In case you are a trader of crypto, like Bitcoin, Ethereum, NFTs, and other forms of cryptocurrency, there’s something you need to know. Starting in 2028, the Philippines will begin sharing its crypto transaction data with tax authorities around the globe.
Definitely, this is a real shift in how crypto will be taxed in the Philippines, and it will truly affect anyone holding, trading, or earning via digital assets.
Thus, in this article, we break down what is the reason behind it, why it matters, and what you should do about it now before 2028 arrives.
The Crypto-Asset Reporting Framework
The Organization for Economic Co-operation and Development (OECD) has stated that the Philippines officially committed to implementing the Crypto-Asset Reporting Framework (CARF) by 2028. Furthermore, it was reiterated in the “Tax Transparency in Asia 2026: Asia Initiative Progress Report”, which has indicated that 11 Asian jurisdictions committed to implementing CARF starting between 2027 and 2028.
As a result, starting 2028, crypto exchanges and platforms under the jurisdiction of the Philippines will be required to collect your transactional data and report it to the Bureau of Internal Revenue (BIR).
Additionally, BIR Commissioner Charlito Martin Mendoza reaffirmed this commitment, stating that it is part of the efforts towards a tax administration that adapts to a modern, secure, and integrated tax transparency landscape. Moreover, he pointed out that the agency is improving its information security management systems to enhance protection regarding taxpayer data against cyber threats.
Why Is This Happening Now?
Well, it can be easy to say that crypto exists as something untouchable, just an anonymous part of the internet. But that’s not happening quite as much anymore, especially speaking of internationally. Indeed, the CARF initiative is a foundation for a broader effort to close tax gaps arising from digital assets.
Here are some of the key facts you should know:
- CARF is being implemented across many countries. Since January 1, 2026, an initial wave of 48 jurisdictions, such as the United Kingdom, has begun enforcing CARF.
- Building an Earlier Milestone: The Philippines has also joined the Convention on Mutual Administrative Assistance in Tax Matters (MAAC) last May 2025, paving the way for our country to have a legal framework for tax information exchange along with more than 150 jurisdictions. Hence, CARF will substantially extend the essence of cooperation into the crypto field.
- Revenue at Stake: According to an OECD report, tax transparency efforts across Asia were estimated to yield roughly EUR 1.6 billion in additional tax revenue in 2025 alone through information exchange and voluntary disclosure programs between countries.
Undoubtedly, given these facts, pushing for the implementation of CARF will lead to better results and somewhat uphold the sense of theoretical justice in the principle of taxation.
What Does This Mean for You?
As a cryptocurrency trader or an investor in related crypto assets, here are some of our takes based on your role.
Casual Crypto Trader or HODLer
You need to start treating your positions and other holdings the way you handle your bank account and investment portfolio, including maintaining proper records and documentation. Once CARF is implemented, the exchange platform you’re using may ask you to verify your tax residency and Tax Identification Number (TIN), and your transactions will eventually be visible to the BIR.
Active Crypto Trader
Since there are frequent transactions happening day in and out, their volume and other data points will be reported. Hence, if you consider trading as a significant source of income for you, you could start to evaluate your current setup, whether as a freelancer, Sole Proprietor, or an Infromal trader, to properly account for your crypto gains in your tax filings. It is best to consult with a tax professional to assess your trading activity and know the right way to report it, even before 2028.
Freelancer or Business Owners Getting Paid in Crypto
Numerous freelancers and small business owners are accepting payments in stablecoins and other crypto assets, especially from foreign clients. Once the framework is in place, it will be visible across the Foreign and Philippine tax systems. It is strongly recommended that you treat crypto payments as if they were fiat currencies: document the transaction, convert it to the current peso value, and record it in your books.
Building Trust and Staying Ahead
Above all, it is worth noting that CARF is framed by the BIR as part of efforts to build a transparent and modernized tax system. BIR Commissioner Mendoza described the country’s partnership with several regions across Asia as a testament to mutual trust and a shared vision for a more transparent financial landscape. Certainly, the goal was not just to catch tax evaders but also to increase the agency’s authority and overall transparency.
Speaking of the times, 2028 might yet feel far away, but staying ahead by early preparation will make it easier down the line. Regardless of the type of crypto asset holder you are, appropriate bookkeeping and tax compliance should not wait for a deadline to force you to start moving.
Here at Babylon2k, we are here to help you out in navigating the evolving tax rules, whether locally or globally. Our team across tax and accounting can help you set up proper records, assess your crypto assets and income, and give you the confidence you need when the automatic exchange starts in 2028. Contact us today, and let’s get your tax habits in order, well ahead of 2028.
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