Tax on trading in your country
What you learn in 3 minutesThis lesson shows which office in the Philippines expects to hear about trading results, how those results are treated for tax, and which records you should keep from your first trade. The figures are in pesos, written ₱, and the instrument is EUR/USD at about 1.0850.
One trade, one pip, and the peso figure that follows it
| Step | Amount | Note |
|---|---|---|
| Instrument | EUR/USD | the pair used in every example on this site |
| Price at entry | 1.0850 | the quote used for the calculation |
| Lot size | 0.10 lots | one tenth of a standard lot |
| Pip value on one standard lot | 10 units of the quote currency | 100,000 x 0.0001 |
| Pip value on 0.10 lots | 1 unit of the quote currency | 10 units divided by ten |
| Move in pips | 20 pips | the distance from entry to exit on the chart |
| Gross result in the quote currency | 20 units | 20 pips x 1 unit per pip |
| Gross result in pesos | ₱1,160 | 20 units x ₱58 per unit, the rate used here for illustration |
| Records to keep | date, pair, lot size, entry, exit, gross result, fees | one line per closed trade, kept from the first one |
The broker may round the pip value, add a commission, or apply a spread that is wider than the chart suggests, so the figure on your statement can differ from the one worked out here. The peso rate used above is illustrative and moves daily.
The mistake people make here
The common mistake is to treat a trading account as if it sits outside the tax system, and to keep no records until the year is over. By then the platform statements may be hard to find, and the gross figures are mixed up with deposits and withdrawals. Instead, keep one simple log from the first trade: date, pair, lot size, entry, exit, gross result, and any fees. Then the numbers are ready whenever a question is asked, and you are not reconstructing a year from memory.Check yourself
If one pip on a standard lot of EUR/USD is 10 units of the quote currency, what is the gross result in units for a 15 pip move on 0.20 lots?
Pip value on 0.20 lots is 10 units x 0.20 = 2 units per pip. A 15 pip move gives 15 x 2 = 30 units of the quote currency.
Using the same ₱58 per unit as the example, what is ₱1,160 divided by 20 units?
₱1,160 divided by 20 is ₱58 per unit, which is the rate used in the example.
In the Philippines
- Market regulator
- SEC Philippines
- Currency
- peso, written ₱ (PHP)
- Common funding methods
- GCash and bank transfer
- Records to keep
- platform statements, trade log, funding receipts
- When to ask
- before filing, confirm the current treatment with the authority or a tax professional