The Philippines has formally pledged to adopt a global tax reporting standard for cryptocurrency transactions by 2028, aligning the country with an international effort to improve transparency, fight tax evasion, and regulate the rapidly growing digital asset sector.
Under the commitment, the Philippines will implement the Crypto-Asset Reporting Framework (CARF) — a global standard developed by the Organisation for Economic Co-operation and Development (OECD) — which establishes guidelines for reporting and the automatic exchange of information on crypto-asset activities between tax authorities.
Officials say the move is part of broader efforts to modernize the nation’s fiscal system and strengthen mechanisms to detect and deter cross-border tax evasion and illicit financial flows. The initiative was announced by the Department of Finance (DoF) during the 8th Asia Initiative Meeting held in Malé, Maldives. At the event, Philippine representatives joined counterparts from dozens of jurisdictions to affirm their respective implementation timelines for the framework.
Finance Secretary Ralph G. Recto underscored the need for enhanced collaboration and technological capacity to keep pace with the evolving digital economy. “We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions,” Recto said in a statement, adding that as digital currencies become more widely used, the government must ensure that crypto-asset users are paying their fair share of taxes and that illicit financial activity does not go undetected.
What CARF Means for the Philippines
Once implemented, CARF will require crypto-asset service providers — including exchanges, brokers, wallet providers, and other intermediaries — to collect detailed information on users’ transactions, identities, and tax residency. This information will then be automatically shared with tax authorities in participating jurisdictions.
For Filipino investors transacting on international platforms, the adoption of CARF means that transaction data could be shared directly between foreign tax authorities and the Philippines’ Bureau of Internal Revenue (BIR), reducing the ability of individuals to obscure crypto income or gains.
Officials say the 2028 timeline gives regulators, service providers, and taxpayers a transition period to prepare systems, update compliance processes, and align local law with the global standard. It also places the Philippines in company with around 67 other jurisdictions that have pledged to implement CARF by either 2027 or 2028, including several in the Asia-Pacific region.
Regional Context and International Push
The CARF standard — part of broader automatic exchange of information (AEOI) initiatives — seeks to extend the successful global framework used for traditional financial accounts to crypto-asset activities. Initial data collection under the framework officially began in some jurisdictions as early as 2026, with automatic exchanges set to start in 2027 for the first wave of adopters.
The Philippines’ commitment positions it alongside neighboring economies such as Singapore, Hong Kong, Thailand, and Malaysia, which have also agreed to CARF implementation timelines. The coordinated effort aims to establish uniform reporting protocols that can support more robust enforcement of tax law in a borderless digital asset market.
Looking Ahead
As the adoption of global crypto tax reporting standards gains momentum, the Philippines will need to upgrade its domestic infrastructure and legal frameworks to operationalize CARF. Analysts say this may involve enhancements to tax authority IT systems, updated compliance requirements for crypto-asset service providers, and public education on reporting responsibilities.
Proponents believe the move will ultimately broaden the tax base, improve revenue collection, and bring the Philippines into closer alignment with international best practices in financial transparency.
However, some industry observers caution that increased reporting obligations could pose challenges for smaller platforms and investors, particularly if compliance costs rise.