DOF: Axie Infinity and other online play-to-earn games earnings are taxable

Almost a week after BIR's warning to social media influencers, the Department of Finance (DOF) has announced that online play-to-earn games are subject to tax.

Axie Infinity

"Remember the principle of taxation, it’s a flow of wealth"—DOF

Axie Infinity had been making rounds online for almost two months now. It also got the Department of Finance's attention, too. 

According to DOF Undersecretary Antonette C. Tionko, earnings from online gaming platforms are subject to income tax. She also mentioned that both the DOF and Bureau of Internal Revenue (BIR) are looking particularly into Axie Infinity.

Usec. Tionko also revealed that the creator is not registered with BIR.

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 Antonette C. Tionko, Undersecretary of the Department of Finance.

As a quick recap, Axie Infinity is created by Vietnamese developer Sky Mavis in 2018. Basically, it's a turn-based RPG that allows users to buy, sell, trade, trade, breed, and battle cuddly digital pets dubbed as "axies".

Aside from online play-to-earn games, Tionko reminded the public as well that earnings from all online money-making schemes over the past few months are subject to income tax.

What do you think guys?

Via: Manila Bulletin