Philippines debates Axie Infinity taxation

Philippines finance undersecretary Antonette Tionko has called for the country’s authorities to step in and see if winnings from Axie Infinity can be subject to income tax.

Tionko believes they should be and the Philippines Department of Finance is looking into whether play-to-earn games should be levied with such a tax, or whether the player should be taxed on earnings.

Axie Infinity essentially has three main asset types. There is the Axie Infinity Shards (AXS) which is the network’s governing token. There is the Smooth Love Potion (SLP) that is used as in-game currency, and there are the NFTs. All three allow players to generate real-money value.

Even though there have been no exact numbers on how much players earn, it’s suggested that Axie Infinity has allowed many Filipinos to play and earn more in the game than they would at a regular job.

One player even bought two houses with his Axie Infinity earnings. The game itself generated almost $210m in July, with these numbers growing exponentially since Axie first launched.

Tionko has urged the country’s Securities and Exchange Commission and the central bank to look into the matter and see if the tokens that generate real-money value can be subject to income tax. However, the nature of those tokens, ie whether they constitute a security or a currency, is still unknown.

Axie Infinity is a hit with the locals, having been a new source of revenue and even a living for some. However, games should always be taken with a grain of salt. They are there to serve as a form of entertainment and not a profession.

You can enjoy great games at Bitcasino.io, 1xBit and FortuneJack and explore many blockchain gaming options.

Source

Updated: 08/26/2021 — 11:00