When it comes to the most successful games launched in the crypto-blockchain industry, Axie Infinity has proven to be the most advantageous one. Out of all the countries where the game is being played heavily, the Philippines is currently on top where Axie Infinity is being played on a large scale.
By playing the particular game, the Axie Infinity players in the Philippines have made a lot of income. This is the reason why the local Department of Finance (DoF) in the Philippines has decided that it is going to implement taxes on the gamers.
The Department of Finance has announced that it is going to implement taxes on the profits and salaries Axie Infinity players make playing the game. Axie Infinity is one of the most popular and widely played games that is powered by cryptocurrencies.
Axie Infinity is known as a play-to-earn game that offers players profits and incomes for playing the game. As a result, the Department of Finance is going to go ahead and demand a cut out of the profits that the players are making.
The report around the implementation of the taxation on the income from the particular game has been published by the regulator on Monday, August 23, 2021. In the announcement, Antonette Tionko, the Finance Undersecretary of the Philippines has talked about the tax implementation on game profits.
He stated that as the players are able to make profits and generate income from the play-to-earn games, such finances are subject to taxation. Therefore, the players making money through any games belonging to the same category must pay taxes to the government.
Tionko stated that according to the Philippines law on assets, no matter the kind or type, they are taxable by the government. As the Philippines’ law views cryptocurrencies as digital assets, therefore, taxes will be implemented on them.
It does not matter how the users are able to get their hands on cryptocurrencies. If they are in possession of digital assets/cryptocurrencies, they must pay taxes that are applicable. Every citizen in the Philippines, in possession of digital assets/cryptocurrencies, must report them.
The reports also suggest that the lawmakers in the Philippines are also in the process of classifying non-fungible tokens and other native tokens on the platform as currencies or securities.
At present, Axie Infinity Shards (AXS) and Smooth Love Potion (SLP) are the native tokens on the Axie Infinity platform. Once the government of the Philippines decides the status of the non-fungible tokens and native tokens, taxes will be implemented on these assets.
Tionko stated that they are currently looking into the matter and the entities looking into it are the Securities and Exchange Commission of the Philippines and the local central bank.