Income derived from playing cryptocurrency-based gaming platforms were subject to tax, according to BIR.
On Tuesday, the Bureau of Internal Revenue (BIR) said that income derived from playing cryptocurrency-based gaming platforms, such as “Axie Infinity”, were subject to payment of income taxes.
During the “Laging Handa” briefing, BIR Deputy Commissioner for Legal Group Marissa Cabreros said that the service of playing was where players earn income as players got benefits or currency which were used for trading or converted into money for payment.
Cabreros also said that there’s a flow of income going into players and that income can be taxable. In Axie Infinity’s online play-to-earn scheme, players can earn income via swapping or selling “Small-Love Potions” (SLPs) into cash.
“It doesn’t mean na napunta kayo sa digital arena o digital world, eh hindi na kayo magdedeklara o hindi na kayo taxpayer,” Cabreros said.
Cabreros added that under the Tax Reform for Acceleration and Inclusion (TRAIN) law, a player was exempted from paying income tax if his/her net income for an entire year didn’t exceed PHP 250,000.
Nonetheless, Cabreros said that all players whether a “breeder” or “scholar” as long as they earned income from playing the play-to-earn game, they’re subject to payment of income tax.
Players were urged to register at the BIR’s New Business Registration system which can be accessed on the agency’s website.
Prior to this, Finance Undersecretary Antonette C. Tionko said that earnings from Axie Infinity and other online play-to-earn games were subject to income tax.
Meanwhile, Axie Infinity or game developer Sky Mavis wasn’t registered as a corporation with the Securities and Exchange Commission (SEC).