The Philippines, like many other countries, is currently working upon regulating cryptocurrency. The Government is looking to set up a tax regime by 2024 on cryptocurrency and categorize the proceeds. Crypto Tax in Philippines currently is levied as general personal income tax which leads to difficulties in getting a sense of what rates have to be levied.
The Philippines ranks 8th globally in crypto ownership with almost 7% of its population holding crypto.
Do you have to pay crypto tax in the Philippines?
Yes, according to income tax rules gross income from whatever sources are subject to taxes. Therefore, even if there is no proper regime to tax crypto, the gains made are subject to taxes.
When do you have to pay tax on crypto in the Philippines?
Whenever you generate any income from transactions involving crypto, you pay taxes in the Philippines.
What crypto transactions are taxable in the Philippines?
All and any crypto transactions that lead to income generation are taxable in Philippines:
- Sale of crypto
- Spending of crypto
- Exchanging for another crypto or property
- Receiving payments in form of crypto
What are the Crypto Tax Rates in the Philippines?
Income Tax Rates in the Philippines are levied at a progressive rate up to 35% where PHP 2,50,000 are exempt from taxation.
Philippines Income Tax Brackets (2023)
| Taxable income (PHP) | Tax (%) |
| 0 – 249,999 | 0 |
| 250,000 – 399,999 | 15 |
| 400,000 – 799,999 | 20 |
| 800,000 – 1,999,999 | 25 |
| 2,000,000 – 7,999,999 | 30 |
| 8,000,000 AND ABOVE | 35 |
Philippines Capital Gain Tax Rates (2023)
A tax of 6% is levied on Capital Gains in the Philippines irrespective of the period the asset was held for.
How is Tax Calculated on Cryptocurrency in the Philippines?
In order to calculate tax on crypto, you need to calculate the price you acquired it for and deduce its correct cost price. There are two ways used globally for getting the cost price: FIFO and ACB.
According to FIFO Method, you sell your oldest acquired coin first and cost is calculated according to the respective prices at which the coin was bought. Whereas, in ACB, time of buying doesnt matter and average cost is taken into account.
Let’s take an example,
Say you bought 2 BTC for PHP 20,000 in 2020 and 4 BTC for PHP 60,000 in 2021. Then you sold 4 BTC in 2022 for PHP 1,00,000:
- FIFO METHOD
You sell 2 BTC from 2020 and 2 BTC from 2021. So cost price is:
= 20,000 + (2/4)*60,000
= PHP 50,000
Profit = 1,00,000 – 50,000
= 50,000
Here, taxes are levied on PHP 50,000 .
- ACB METHOD:
All coins are of the same denomination. Therefore, cost price for one coin:
= (20,000 + 60,000)/6
= PHP 13,333
So, cost price of 4 coins:
= PHP 53,333
Profit = 1,00,000 – 53,333
= 46,666
Here, taxes are levied on PHP 46,666.
Is there any Crypto Tax Free in the Philippines?
Crypto gains less than PHP 250,000 are exempt from taxes in Philippines.
Crypto Tax in Philippines – FAQs
Do you have to pay tax when you buy crypto in the Philippines?
No, buying crypto is not subject to taxes in the Philippines.
Do you have to pay tax when you sell crypto in the Philippines?
Yes, if the gains made from selling crypto are more than PHP 250,000, you have to pay taxes on them.
Do you have to pay tax when transferring crypto in the Philippines?
No, transferring crypto is not taxable in the Philippines.
Do you have to pay tax when spending crypto in the Philippines?
Yes, spending in crypto can lead to income generation which is taxable.
Is swapping crypto taxable?
Yes, swapping crypto for another crypto or property is taxable in the Philippines.
How much tax on crypto gains in the Philippines?
| Taxable income (PHP) | Tax (%) |
| 0 – 249,999 | 0 |
| 250,000 – 399,999 | 15 |
| 400,000 – 799,999 | 20 |
| 800,000 – 1,999,999 | 25 |
| 2,000,000 – 7,999,999 | 30 |
| 8,000,000 AND ABOVE | 35 |
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.