Get Ready To Pay Taxes From Playing Axie and Blockchain

Get Ready To Pay Taxes From Playing Axie and Blockchain

Blockchain games are becoming increasingly fpopular during the pandemic, and players of the popular blockchain game Axie Infinity will soon have to pay taxes for every victory they receive from the platform.

The Department of Finance (DOF) stated that income from gambling and similar online gaming platforms is subject to income tax by the law.

“Whoever earns currency from it, it’s income you should report it,” said Finance Undersecretary Antonette Tionko.

Axie Infinity players can earn cryptocurrency and non-fungible tokens (NFT) by planting fantasy creatures called “axes.” 

Players cannot profit from the NFT in the game, but they can trade and sell pet axes online in exchange for thousands of pesos.

“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,” Tionko told the media.

Although the nature of the asset has yet to be decided by the Securities and Exchange Commission (SEC) and Bangko Sentral ng Pilipinas (BSP), the fact that it generates monetary returns makes it taxable. Sky Mavis, an online video game developer from Vietnam. During the pandemic, the game became popular among Filipinos because people looked for entertainment, and as a reward, they made money while playing the game. Sky Mavis, is not registered as a company, nor is it licensed to sell or trade securities in the Philippines.

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