Latest news with #RalphRecto
Coin Geek
12 hours ago
- Business
- Coin Geek
Philippines to implement ‘crypto' tax framework by 2028
Getting your Trinity Audio player ready... The Philippine government has committed to adopt an international reporting framework for digital currency assets by 2028, aligning with global efforts to curb cross-border tax evasion and illicit financial flows. The move underscores the country's Department of Finance's (DoF) push to strengthen fiscal transparency as digital currencies become more mainstream in the country. 'We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions,' Ralph Recto, Finance Secretary, said in a statement. 'The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished.' Joining 67 jurisdictions in global tax transparency initiative Source: Department of Finance/Facebook During the 8th Asia Initiative Meeting held in Malé, Maldives, Finance Undersecretary Charlito Martin Mendoza formalized the country's commitment to adopt the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD). The CARF is designed to standardize the automatic exchange of tax information on crypto-assets across jurisdictions. The framework ensures that individuals and entities engaging in cross-border digital asset transactions cannot hide income or gains from tax authorities. The Philippines joins 67 jurisdictions, 10 of which are in Asia, that have pledged to implement the CARF by either 2027 or 2028. The timing of the country's commitment aligns with the end of President Ferdinand Marcos Jr.'s six-year term, during which fiscal discipline and transparency have been recurring themes. 'This is a timely commitment as digital currency becomes one of the preferred means for transactions,' Recto noted. Digital currency growth and risks in the Philippines Recto previously stated that Filipinos have invested an estimated PHP6 trillion ($107 billion) in digital currencies, more than double the combined size of the country's business process outsourcing and offshore gaming sectors. 'In the Philippines, a lot of Filipinos have already invested in crypto. Something like 6 trillion pesos worth of investments in crypto is being done,' Recto told Bloomberg in an interview earlier this year. He attributed this growth to a tech-savvy, youthful population and the widespread use of digital wallets, noting that 90 million Filipinos now use such tools to save, invest, and transact. However, third-party data paints a more measured picture. Blockchain analytics firm Chainalysis estimated the Philippines' 2024 crypto flows at $43.1 billion, down from $66 billion in 2023. The firm attributed the apparent 40% drop to revised methodologies for tracking decentralized finance (DeFi) activity. Despite the discrepancy, the numbers underscore the importance of tax authorities keeping pace with the rapid adoption of digital currencies. The decentralized and borderless nature of digital assets presents challenges for enforcement and taxation. Boosting exchange of information ahead of CARF rollout The DOF also reported on parallel efforts to improve tax transparency and compliance mechanisms. At the Asia Initiative Meeting, the department shared the country's progress in adopting the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), a multilateral tool for tax assessment and collection cooperation. It also outlined the steps taken to prepare for the Enhanced Monitoring Process, the strengthening of the Exchange of Information (EOI) on request, and the adoption of the Common Reporting Standards (CRS). The Asia Initiative aims to enhance international cooperation on tax transparency and combating illicit financial flows. The Philippines became a member in 2023 and has since been working to align with globally agreed-upon standards. The meeting also marked the launch of the 2025 Tax Transparency in Asia Report, which details regional progress made in applying tax transparency frameworks throughout 2024. Globally, efforts in tax transparency have proven effective. From 2009 to 2024, at least €24 billion ($27 billion) in additional revenue has been identified through EOI, offshore investigations, AEOI (Automatic Exchange of Financial Account Information), and related disclosure programs. In 2024 alone, €1.9 billion ($2 billion) in undeclared income was identified through these means. Raising revenue without tax hikes The CARF commitment comes as the Marcos administration reiterates its intention not to introduce new taxes. Instead, it aims to increase state revenue through improved collection and enforcement. This policy direction already has been bearing results, according to the government agency. In April 2024, revenue collection reached PHP522.1 billion ($9 billion), bringing the total for the first four months to PHP1.5 trillion($26 billion). Of this, 94% came from taxes, thanks to an 11.49% increase in tax revenues. The DOF says the digital currency framework complements these efforts by plugging gaps in areas where tax evasion risks are highest. Watch: The Philippines is moving toward blockchain-enabled tech title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
