The Philippines has a detailed regulatory and tax framework for cryptocurrencies. 

The Bangko Sentral ng Pilipinas (BSP) first regulated virtual asset service providers (VASPs) through BSP Circular No. 944 in 2017, establishing licensing and compliance requirements for exchanges and other crypto intermediaries. On the tax side, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 49-2024, which comprehensively confirms that gains from cryptocurrency trading are subject to income tax and that crypto exchanges must register with the BIR.

Cryptocurrency in the Philippines is treated as property, and gains from its sale or disposal are taxable as ordinary income under the National Internal Revenue Code (NIRC), Section 22.

Capital Gains Tax Rules

The Philippines does not apply a separate capital gains tax rate to cryptocurrency, instead, gains from the disposal of crypto assets are taxed as ordinary income under the NIRC. 

BIR RMC No. 49-2024 explicitly confirms this treatment, clarifying that the proceeds from selling or exchanging cryptocurrency are subject to income tax at graduated individual rates. This means that a taxpayer’s total income, including crypto gains, determines the applicable tax rate under the standard progressive schedule.

How gains are calculated

The taxable gain is calculated as the difference between the gross proceeds received (in Philippine pesos, PHP) and the cost basis of the disposed asset. The cost basis includes the original purchase price plus any directly attributable transaction fees. 

Where a taxpayer holds multiple purchases of the same cryptocurrency at different prices, consistent cost identification rules should be applied to determine which units are being disposed of. The FIFO method is a commonly applied approach in the absence of specific BIR guidance on cost identification methodology for crypto.

Crypto-to-crypto exchanges are also taxable events under the BIR’s framework. The disposal of one crypto asset in exchange for another is treated as a disposal at market value, and any gain is taxable in the period of the exchange. Losses on crypto disposals can generally offset gains, with the net income from crypto activity included in the taxpayer’s total taxable income for the year.

Record keeping

Taxpayers are required to maintain records of all transactions sufficient to support the calculation of gain or loss. This includes transaction records from exchanges, wallet histories, purchase confirmations, and records of the PHP value of each transaction at the time it occurred. BIR-registered exchanges are required to issue receipts or transaction records, which form part of the taxpayer’s supporting documentation.

Income Tax Rules

Under the NIRC and confirmed by BIR RMC No. 49-2024, all income received in the form of cryptocurrency is taxable as ordinary income in the period of receipt. 

This includes cryptocurrency received as salary, payment for services, professional fees, and income from operating as a crypto trader or VASP. The taxable amount is the PHP market value of the crypto at the time of receipt, determined using a verifiable market rate.

Individual income tax rates are progressive, ranging from 0% on annual income up to PHP 250,000 (effectively a zero-rate bracket for lower earners) through to 35% on income exceeding PHP 8 million. 

For self-employed individuals and professionals with annual gross receipts below PHP 3 million, an optional 8% flat tax on gross receipts may be available as an alternative to the standard graduated rates.

Businesses operating as crypto traders or VASPs are subject to corporate income tax on their net income. As of 2024, the standard corporate income tax rate in the Philippines is 25% for regular domestic corporations (with a reduced 20% rate for smaller domestic corporations with taxable income not exceeding PHP 5 million and total assets not exceeding PHP 100 million).

BIR RMC No. 49-2024 makes clear that crypto income at the corporate level follows the same rules as other business income.

Mining and Staking Treatment

Mining

BIR RMC No. 49-2024 treats mining income as business income for Philippine tax purposes.

When a miner receives a block reward, the value of that reward in PHP at the time of receipt is taxable as ordinary business income in the period received. Miners are expected to register as self-employed persons or businesses with the BIR and to issue receipts where required. Business expenses directly attributable to mining, including electricity costs, hardware costs, and depreciation, are deductible against mining income where the miner operates under a business registration.

The subsequent disposal of mined cryptocurrency at a value above its income recognition value creates a further taxable gain, taxable as ordinary income in the disposal period. Given the frequency with which mining rewards are received and the volatility of crypto prices, accurate and contemporaneous record-keeping of the PHP value of each reward at the time of receipt is essential for miners.

