Players earning from the popular blockchain-based video game Axie Infinity are now subjected to pay income tax, the Department of Finance (DOF) in the Philippines said.
<h2><strong>The Philippines Wants to Tax Axie Infinity Players</strong></h2>
Philippines’ Finance Undersecretary Antonette C. Tionko told local media outlet <a href="https://mb.com.ph/2021/08/23/axie-infinity-earnings-subject-to-tax-dof/" target="_blank" rel="nofollow noopener"><em>Manila</em> <em>Bulletin</em></a> that profits generated from online video games are now subjected to income tax and reporting requirements. In particular, Tiono revealed that the Department of Finance and Bureau of Internal Revenue (BIR) is examining Axie Infinity which is not yet registered in the Philippines.

Developed by Vietnam-based studio Sky Mavis, Axie Infinity falls under a non-resident foreign corporation in the Philippines.
<blockquote><em>“Cryptocurrency is an asset, so it’s already taxable in the Philippines. What kind of tax applies? Certainly, the gains are subject to income tax.” </em></blockquote>
Whether Axie can be considered as a currency or security is yet to be determined by the Securities and Exchange Commission and the country’s central bank. Regardless of whichever classification it falls under, such platforms are subjected to taxation, according to the government official.
<h2><strong>Earning from Trading Axies Pet</strong></h2>
Axie Infinity is an online video game inspired by Pokémon that allows users to <a href="https://www.cryptoknowmics.com/news/filipinos-earning-cryptocurrency-and-nfts-by-playing-video-games/">earn crypto tokens</a>. While players cannot yet monetize NTFs they gain in the game itself, trading pet Axies online generates thousands of pesos when sold.

Players can obtain the <a href="https://www.cryptoknowmics.com/news/axie-infinity-price-prediction-2021-2025-axs-token-can-hit-40-by-2025/">electronic pets</a> called “Axies” by purchasing NFTs, and get more tokens through breeding, fighting, and trading advanced pets’ NFTs. The earned tokens could be then exchanged for fiat currency.

Over the past month, Axie Infinity's native AXS token has increased rapidly. On Aug. 11, the token managed to reach a then all-time high price of $77.48. The token recently reached a new all-time high on Aug. 21 but is currently trading inside a bearish pattern.

Amid the COVID-19 quarantine, <em>CNBC</em> in May reported thousands of Filipinos getting addicted to play-to-earn games like Axie Infinity, bringing in millions of dollars in revenues for video game players.

Philippines Wants to Impose Tax on Axie Infinity Players' Video Game Earnings

Players earning from the popular blockchain-based video game Axie Infinity are now subjected to pay income tax in the Philippines.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Philippines Wants to Impose Tax on Axie Infinity Players' Video Game Earnings

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