GMA Network
2 days ago
- Business
- GMA Network
PH to implement crypto-assets reporting framework
The Department of Finance (DOF) on Wednesday said the Philippines is committing to implement a framework on reporting crypto-assets in a bid to combat cross-border tax evasion and illicit financial flows. In a statement, the DOF said the commitment to execute the Crypto-Asset Reporting Framework (CARF) by 2028 was signified by DOF Revenue Operations Group Undersecretary Charlito Martin Mendoza during the 8th Asia Initiative Meeting in Malé, Maldives held from May 26 to 29, 2025. The CARF institutionalizes the framework for the reporting and automatic exchange of information in relation to crypto-assets between tax authorities for tax compliance purposes. The Philippines now joins 67 other jurisdictions already committed to implementing the CARF by 2027 or 2028. 'We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions. This is a timely commitment as digital currency becomes one of the preferred means for transactions,' said Finance Secretary Ralph Recto. 'The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished,' added Recto. —VAL, GMA Integrated News
Bloomberg
23-05-2025
- Business
- Bloomberg
Marcos Keeps Philippine Economic Team, Replaces Top Diplomat
Philippine President Ferdinand Marcos Jr. retained his economic managers in a sign of policy continuity amid a Cabinet shakeup, while replacing his top diplomat as tensions with China linger. Finance Secretary Ralph Recto and Special Assistant to the President for Investment and Economic Affairs Frederick Go will keep their posts, Executive Secretary Lucas Bersamin said in a briefing on Friday. The ministers for trade, economic planning and budget will also stay on, he said.
Free Malaysia Today
23-05-2025
- Business
- Free Malaysia Today
Marcos keeps Philippine economic team, replaces top diplomat
Philippine President Ferdinand Marcos Jr retained his economic managers in a sign of policy continuity. (EPA Images pic) MANILA : Philippine President Ferdinand Marcos Jr retained his economic managers in a sign of policy continuity amid a cabinet shakeup, while replacing his top diplomat as tensions with China linger. Finance secretary Ralph Recto and special assistant to the president for investment and economic affairs Frederick Go will keep their posts, executive secretary Lucas Bersamin said in a briefing today. The ministers for trade, economic planning and budget will also stay on, he said. Marcos decided to keep his economic team 'to enhance our economy in the eyes of the outside world and here in the Philippines', Bersamin said. Keeping his economic team intact should help ease any investor concern about Marcos' unexpected move yesterday when he asked his entire cabinet to resign. There were worries the revamp could be disruptive to an economy that's facing global risks with US tariff talks underway for most nations. Manila's main stock index rose 1.7% today. The fate of the ministers managing the economy was being closely watched, after slower-than-expected growth in the first quarter. Marcos' call followed a drop in his popularity and his candidates' underwhelming performance in the midterm senate election last week. The retention of Go and trade secretary Cristina Roque will also help sustain Manila's efforts to lobby for lower US tariffs, after their recent talks with American officials. Meanwhile, the Philippine leader named veteran diplomat Maria-Theresa Lazaro as the new foreign affairs secretary, replacing Enrique Manalo. Lazaro has represented the Philippines in talks with Beijing on the South China Sea dispute. Lazaro's appointment comes shortly after tensions with China in the contested waters flared anew, with Manila accusing Beijing of once again using water cannon. The Philippines under Marcos has asserted its claims to the resource-rich waterway, while strengthening security ties with the US. Marcos also transferred energy secretary Raphael Lotilla to helm the environment department. Outgoing top envoy Manalo will become the country's permanent representative to the United Nations.
Bloomberg
23-05-2025
- Business
- Bloomberg
Philippines' Marcos Keeps Economic Team Amid Cabinet Shakeup
Philippine President Ferdinand Marcos Jr. retained Ralph Recto as his finance chief and the rest of his economic team amid a Cabinet revamp, signaling continuity in his economic agenda. Recto will keep his post, Executive Secretary Lucas Bersamin said in a briefing on Friday. The ministers for trade, economic planning and budget will also stay on, he said.
