The last week of the summer of 2021 remains, and apparently in honor of this event, Deputy Finance Minister of the Philippines Antonette Tiono said that income from gaming platforms is subject to income tax. And the speech, of course, is about Axie Infinity. Although I think for many it is obvious that the main reason is the rapid growth in the popularity of NFT games with the Play-to-Earn mechanism, especially in those regions where the value of these gaming assets has increased by more than 100 times.
Axie Infinity, a blockchain game whose popularity has grown exponentially in the world, and in the Philippines in particular, amid the pandemic, the crypto game allows players to earn in-game cryptocurrencies, which can then be exchanged on the exchange for fiat currencies.
But to start playing the game, players need to purchase three digital pets called "Axie", which they will breed as descendants of characters that can be used on the battlefield. There are cryptocurrency rewards for completing the battle.
In doing so, Tionko acknowledged that the "characterization" as to whether the Axie is a currency or a security remains unresolved by the Securities and Exchange Commission (SEC) and Bangko Sentral ng Pilipinas (BSP).
Antonette Tionko also added that Sky Mavis are not registered with the BIR and although Sky Mavis is a non-resident foreign corporation, the company's revenues from sources in the Philippines must be covered by local taxes, even though Vietnam-based Sky Mavis.
Here is the news. I wonder if you will need to register your IP in the metaverse? 🙂
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