How Is Cryptocurrency Taxed by the BIR in the Philippines? No Special Rate, Just General Rules

The Philippines has no BIR-issued regulation dedicated specifically to cryptocurrency taxation — and that absence is exactly why so many online guides get the rate wrong. A common claim circulating in crypto tax content is that Philippine crypto gains are taxed at a flat 15% capital gains tax, the same as shares of stock. That rate is specific to unlisted domestic shares under NIRC Section 24(C); it does not extend to cryptocurrency by default, because crypto isn’t a share of stock or Philippine real property — the NIRC’s only two flat-rate capital gains categories.

No dedicated crypto issuance — and why that matters #

As of this writing, the BIR has not issued a Revenue Regulation or Revenue Memorandum Circular that specifically addresses how cryptocurrency transactions are taxed. That means crypto-related income falls under the NIRC’s general provisions, applied by the same principles used for any other kind of property, rather than under crypto-specific guidance the way, for example, digital service providers now have RMC No. 59-2026 on VAT. Absence of a dedicated rule is not the same as absence of tax — the NIRC’s definition of gross income is broad enough to capture gains from any property disposal, digital or otherwise.

The 15% capital gains tax myth #

NIRC Section 24(C) imposes a flat 15% capital gains tax specifically on the sale, barter, exchange, or other disposition of shares of stock in a domestic corporation not traded through the local stock exchange. The statutory text, as amended by the TRAIN Law, is narrowly scoped to that one asset class:

“The provisions of Section 39(B) notwithstanding, a final tax at the rate of fifteen percent (15%) is hereby imposed upon the net capital gains realized during the taxable year from the sale, barter, exchange or other disposition of shares of stock in a domestic corporation, except shares sold or disposed of through the stock exchange.”

This site relied on established secondary restatements of NIRC Section 24(C) for this passage, as the full Tax Code text could not be reached directly to re-verify the exact wording — confirm the precise statutory text before relying on it for a formal filing position. Nothing in that text mentions cryptocurrency, digital assets, or property generally — it names shares of stock in a domestic corporation specifically. NIRC Section 24(D) imposes a separate flat 6% capital gains tax specifically on the sale of Philippine real property classified as a capital asset. Cryptocurrency is neither. A number of general crypto tax explainer sites nonetheless describe Philippine crypto gains as subject to “a flat 15% capital gains tax,” apparently extending the unlisted-shares rate to crypto by loose analogy rather than by an actual statutory or regulatory basis — this site does not repeat that claim, because no cited BIR issuance or NIRC provision supports applying the Section 24(C) rate outside its stated scope of unlisted domestic shares.

What actually applies: the general capital asset rules #

Absent a crypto-specific rate, a gain from selling cryptocurrency held as a capital asset falls under the NIRC’s general capital asset provisions in Section 39, which apply to individual taxpayers through a holding-period rule rather than a flat rate. Under that general rule, only a percentage of the gain is recognized as taxable depending on how long the asset was held before sale — 100% of the gain if held 12 months or less, and 50% of the gain if held more than 12 months — with the recognized amount then added to the taxpayer’s other income and taxed at the regular graduated individual income tax rates, not at a flat capital gains rate.

Business trading vs. investment holding #

Someone who buys and sells cryptocurrency regularly and substantially enough that it amounts to carrying on a trade or business is generally taxed on the resulting gains as ordinary business income, not as capital gains from an occasional disposal. That distinction changes more than just the applicable rate — it also determines what expenses can be deducted against the income and removes the Section 39 holding-period discount that only applies to capital assets, not to inventory-like trading activity.

Worked example: an individual investor’s crypto sale #

An individual buys ₱200,000 worth of a cryptocurrency as a personal investment and sells it 18 months later for ₱500,000, realizing a ₱300,000 gain, having made no other crypto sales during the year.

The two approaches can produce very different results depending on the taxpayer’s overall income and bracket — which is exactly why relying on a generic “15% flat” claim, without a cited BIR or NIRC basis for extending that rate to crypto, risks a materially wrong self-assessment.

Related reading #

For how the BIR treats other online and digital-economy income where guidance is more developed, see Online Sellers and Content Creators: BIR Tax Obligations, and for the general capital asset distinction underlying the holding-period rule discussed here, see Capital Gains Tax vs. Real Property Tax.

Frequently Asked Questions #

Does the BIR have a specific tax rate for cryptocurrency gains? #

No. As of this writing, the BIR has not issued a dedicated Revenue Regulation or Revenue Memorandum Circular specifically setting a cryptocurrency tax rate. Cryptocurrency transactions are taxed under the NIRC’s general income tax and capital asset provisions, applied by analogy, rather than under a crypto-specific rule.

Is cryptocurrency taxed at the same 15% flat capital gains tax rate as stocks? #

No, and this is a common error in generic crypto tax guides. The 15% flat capital gains tax under NIRC Section 24(C) applies specifically to shares of stock in a domestic corporation not traded through the local stock exchange. Cryptocurrency is neither a share of domestic corporate stock nor Philippine real property, so it does not fall within either of the NIRC’s two specific flat-rate capital gains categories.

How are gains from selling cryptocurrency actually taxed, then? #

If cryptocurrency is held as a capital asset — acquired for investment rather than as inventory of a trading business — a gain on its sale is generally treated under the general capital asset rules in NIRC Section 39, which include a holding-period rule for individual taxpayers: only 100% of the gain is recognized if the asset was held for 12 months or less, and only 50% of the gain is recognized if held for more than 12 months, with the recognized amount then taxed at the individual’s regular graduated income tax rate rather than a flat rate.

Is buying and selling crypto as a regular activity taxed differently from an occasional investment sale? #

Yes, potentially. If someone engages in crypto trading regularly and substantially enough that it constitutes carrying on a trade or business, the resulting gains would generally be treated as ordinary business income rather than as capital gains from an occasional investment disposal, which changes both the applicable deductions available and removes the capital-asset holding-period discount.

Do I need to report crypto income to the BIR even without a specific crypto form? #

Yes. The absence of a dedicated crypto issuance does not exempt crypto-related income from tax — it falls under the NIRC’s general definition of gross income, which is broad enough to capture gains and income from any source, including digital assets, and must be declared through the taxpayer’s regular annual income tax return.

Summary #

The BIR has no cryptocurrency-specific tax regulation, and the widely repeated claim that Philippine crypto gains face a flat 15% capital gains tax rests on an unsupported analogy to the unlisted-shares rate. Absent that specific rule, crypto held as a capital asset falls under the NIRC Section 39 general holding-period rules and graduated income tax rates instead — a materially different, and often lower, computation than the flat-rate claim implies.