Philippines eyes framework on crypto-assets 

The Philippines will implement a framework on crypto-assets to combat cross-border tax evasion and illicit financial flows, the Department of Finance (DOF) said in a report by Philippine News Agency.

In a statement on Tuesday, the DOF said the Philippines committed to execute the Crypto-Asset Reporting Framework (CARF) by 2028 during the 8th Asia Initiative Meeting in Malé, Maldives.

The CARF institutionalizes the framework for the reporting and automatic exchange of information in relation to crypto-assets between tax authorities for tax compliance purposes.

The Philippines now joins 67 other jurisdictions already committed to implementing the CARF by 2027 or 2028, including 10 in Asia.

“We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions," Finance Secretary Ralph Recto said.

"This is a timely commitment as digital currency becomes one of the preferred means for transactions. The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished.”

During the Asia Initiative meeting, the DOF also shared the country’s experience in adopting the Convention on Mutual Administrative Assistance in Tax Matters (MAAC).

MAAC is a comprehensive multilateral instrument available for all forms of administrative cooperation between signatories in the assessment and collection of taxes.

In its commitment to greater tax transparency, the DOF also briefed participants on the administrative reforms implemented to strengthen the exchange of information (EOI) on request, the steps taken to prepare for the Enhanced Monitoring Process, and the efforts made to adopt the Common Reporting Standards.

The meeting also launched the 2025 Tax Transparency in Asia Report, which outlines the progress made by Asian jurisdictions in implementing and effectively using the tax transparency standards throughout 2024.

The Philippines joined the Asia Initiative in 2023, aimed at promoting the implementation of internationally agreed-upon standards on transparency and EOI, as well as the use of these tax transparency standards to tackle tax evasion and other illicit financial flows.

The DOF said adhering to these tax transparency standards is crucial given that at least EUR24 billion in additional revenue from 2009 to 2024 has been identified through EOI requests, offshore investigations, Automatic Exchange of Financial Account Information (AEOI), and related voluntary disclosure programs.

In 2024 alone, at least EUR1.9 billion has been identified through EOI requests (EUR1.7 billion) and AEOI (EUR200 million).