Philippines Joins Global Effort on Crypto Tax Standards
The move aims to enhance efforts against cross-border tax evasion and illicit financial flows, aligning with the government's agenda for improved fiscal discipline.
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The Philippine Department of Finance (DOF) affirmed its commitment to implementing a framework for crypto-assets. This initiative aims to address cross-border tax evasion and illicit financial flows.
It also aligns with President Ferdinand R. Marcos, Jr.’s agenda to enhance fiscal discipline through efficient and transparent tax administration.
Finance Secretary, Ralph G. Rect,o emphasised the importance of robust systems for collaboration to counter tax evasion and illicit transactions, particularly as digital currencies become a more common means of exchange.
Ralph G. Recto
“The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished,” he stated.
Revenue Operations Group Undersecretary Charlito Martin R. Mendoza conveyed the DOF’s commitment to implementing the Crypto-Asset Reporting Framework (CARF) by 2028. He announced this at the 8th Asia Initiative Meeting in Malé, Maldives.
Commissioner General Hassan Zareer of the Maldives Inland Revenue Authority and Chairman Eduard Hakobyan of the State Revenue Committee of Armenia co-chaired the meeting.
The Crypto-Asset Reporting Framework (CARF) is a framework for the reporting and automatic exchange of information concerning crypto-assets between tax authorities, facilitating tax compliance.
The Philippines now joins 67 other jurisdictions, including 10 in Asia, in committing to implement the CARF by 2027 or 2028.
During the meeting, the DOF also shared the Philippines’ experience in adopting the Convention on Mutual Administrative Assistance in Tax Matters (MAAC). This multilateral instrument is designed for administrative cooperation between signatories in tax assessment and collection.
In line with its commitment to greater tax transparency, the DOF presented on administrative reforms. These reforms strengthen the exchange of information (EOI) on request.
They also detail steps taken for the Enhanced Monitoring Process and outline efforts to adopt the Common Reporting Standards.
