How is crypto taxed in the Philippines?

The Philippines taxes crypto income under its ordinary income tax law, because the Bureau of Internal Revenue (BIR) had not issued crypto-specific regulations as of October 2026. Gains from selling crypto, and crypto received as payment, are generally treated as income. The details depend on how the crypto was held, and advisers say parts of the treatment are unclear.

Is crypto income taxable in the Philippines?

Yes. The Tax Code defines gross income as income from whatever source, and nothing exempts crypto. Philippine tax advisers say the following are generally taxable:

• selling crypto for pesos
• swapping one coin for another
• paying for goods or services with crypto
• being paid in crypto

Simply holding crypto, or moving it between your own wallets, is not treated as taxable. No BIR issuance covers mining, staking or airdrops, and advisers suggest a cautious reading that treats them as income at their peso value when received.

How are crypto gains taxed in the Philippines?

The key question is whether crypto is an ordinary asset or a capital asset. PwC Philippines has noted the lack of clear BIR guidelines on this:

1. Traders. Crypto held for sale in the ordinary course of business is an ordinary asset. Profits are business income, and sales may face percentage tax or VAT depending on turnover.
2. Investors. Crypto held for investment is a capital asset. Net capital gains are still taxed as ordinary income, and capital losses can offset only capital gains. Some advisers say only half the gain counts when the asset was held for more than 12 months.

The special 6% and 15% final capital gains taxes used for some other assets do not apply to crypto.

Income is taxed at the graduated rates in force since January 1, 2023. The first ₱250,000 of taxable income is taxed at 0%, rising in steps to 35% on income above ₱8,000,000. Self-employed traders who are not VAT-registered and whose gross sales stay at or below ₱3,000,000 may choose an 8% rate on gross sales above ₱250,000 instead. Other countries' approaches are compared in crypto tax around the world.

How do you file crypto tax in the Philippines?

Filing follows the normal income tax process:

• Traders register with the BIR, file quarterly returns on Form 1701Q, and file an annual return on Form 1701 or 1701A by April 15.
• Investors report the taxable gain on the annual return by April 15.

The BIR has not set a cost method, so taxpayers choose one, such as first-in, first-out or average cost, and use it consistently. Records should be kept for at least five years. Crypto tax software can help track cost and gains across exchanges.

More data is coming. The Department of Finance said in June 2025 that the Philippines would implement the Crypto-Asset Reporting Framework by 2028, so crypto platforms will collect and share user information.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.