Philippines are limited. If someone loses money on crypto trades, they can sometimes reduce their income tax, but not the capital gains tax, as long as they report it that year. Businesses can subtract costs like mining equipment from their income tax. All Filipinos avoid tax on earnings under ₱250,000, but there’s no extra break just for crypto yet.

Enforcement & Penalties for Non-Compliance

In 2025, the Bureau of Internal Revenue (BIR) steps up its game to catch crypto tax dodgers in the Philippines. It teams up with the Bangko Sentral ng Pilipinas (BSP), using rules for Virtual Asset Service Providers (VASPs) and Know Your Customer (KYC) checks from exchanges to follow the money. The 19 licensed platforms, like Coins.ph, have to tell the BIR about big trades. If people skip paying taxes, they’ll face fines between ₱10,000 and ₱50,000, plus 20% interest each year on what they owe. Repeat offenders could even land in jail. Peer-to-peer trades are tough to spot, but the BIR is working with other countries to track sneaky cross-border deals

Future of Crypto Taxation in the Philippines

In the future, taxes might shift in the Philippines’ crypto market. The DOF is eyeing a flat 20% crypto tax by 2026, inspired by India, to grab more cash. They want the rules to be amended without discouraging any traders and boosting tax perks for startups if blockchain booms. The Philippines crypto market is gearing up and is making it the next crypto-friendly country that keeps future crypto adoption.

Conclusion

Crypto taxes in the Philippines boil down to a 15% capital gains tax on profits, income tax on earnings, and possibly a 12% VAT, all watched by the BIR. People need to track their trades and file by April 15 to stay clear of fines. With rules getting sharper in 2025, sticking to the law keeps trouble away. Talking to a tax pro can make it easier for people to handle crypto right and avoid slip-ups.

Frequently Asked Questions

1. How do Filipinos report crypto profits in 2025?

Every Filipino trader must report crypto earnings to the Bureau of Internal Revenue (BIR) using Form 1700 for individuals or Form 1702 for businesses. They need to record trades with dates, amounts, and peso values from apps like PDAX.

2. What happens if someone skips crypto taxes in the Philippines?

If people in the Philippines don’t pay crypto taxes in 2025, the BIR fines them ₱10,000 to ₱50,000, plus 20% yearly interest on unpaid amounts. Repeat offenders could face jail time.

3. Are small crypto gains tax-free in the Philippines?

In 2025, no special tax break exists for small crypto gains, but earnings under ₱250,000 yearly avoid income tax. CGT up to 15% still applies to profits from sales.

4. Why does the BIR team up with the BSP for crypto taxes?

The BIR works with the Bangko Sentral ng Pilipinas (BSP) in 2025 to track crypto funds using VASP rules and KYC checks, ensuring tax compliance as 19 platforms like Coins.ph report big trades.

5. Can Filipinos cut taxes with crypto losses?

In 2025, people in the Philippines can lower their income tax with crypto losses if reported that year, but not CGT. Businesses might deduct mining costs from income tax, though relief remains slim.