Philippines Crypto Regulation 2022
MANILA Philippines is not expected to accord legal tender status on crypto even if the country supports its use and policies. The EIU, UK based Economist Intelligence Unit said the Philippines displays the most benign attitude towards cryptocurrency.
23–03–2022: Taxes on digital assets and crypto taking shape soon in the Philippines.
The patchwork of new tax rules aiming at collecting revenue from the growing digital asset market creates new risks and obligations for investors and coders. Global investments in digital assets have increased significantly in the past 13 years.
Taxation of Cryptocurrencies
The Bureau of Internal Revenue (BIR) and Department of Finance (DOF) has released statements on cryptocurrencies, the Philippines #1 online tax app “Taxumo ” allows an easy and seamless tax filing online without the involvement of a broker or an accountant.
Cryptocurrencies can only be taxed when they are converted to fiat or some other measurable in fiat, says Atty.Mike. selling and buying of cryptocurrencies to take market’s price fluctuating advantages, the profits earned from these transactions are taxable only when they are converted to fiat, that means only when you sell it for actual Philippine currency of Philippine such as Pesos.
Any gain involving mining is taxable only when the virtual currency is converted to fiat currency. The gain from crypto is considered under income tax after realizing and hence income tax is paid on every quarter rather than paying annually.
The cryptocurrency triggered to be treated as stocks is considered as capital gains tax which will be taxed as other securities and stocks in the country.
VAT the tax applied on goods and services is required to be paid only if the earnings exceed Php 3 million pesos and the lesser will be considered under percentage tax.