Staking

As of 2026, the BIR has not issued guidance specifically addressing the taxation of staking rewards. 

Applying the general principles of BIR RMC No. 49-2024 and the NIRC, staking rewards received by a Philippine taxpayer would most likely be treated as business or passive income at the time of receipt, valued in PHP at the prevailing market rate. If staking is conducted as part of an organised business activity, the income would be taxable as business income. 

For passive staking by individual investors, the income may be characterised as passive income subject to final withholding tax at a specific rate, though the BIR has not confirmed this characterisation definitively for staking.

Taxpayers engaged in staking should apply the conservative treatment of recognising income at receipt at the prevailing PHP value and maintaining detailed records of each reward, including date, amount, and source, to support accurate reporting.

NFT Taxation

NFTs in the Philippines are treated as property under the general framework applicable to digital assets. 

Gains from the disposal of NFTs held as investments are taxable as ordinary income under the NIRC, following the same rules applicable to other cryptocurrency disposals. The BIR has not issued specific guidance on NFTs as of 2026, but the general principle in BIR RMC No. 49-2024 and the NIRC is that gains from the sale of digital property are taxable income.

For creators who mint and sell NFTs commercially, the income received constitutes business income, taxable at the graduated individual rates or corporate income tax rate, as applicable. Primary sales proceeds and any ongoing royalty income from secondary market transactions are both taxable in the period received. Business expenses related to creating and selling NFTs, such as platform fees, artist fees, and production costs, should be deductible as ordinary business expenses.

For VAT purposes, NFT sales conducted by VAT-registered businesses (those with annual gross receipts exceeding PHP 3 million) would be subject to the 12% VAT under the NIRC, provided the transaction constitutes a supply of goods or services within the Philippines. The characterisation of specific NFT transactions for VAT purposes may be complex and should be assessed on a case-by-case basis.

Reporting Requirements

Philippine taxpayers report income and gains from cryptocurrency through their annual income tax return filed with the BIR. 

Individual taxpayers use Form 1701 (for self-employed, mixed income earners, or professionals) or Form 1701A (for purely compensation income earners who also have other income). Crypto income and gains must be included in the relevant income categories, and all values must be expressed in PHP.

BIR-registered VASPs and exchanges are required to report transaction data to the BIR and are subject to AML/CFT reporting obligations under BSP Circular No. 944 and subsequent circulars. This means the BIR may hold transaction data from registered domestic exchanges against which it can match taxpayers’ returns.

Quarterly income tax payments are required for self-employed individuals and professionals, including those whose income includes substantial crypto activity, under the NIRC’s instalment payment rules. VAT returns must be filed monthly and quarterly by VAT-registered entities, including those whose crypto exchange activity exceeds the PHP 3 million threshold.

Taxpayers must retain all records supporting their tax filings for the period required by the BIR’s general record-keeping rules, which is typically ten years. This includes exchange transaction records, wallet histories, BIR receipts, and all documentation supporting cost bases and disposal proceeds.

Penalties

Failure to file a return on time attracts a 25% surcharge on the tax due. Filing a false or fraudulent return attracts a 50% surcharge. Interest at 12% per annum accrues on all unpaid taxes from the original due date until full payment, compounding the financial cost of late or non-payment.

Criminal penalties may apply in cases of wilful tax evasion under the NIRC, including fines and imprisonment. The BIR has publicly indicated that crypto tax compliance is an area of increased enforcement focus following the issuance of RMC No. 49-2024, and taxpayers who have not reported crypto income should be aware that the BIR’s access to data from registered VASPs may increase the likelihood of detection.

The BIR operates a tax amnesty programme from time to time, and taxpayers with undeclared income may benefit from amnesty provisions where these are available. Outside of formal amnesty programmes, taxpayers who voluntarily disclose undeclared income and pay the tax due may be able to negotiate a more favourable resolution than those identified through audit. Early professional advice is recommended for taxpayers who have not met their crypto tax obligations.