Is this reasonable?

[Yamifoud]

In my country, the Philippines, crypto owners are urged to declare their crypto capital gains for annual tax filing. This means that we are urged to pay taxes, and I don't think this is reasonable enough since crypto was not yet considered a legal tender.

Crypto regulation in the Philippines is in a quasi-legal state as of now. It is not yet accepted completely, nor has been completely outlawed. Cryptocurrency transactions are legal in the Philippines , however, the crypto coins are not considered “legal tender”.

The Philippines government has implemented a capital gains tax of up to 15% on cryptocurrency transactions to regulate and tax the growing crypto market. The tax applies to profits made from selling or exchanging cryptocurrencies and purchases made using crypto.

source: https://coinpedia.org/cryptocurrency-regulation/cryptocurrency-regulations-in-philippines/

I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.

[kotajikikox]

In my country, the Philippines, crypto owners are urged to declare their crypto capital gains for annual tax filing. This means that we are urged to pay taxes, and I don't think this is reasonable enough since crypto was not yet considered a legal tender.

It is quite unreasonable since it is obvious that the government only wants the benefits of crypto without actually fixing everything there is to fix regarding crypto in the country. They do not even provide protection for crypto holders and yet wants to tax them? It is ridiculous for me.

I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets?

A lot of crypto enthusiasts do not even want their identity revealed. They often hide that they own crypto not only because they do not want to pay taxes but because it is for their own safety as well. I will not be surprised if many do not file crypto in their taxes.

[Despairo]

Do The Philippines consider stock, ETF, precious metal, real estate as a legal tender? if a country accept Bitcoin regardless in any "form", you high likely need to pay taxes except the country declare crypto is tax free.

Honestly I think if a country accept Bitcoin as a legal tender and you use Bitcoin to purchase something, it's no longer need to be taxed. Because we need to treat Bitcoin is same to fiat, people only get taxed when you get paid, not when you purchase something.

But, in your article, there was written "The tax applies to profits made from selling or exchanging cryptocurrencies and purchases made using crypto.", so they will tax everything.

[ancafe]

In my country, the Philippines, crypto owners are urged to declare their crypto capital gains for annual tax filing. This means that we are urged to pay taxes, and I don't think this is reasonable enough since crypto was not yet considered a legal tender.

They can do anything without consent so whether or not the tax imposed on crypto is reasonable is an agenda to gain benefits from government programs. That's how the government works because all they think about is income through the tax sector and that is a huge profit that they can get for free through the growth of crypto and exchanges.

In my country it is the same because the government considers taxes through exchanges and when we make transactions, deductions will be made automatically. But to go further I don't understand how your country taxes crypto but almost most countries will probably consider taxes as one of the income they can get from crypto.

[Perfectbaby]

Well sincerely the government are feeling cheated about bitcoin and cryptocurrency at large. If I am not mistakenly I have had similar news without our country to start taxing all cryptocurrency traders and those who involved in any form of transactions using cryptocurrency, although I didn't see as something legal because, they can't tends to restrict cryptocurrency transactions/trading and still request for taxations from those who are trading it.

Does this looks presentable? To me it's entirely No! It would be better they declared it a legal tender and imposed taxations this would be fine because at then every is open to use it and while paying tax they wouldn't feel it anymore becoming it's openly acceptable.

[avikz]

I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.

This statement makes complete sense! If crypto is not yet a legal tender and you can't use to purchase goods or services, then it shouldn't be taxed. But unfortunately, that's how government works! In my country as well, crypto is not a legal tender. However, government has imposed 30% tax on crypto assets and it is ongoing since last 2 years now.

If you are not using any local crypto exchange, I don't think you should be declaring your crypto assets at all. But if you are already using a local exchange, then you data is already available with the government. So if you don't declare, you may receive a tax notice. I will suggest you to speak to a professional tax lawyer to understand the situation in a better way and decide accordingly. 

[mindrust]

It is reasonable as long as you agree with the law. Nearly everybody is experiencing the same thing all around the world. If you have made profits from crypto trading, the government will want its share. That’s how taxes work.

You may not like it and try to find ways to avoid it but most of the time these actions will bring you more trouble.

The solution is simple. If you don’t like the current environment you are in, either move to some other country or vote for some other people that promise less taxes.

