According to a regional report, the Philippine Tax Office (BIR) is focusing on blockchain-based gaming Axie Infinity for tax reasons. Under Secretary of Finance Antonette Tionko told reporters that the BIR is investigating methods to capture Axie Infinity players who do not pay their income taxes.
The Ethereum game “Axie Infinity” has made waves not only in the crypto arena, but also in terms of mainstream media attention. The game has grown in popularity and native tokens called axie infinity (AXS) and smooth love potion (SLP) have seen big gains this year.
In places like the Philippines and Venezuela, people are making a lot of money playing Axie Infinity. In fact, some players earn more playing Axie Infinity than they would at their 9-5 job.
The Philippine government has heard of these gains, and like all global tax collectors, the BIR wants them reduced. In a statement released by the tax authorities, the agency and regional under-secretary of finance Antonette Tionko state that “Axie Infinity’s income is subject to tax.”
Under Secretary of Finance of the Philippines: “Remember the principle of taxation, it is a flow of wealth”
Tionko pointed out that regulators have not decided whether or not “Axie” is a currency or a security and believes that this decision is up to the Securities and Exchange Commission (SEC). Tionko also believes that the central banking authority Bangko Sentral ng Pilipinas (BSP) should intervene on the subject of Axie Infinity.
“But however it is characterized, it is taxable, subject to income tax,” Tionko insisted on August 23. âIt is not registered in the Philippines. This is one of the things that we hope to capture once we have this registration system for non-residents. It’s not in the Philippines, but certainly anyone who makes money from it, you should point it out, âTionko added.
The creators of the Ethereum based game Axie Infinity Sky Mavis are based in Vietnam. Tionko further pointed out to the public that all Internet programs that allow people to earn money are subject to income tax. âRemember the principle of taxation, it’s a flow of wealth,â Tionko concluded.
What do you think of the Philippine government that wants a cut in the income people get from Axie Infinity? Let us know what you think of this topic in the comments section below.
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Antonette Tionko, axie infinity, Axie Infinity Shards, axs, Bureau of Internal Revenue, Under Secretary of Finance, Philippines, Philippines BIR, Philippine Government, Philippine Tax Agency, Sky Mavis, SLP, Smooth Love Potion, Taxation, Tax Concerns, Returns tax, Taxation, Taxes, Vietnam
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