Philippines to Tax Axie Infinity Earners

Popular play-to-earn game Axie Infinity to be subjected to tax?

Philippines’ Department of Finance Undersecretary Antonette C. Tionko said that earnings from P2E games are subject to tax.

The undersecretary underscored that the Bureau of Internal Revenue (BIR) is putting a microscope on Axie Infinity itself.

Currently, the game created by the Vietnamese through Mavis Hub is booming in the Philippines.

Axie Infinity is a blockchain game that rose to popularity during the pandemic. The game gained the interest of the Filipinos as it allows people to earn while staying at home.

Particularly, the game demands players to have a team called “Axies”. These axies allow players to breed, fight in adventures, player-vs-player setups, to earn the digital currency called “Smooth Love Potion” (SLP).

Meanwhile, the Department of Finance undersecretary admitted that the office has yet to characterize the game.

“But regardless of how it is characterized, it’s taxable, subject to income tax,” told the head who also leads the Revenue Operations Group of the department.

She also mentioned that the game is not registered in the country.

Although created from another country, the undersecretary maintained that it still generates income within the country.

“It is not registered in the Philippines. That is one of the things that we hopefully capture once we have that system of registration for non-residents. It’s not in the Philippines, but certainly, whoever earns currency from it, you should report it,” she told.