[boyptc]

It doesn't need to be a legal tender for the government to tax crypto or bitcoin gains. For as long as it is considered as an income, it can be classified to the taxation of income gains.

But a person needs to sell or convert it first into fiat before being qualified to taxation. That is what at least I know for it to be taxable but each country does have a different rule to this.

[pooya87]

Bitcoin doesn't have to be considered legal tender to be taxed specially if we are talking about capital gains tax. It can be categorized as an asset which makes it even easier to tax it since it makes more sense to tax an asset or property than to tax legal tender.

Is it reasonable? Well, taxes never are! But I think if they want to tax anything they should tax traders who make profit from ups and downs of the market. Nowadays almost all centralized exchanges are KYC'd so it is easy to tax the traders.

[Coojhb]

This can be a trap set by governments to make a record of how many crypto hodlers are in the country. Whether you file your crypto return or not, it's someone personal choice but one keep this point n mind that once you declare your crypto asset it will be diffcult to get rid of government tax agencies. Our country has banned crypto that's why there is no such regulations here.

[pinggoki]

Do The Philippines consider stock, ETF, precious metal, real estate as a legal tender? if a country accept Bitcoin regardless in any "form", you high likely need to pay taxes except the country declare crypto is tax free.

Honestly I think if a country accept Bitcoin as a legal tender and you use Bitcoin to purchase something, it's no longer need to be taxed. Because we need to treat Bitcoin is same to fiat, people only get taxed when you get paid, not when you purchase something.

But, in your article, there was written "The tax applies to profits made from selling or exchanging cryptocurrencies and purchases made using crypto.", so they will tax everything.

I think it's personally a matter of trying to squeeze out the public out of their money, look at it this way, some of the functions in the government are on the verge of bankruptcy already and seeing how blatant the corruption scandals happening right now, it's logical to think that they will try and tax people in any way they can because they know that crypto has a potential and the money to be made is there, to answer the question in the title, this is reasonable to a sense where you know that you're going to benefit from those taxes but seeing how the Philippines is right now, I lean more on the side that this taxation is unreasonable and just a way squeeze people that are already having a hard time navigating an expensive economy.

[letteredhub]

In my country, the Philippines, crypto owners are urged to declare their crypto capital gains for annual tax filing. This means that we are urged to pay taxes, and I don't think this is reasonable enough since crypto was not yet considered a legal tender.

Crypto regulation in the Philippines is in a quasi-legal state as of now. It is not yet accepted completely, nor has been completely outlawed. Cryptocurrency transactions are legal in the Philippines , however, the crypto coins are not considered “legal tender”.

The Philippines government has implemented a capital gains tax of up to 15% on cryptocurrency transactions to regulate and tax the growing crypto market. The tax applies to profits made from selling or exchanging cryptocurrencies and purchases made using crypto.

source: https://coinpedia.org/cryptocurrency-regulation/cryptocurrency-regulations-in-philippines/

I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.

Upon that cryptocurrency is said to be in a "quasi-legal condition" in the country it makes no rationality to exercise any form of tax from its activities. What the government should have done foremost was to first put every security measures in place through the country's sec that would ensure the protection of crypto users against any manipulations and scams and somehow grant cryptocurrency in its jurisprudence some relative legality as a currency before forging on with a 15% tax on crypto transactions and others.

There actions rather gives the impression that the government over there in your country is just after what they could get in profit from taxing those dealing on crypto. Nothing more, and it's really bad coming from them.

[davis196]

Crypto might not be accepted as a legal tender in your country, but it is definitely considered a financial asset.
I'm sure that Bitcoin and the big altcoins would never be accepted as a legal tender in most countries around the world. El Salvador declared BTC a legal tender, but this changed in January 2025. Most people around the world must declare their crypto holdings for tax purposes.
Making silly excuses like "I will pay taxes over crypto only when cryptocurrencies become a legal tender" won't work.
It's up to you to decide whether or not to declare your crypto holdings and capital gains. Only you can calculate the consequences of your actions.

[nullama]

In my country, the Philippines, crypto owners are urged to declare their crypto capital gains for annual tax filing. This means that we are urged to pay taxes, and I don't think this is reasonable enough since crypto was not yet considered a legal tender.
~snip~

The thing is that most countries see Bitcoin as an asset. Similar to buying shares, or index funds, etc.

