Axie Infinity developers were off to “good start”, according to DOF.
The Department of Finance (DOF) said that the developers of the popular play-to-earn game Axie Infinity were off to “good start”.
The DOF has recognized the effort of Sky Mavis in urging Axie Infinity players to abide by government laws.
Last August 26, Sky Mavis tweeted that the company urged Axie community members to “abide by the laws of their home countries”.
“As creator and inventor of the #1 NFT [non-fungible token] game, Axie Infinity, we take pride in providing a fun and entertaining experience while cultivating a player-owned ecosystem,” said Sky Mavis, adding that play-to-earn was an “important shift in the nature of work”.
Reacting to a tweet from Sky Mavis, Finance Secretary Carlos G. Dominguez III told reporters that Sky Mavis realized a “good start”.
According to Dominguez, Sky Mavis has gotten off to a “good start” after the tech-focused game developer called upon players of Axie Infinity to abide by the law of their respective countries.
It was last week when the DOF’s Revenue Operations Group flagged that Sky Mavis wasn’t registered with the Bureau of Internal Revenue (BIR).
Finance Undersecretary Antonette C. Tionko explained that while Sky Mavis was a non-resident foreign corporation, the company’s income derived from sources within the Philippines should be covered by local taxes.
According to Tionko, earnings of Philippine-based players from Axie Infinity were taxable.
“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,” said Tionko.
Meanwhile, the Bangko Sentral ng Pilipinas (BSP) said that Axie Infinity wasn’t considered as a VASP or virtual asset service provider.