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.
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.
What do you think about the Philippines government wanting a cut of the earnings people make from Axie Infinity? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.