So, they see any gains you make by selling them as a capital gain. It's the same as if you sell your shares, index fund, etc. You get a tax event where you might need to pay capital gains tax.

It has nothing do to with it being considered legal tender. If anything, if it was considered legal tender, then there would be no capital gains.

[Yamifoud]

I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.

This statement makes complete sense! If crypto is not yet a legal tender and you can't use to purchase goods or services, then it shouldn't be taxed. But unfortunately, that's how government works! In my country as well, crypto is not a legal tender. However, government has imposed 30% tax on crypto assets and it is ongoing since last 2 years now.

It was just 15% in our country, but I feel too much already. They only look for their benefit, not how these traders and investors risk their money. They impose taxes but never see how we could benefit from it.

A lot of crypto enthusiasts do not even want their identity revealed. They often hide that they own crypto not only because they do not want to pay taxes but because it is for their own safety as well. I will not be surprised if many do not file crypto in their taxes.

Certainly, we are going to that situation, and most of us fail to put everything we have and cheat them. We might violate the law, but it is because of their wrongdoing and approaches.

[Felicity_Tide]

In my country, the Philippines, crypto owners are urged to declare their crypto capital gains for annual tax filing. This means that we are urged to pay taxes, and I don't think this is reasonable enough since crypto was not yet considered a legal tender.

~snip

 I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.

I don't think crypto must be a legal tender first, before the government can tax a user. If they actually have plans on taxing, then it means that it has been recognized, therefore it is not illegal. It is even impossible to declare all crypto assets legal tender, except there is a specific( like Bitcoin which we've seen in two countries).

Besides there are centralized exchanges that operates and process transactions of Philippine citizens, so I believe this tax payment will only be visible while making transactions, and not necessarily declaring your entire crypto assets.

Let's be honest, not sure if anyone will be stupid enough to declare all of his/her Hodlings to the government. At the end of the day, it still boils down to exchanges doing the work for the government, and at this point, those who do their hodlings on an exchange might eventually face something different.

[michellee]

Even if that is unreasonable, your people who owns cryptocurrency can not do anything except follow what the regulator say. Your government can impose tax to their citizen especially for those who own crypto. They see crypto can be a new sources of income for the country.

You can only hope that the tax from cryptocurrency can be used to developing the country and in the right reason.

[Hatchy]

It is reasonable as long as you agree with the law. Nearly everybody is experiencing the same thing all around the world. If you have made profits from crypto trading, the government will want its share. That’s how taxes work.

You may not like it and try to find ways to avoid it but most of the time these actions will bring you more trouble.

The solution is simple. If you don’t like the current environment you are in, either move to some other country or vote for some other people that promise less taxes.

Somehow it still doesn't sum up the fact that crypto is yet to become a legal tender in the Philippines. Government just want to prive their way through anything that can help the growing youths. If they so want to tax crypto users, then why not make it legal so no one would hide their transactions using crypto. This is where decentralisation comes in. If we have more decentralised platform to aid our transactions and increase privacy, then I don't think the government would even have their way with this. Alot of exchanges we have now imposes kyc on their users so it might be difficult for alot of persons to run away from these taxes.

[Swapter.io]

Since you specified that we are talking about "capital gains," then yes, such income is subject to taxation. However, on the other hand, you mentioned that cryptocurrency is still not considered legal tender in your country. This creates a rather ambiguous situation. 

There is also a somewhat vague wording: "It is not yet accepted completely, nor has it been completely outlawed." This sounds as if the government is not yet officially ready to recognize cryptocurrency as legal tender but is already prepared to impose taxes on it (which is exactly what you are referring to). 

So, in my opinion, if your income is not too large, there are probably not going to be any questions. However, if I were in your place, I wouldn’t declare this type of income.

[_act_]

I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.

Bitcoin and other cryptocurrencies are legal in Philippines but it is not a legal tender. If they are legal, that means they can be taxed. Only El Salvador made bitcoin a legal tender and no other countries. You are allowed to do whatever you like with bitcoin and other cryptocurrencies in Philippines. So why should it not be taxed when it is legal.