The Department of Finance (DOF) has formally committed to adopting the Crypto-Asset Reporting Framework (CARF) by 2028, as part of efforts to combat cross-border tax evasion and illicit financial flows. This aligns with President Ferdinand R. Marcos Jr.’s fiscal agenda focused on efficient and transparent tax administration.
Finance Secretary Ralph G. Recto emphasized the need for “faster and stronger systems for collaboration” in the digital age, citing the growing role of crypto-assets in financial transactions. “The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished,” Recto said.
The commitment was announced by undersecretary Charlito Martin R. Mendoza of the DOF Revenue Operations Group at the 8th Asia Initiative Meeting in Malé, Maldives, co-chaired by tax authorities from the Maldives and Armenia.
CARF, developed by the OECD, sets a global standard for the automatic exchange of information on crypto-assets among tax authorities to enhance tax compliance. The Philippines joins 67 jurisdictions, including 10 in Asia, targeting full implementation by 2027–2028.
In the same forum, the DOF also highlighted its reforms to boost tax transparency, including efforts to meet Enhanced Monitoring Process requirements and align with the Common Reporting Standards (CRS). It further shared its experience implementing the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC), which enables cross-border tax cooperation.
The Philippines joined the Asia Initiative in 2023, a regional effort to enforce global standards on exchange of information (EOI) and tax transparency. According to the Asia Initiative, international tax transparency tools have led to EUR 24 billion in additional revenue globally from 2009 to 2024, including EUR 1.9 billion in 2024 alone through EOI and automatic exchanges.
The 2025 Tax Transparency in Asia Report, launched at the event, tracks jurisdictional progress across the region in applying these standards to address tax evasion and financial crime.
