Crypto and Taxes in the Philippines 🇵🇭 | What You Need to Know!

Now, I know the topic of taxes sounds boring or even scary, but if you're into crypto — whether you're trading, staking, playing-to-earn, or even just holding your coins — you need to understand how it works here in our country. So let’s break it down in the simplest way possible.

First things first — yes, crypto is taxable in the Philippines. The Bureau of Internal Revenue (BIR) treats crypto as a digital asset, and any income or profit you make from it is subject to tax. There’s no specific crypto tax law yet, but the BIR uses existing tax rules to cover it. So just because it’s digital or online, doesn’t mean it’s invisible to the government.

So, when do you need to pay taxes on crypto? Basically, if you earn or profit from crypto in any way — you need to report it. That includes profits from trading, income from staking or yield farming, play-to-earn games like Axie Infinity, or even getting paid in crypto for freelance work. If you just bought and held crypto without selling or using it, you’re not taxed yet — but once there’s income or profit, it becomes taxable.

Now, there are two main types of taxes that usually apply. First is Income Tax, which is applied if your crypto earnings come from work or services — like if you were paid in USDT, BTC, or SLP for your freelance job or for playing a game. The second is Capital Gains Tax, which applies if you buy low and sell high — like if you bought Bitcoin at ₱1 million and sold it at ₱2 million, the ₱1 million profit is taxable.

You may also hear about VAT or Value Added Tax, but that mostly applies to businesses that accept crypto as payment. If you're just trading or earning individually, VAT usually won’t apply to you.

So, how do you report crypto taxes? Simple. You need to include your crypto earnings or profits in your Annual Income Tax Return (ITR). The BIR doesn’t have a special crypto form yet, but you are still legally required to declare all income — including crypto. Keep track of your transactions — record the amount, date, PHP value at the time, and what the transaction was for. You can even use crypto tax tools to help you compute everything.

Lastly, remember: failure to report your crypto income can lead to penalties, interest, or even legal action. So be responsible. We want crypto to grow in the Philippines — and part of that is following the law.

If you found this helpful, like and share this video, and don’t forget to subscribe for more crypto content! See you next time, and stay crypto smart!