The Philippines’ Department of Finance (DOF) has submitted a proposal to the incoming administration of President-elect Ferdinand “Bongbong” Marcos Jr. and his economic team which includes taxation on cryptocurrency by 2024.
While there are no clear taxation rules regarding cryptocurrency in the Philippines, it is treated as taxable when sold with gain (capital gains tax). (Read More: Taxation of Crypto in the Philippines)
According to the finance department, their recommendations are estimated to yield an average of P284 billion every year.
In the proposal from the DOF, it has noted that the incoming Marcos administration must first clarify the tax treatment of cryptocurrency transactions. The department has not stated the economic revenue impact of such measures.
The regulation for cryptocurrency includes taxing transactions regarding play-to-earn games like Axie Infinity. However, as of the last update since November where Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno stated that the review is still ongoing regarding the use of NFTs as well as the monitoring of the various online gaming platforms. (Read more: BSP: Axie Infinity’s OPS Status Still Under Review)
The Bureau of Internal Revenue (BIR) and Department of Finance (DOF) also priorly eyed the Axie Infinity for tax, while the BSP and Securities and Exchange Commission (SEC) stated last September that Axie Infinity is not yet required to register with them, but the regulating agencies reiterated that they are still monitoring the game. (Read more: BSP, SEC: Axie Infinity Aren’t Required to Register Yet)
As of the publishing time, both the BSP and SEC have yet to classify Axie Infinity’s SLP and AXS currencies as taxable.
Accordingly, on August 23, 2021, the BIR reminded cryptocurrency investors, play-to-earn users, and Axie Infinity players to register with Bureau as an income earner and pay taxes or risk penalty and jail time. (Read more: Cryptocurrency Tax Philippines | Play-to-Earn Tax 101 by PDAX and Taxumo)
This article is published on BitPinas: Dept. of Finance Proposes Crypto Tax by 2024 in the Philippines
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