The Department of Finance (DOF) declared the country’s commitment to the Crypto-Asset Reporting Framework (CARF) at the 8th Asia Initiative Meeting in Malé, Maldives. The system, developed by the OECD, is designed to ensure crypto-asset transactions are reported and shared between tax authorities globally.
“With digital currency becoming one of the preferred means for transactions, the government must ensure that crypto-asset users are paying their fair share of taxes,” said Finance Secretary Ralph G. Recto in a statement. This is a timely commitment, according to officials, especially as the government looks to maximize domestic revenue sources.
The CARF establishes standardized procedures for automatically exchanging information on crypto-asset users, helping tax authorities track income and enforce compliance—particularly across borders.
Finance Undersecretary Charlito Martin R. Mendoza formalized the Philippines’ pledge during the meeting, joining 67 other jurisdictions, including 10 across Asia, that aim to operationalize the framework by 2027 or 2028.
Tax authorities globally have identified at least €24 billion in additional revenues from 2009 to 2024 through various information exchange efforts. The OECD noted that in 2024 alone, €1.9 billion was recovered via requests and automatic exchange systems.
Crypto assets—previously difficult to monitor and regulate—have long been seen as fertile ground for both tax evasion and untapped tax revenues. By joining CARF, the Philippines is taking a step toward formalizing its oversight of the fast-growing digital economy.
The DOF also shared its experience adopting the Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and outlined domestic reforms to strengthen exchange-of-information protocols, including efforts to adopt Common Reporting Standards (CRS) and prepare for enhanced monitoring.
The Philippines joined the Asia Initiative in 2023, reinforcing its commitment to international tax cooperation and transparency. —Ed: Corrie S. Narisma
