According to a regional report, the Philippines Bureau of
Internal Revenue (BIR) is focusing on the blockchain-powered game Axie
Infinity over tax concerns. Finance Undersecretary Antonette Tionko
explained to the press that BIR is looking into methods aimed at
capturing Axie Infinity players failing to pay their income taxes.
Philippines Bureau of Internal Revenue Wants Its Cut From Axie Infinity Earners
The Ethereum-game “Axie Infinity” has made waves not only in the
crypto realm but also in terms of mainstream media attention. The game
has gathered a lot of popularity and the native tokens called axie
infinity (AXS) and smooth love potion (SLP) have seen significant gains
this year.
In places like the Philippines and Venezuela
people are earning a lot of money playing Axie Infinity. In fact, some
players are earning more playing Axie Infinity than they would at their
9-5 jobs.
The Philippines government has caught wind of these earnings and just like all global tax collectors, BIR wants its cut. In a press release
published by the tax authority, the agency and the region’s finance
undersecretary Antonette Tionko say “Axie Infinity earnings are subject
to tax.”
Philippines Finance Undersecretary: ‘Remember the Principle of Taxation, It’s a Flow of Wealth’
Tionko stressed that regulators have not decided on whether or not
“Axie” is a currency or security and believes that decision is up to the
Securities and Exchange Commission (SEC). Tionko also thinks the
central banking authority Bangko Sentral ng Pilipinas (BSP) should weigh
in on the Axie Infinity subject.
“But regardless of how it is characterized, it’s taxable, subject to
income tax,” Tionko insisted on August 23. “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,” Tionko added.
The creators of the Ethereum-powered game Axie Infinity Sky Mavis are
based in Vietnam. Tionko further stressed to the public that all
internet schemes that allow people to make money are subject to income
taxes. “Remember the principle of taxation, it’s a flow of wealth,”
Tionko concluded.
source link : https://news.bitcoin.com/philippines-tax-agency-targets-axie-infinity-players-its-taxable-subject-to-income-tax/
