Is crypto taxable in the Philippines?
Yes. Crypto gains are income, and the Tax Code taxes "all income derived from whatever source", including "gains derived from dealings in property" (NIRC Sec. 32(A)). There is no crypto-specific rate. The BIR has not issued a revenue regulation on crypto, so the general rules apply.
What decides your tax is how you hold the crypto. Crypto you trade as a business is an ordinary asset, taxed as business income. Crypto you buy and hold as an investment is a capital asset under Sec. 39(A), the definition that covers property not held "primarily for sale to customers in the ordinary course of" business. The two paths give very different bills, as the examples below show.
Is there a 15% crypto capital gains tax?
No. The 15% final tax in the Tax Code applies to net capital gains on shares of stock not traded on a stock exchange (Sec. 24(B)(3), as renumbered by RA 12214 (CMEPA)). The 6% final tax applies to real property held as a capital asset. Crypto is neither, so neither rate applies. Capital gains on any other capital asset, including crypto, go into your taxable income at graduated rates.
Trader or investor: which rules apply
| Investor (capital asset) | Trader (business) | |
|---|---|---|
| Income tax | Graduated 0% to 35% on net capital gain | Graduated on net income, or 8% of gross sales above ₱250,000 |
| Holding period | Only 50% of the gain counts if held over 12 months (Sec. 39(B)) | No holding-period relief |
| Losses | Offset only capital gains (Sec. 39(C)) | Deductible against business income under graduated rates |
| Business tax | None | 3% percentage tax at or below ₱3,000,000 of sales, 12% VAT above, unless on 8% |
| Returns | Annual ITR by April 15 | BIR Form 1901 registration, 1701Q each quarter, 1701 or 1701A by April 15 |
Frequent buying and selling for profit, running a bot or doing it for a living points to trading. Buying a few coins and holding them for years points to investing.
Worked example: a trader choosing 8% or graduated
Figures use the graduated table in force from 1 January 2023 (NIRC Sec. 24(A)(2)(a) as amended by TRAIN) and the 3% percentage tax rate in force since 1 July 2023. The 8% option is a tax on gross sales, not on profit (NIRC Sec. 24(A)(2)(b)). For a trader, gross sales are the peso proceeds of everything sold. Two registered, non-VAT traders in Cebu, with no other income and no other expenses:
| Trader | Sales and cost | Graduated (income tax + 3% percentage tax) | 8% option |
|---|---|---|---|
| Marco, wide margin | ₱2,400,000 sold, ₱1,500,000 cost, ₱900,000 gain | ₱127,500 + ₱72,000 = ₱199,500 | (₱2,400,000 − ₱250,000) × 8% = ₱172,000 |
| Ana, thin margin | ₱2,900,000 sold, ₱2,600,000 cost, ₱300,000 gain | ₱7,500 + ₱87,000 = ₱94,500 | (₱2,900,000 − ₱250,000) × 8% = ₱212,000 |
Marco saves ₱27,500 with 8%. Ana pays ₱117,500 more with it, because 8% taxes her turnover while graduated rates tax her small profit. Active traders with thin margins should usually stay on graduated rates and keep cost records. The 8% choice is made on the first quarter return and is fixed for the year (RR 8-2018). Above ₱3,000,000 of sales, 8% is closed. Test your own figures in the income tax calculator.
Worked example: an employee who sold Bitcoin
Liza, an office worker in Makati, has ₱600,000 of taxable salary. She bought ₱50,000 of Bitcoin in 2023 and sold it for ₱130,000 in 2025, an ₱80,000 gain. She is an investor, and she held the coins for more than 12 months.
| Line | Held over 12 months | Held 12 months or less |
|---|---|---|
| Gain counted (Sec. 39(B)) | ₱80,000 × 50% = ₱40,000 | ₱80,000 × 100% = ₱80,000 |
| Taxable income | ₱640,000 | ₱680,000 |
| Income tax | ₱70,500 | ₱78,500 |
| Extra tax from the crypto sale | ₱8,000 | ₱16,000 |
Her salary alone is taxed ₱62,500. Waiting past 12 months halves the tax on the gain. Because she has income that is not taxed at source, she cannot rely on her employer's substituted filing and must file her own annual return by April 15 (RR 2-98 Sec. 2.83.4(C), as amended by RR 11-2018).
What crypto events are taxable?
Under Sec. 40(A), gain is the amount realized minus your cost, and the amount realized includes "the fair market value of the property (other than money) received". In practice:
- Selling crypto for pesos: gain = peso proceeds minus peso cost.
- Swapping one coin for another (BTC to ETH): a disposal; the amount realized is the peso value of the coin you receive.
- Paying for goods or services with crypto: a disposal at the peso value of what you receive.
- Being paid in crypto for work: compensation or business income at its peso value, same as a peso fee.
- Mining, staking rewards and airdrops: not addressed by any BIR issuance; the cautious reading is income at peso value when received.
Holding crypto, or moving it between your own wallets, is not a sale or disposition, so there is no gain to tax.
Records to keep for crypto tax
For every buy, sell, swap and receipt, record the date, coin, quantity, peso value at that moment and fees. Exchange statements alone may not show peso values for swaps. The BIR has issued no cost-basis rule for crypto, so pick one method, such as first-in first-out or average cost, and apply it every year. Keep the records for at least five years, the period NIRC Sec. 235 sets for books of accounts (as amended by RA 11976).
The BIR will see more crypto data from 2028
The Department of Finance announced in June 2025 that the Philippines will implement the OECD Crypto-Asset Reporting Framework (CARF). Under it, tax authorities exchange crypto transaction data automatically, with the first Philippine exchanges set for 2028. The OECD's 2026 Asia tax transparency report kept that date, as reported by Manila Bulletin. Records you start now are the ones you will need to match.
Exchanges, VAT and percentage tax
Crypto exchanges serving Filipinos must be registered with the Bangko Sentral as Virtual Asset Service Providers under BSP Circular No. 1108. See crypto in the Philippines for licensed exchanges and how to cash out. An investor owes no business tax on a sale. A trader owes 3% percentage tax on sales at or below ₱3,000,000 a year, or 12% VAT above it, unless on the 8% option. Check the percentage tax guide and the VAT guide.
Bottom line
Decide first whether you trade or invest, because that sets everything else. Investors: hold past 12 months where you can, and report the counted gain on your annual return. Traders: register, keep cost records, and compare 8% against graduated rates before your first quarter return. Start with the BIR registration guide and how to file your ITR.
Sources
- RA 8424 (NIRC of 1997): Secs. 32(A), 39, 40(A) (Lawphil)
- RA 10963 (TRAIN): NIRC Sec. 24(A)(2), 8% option and graduated rates (Lawphil)
- RA 11976 (Ease of Paying Taxes Act): NIRC Secs. 109(CC), 116, 235 (Lawphil)
- RA 12214 (Capital Markets Efficiency Promotion Act): 15% tax on unlisted shares (Lawphil)
- Digest of Revenue Regulations No. 8-2018 (8% option) (Bureau of Internal Revenue)
- Revenue Regulations No. 11-2018 (substituted filing) (Bureau of Internal Revenue)
- PH to implement a framework on crypto-assets (CARF), June 2025 (Department of Finance)
- Philippines to begin automatic crypto tax data exchanges in 2028 (OECD report), June 9, 2026 (Manila Bulletin)
- BSP Circular No. 1108: Guidelines for Virtual Asset Service Providers (Bangko Sentral ng Pilipinas)