The Department of Finance (DOF) announced that the Philippines will be implementing a framework on crypto-assets to address cross-border tax evasion and illicit financial flows.

During the 8th Asia Initiative Meeting in Malé, Maldives, the DOF stated that the country is committed to executing the Crypto-Asset Reporting Framework (CARF) by 2028.

The CARF aims to establish a framework for reporting and exchanging information related to crypto-assets among tax authorities for tax compliance purposes.

Joining 67 other jurisdictions, including 10 in Asia, the Philippines is dedicated to implementing the CARF by 2027 or 2028 to enhance collaboration and combat tax evasion and illicit transactions.

Finance Secretary Ralph Recto emphasized the importance of faster and stronger systems for collaboration to ensure that crypto-asset users pay their fair share of taxes and prevent illicit financial activities.

At the Asia Initiative meeting, the DOF shared the country's experience in adopting the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), a multilateral instrument for administrative cooperation in tax assessment and collection.

The DOF also highlighted administrative reforms to strengthen the exchange of information, preparations for the Enhanced Monitoring Process, and efforts to adopt the Common Reporting Standards to promote greater tax transparency.

The meeting unveiled the 2025 Tax Transparency in Asia Report, showcasing the progress made by Asian jurisdictions in implementing tax transparency standards to combat tax evasion and illicit financial flows.

Since joining the Asia Initiative in 2023, the Philippines has been committed to adhering to internationally agreed-upon standards on transparency and exchange of information to address tax evasion and illicit financial flows.

Adherence to tax transparency standards is crucial, as at least EUR24 billion in additional revenue from 2009 to 2024 has been identified through various measures such as EOI requests, offshore investigations, and AEOI.

In 2024 alone, EUR1.9 billion was identified through EOI requests and AEOI, emphasizing the significance of implementing effective tax transparency measures.