Filipino players of Axie Infinity, an NFT based which is quite popular in the Philippines, will now be taxed on the crypto earnings pocketed by the gamers, according to various regional reports by Manila Bulletin and others.
The Philippines Bureau of Internal Revenue (BIR) has been working to seize players who failed to pay taxes on their crypto gains, explained by Finance Undersecretary Antonette Tionko.
It was reported that the Treasury and the Internal Revenue Service have been paying particular attention to Axie Infinity as online games became more popular in the Philippines, driven by the global pandemic.
Axie Infinity is a play-to-earn game that allows gamers to earn its token ‘SLP’ which is tradable on exchanges. Emerging countries like Indonesia and Brazil along with The Philippines have seen an influx of players in the Axie community. The company revealed that over 2.5 million transactions have been made in this month alone with the transaction volume worth $1.1 billion.
Tionko said in a statement:
“Is it a security? Is it a currency? So those are the things that will help us define the rules on how it should be taxed. But regardless of how it is characterized, it’s taxable — subject to income tax.”
He further explained that developers of Axie Infinity have not registered with the Internal Revenue Service and though it is a company based out of Vietnam, it will be subject to taxation from the Philippine government.