The Finance Department said that income from online play-to-earn games, such as Axie Infinity, are taxable.
Finance Undersecretary Antonette Tionko said that online multiplayer games that allow players to earn are subject to income tax.
The DOF and Bureau of Internal Revenue (BIR) are looking into Axie Infinity. The game was developed by Vietnamese studio Sky Mavis.
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In a Manila Bulletin report, Axie Infinity, allows players to earn in-game cryptocurrencies that could then be traded and exchanged to pesos.
The players must buy three pets and hatch their eggs before battling with other players.
“But regardless of how it is characterized, it’s taxable, subject to income tax,” Tionko said.
The DOF official added that the owner of Axie is not yet registered with the BIR.
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A digital pet on Axie used to cost around P250 but due to its popularity, a digital pet now costs at over P30,000.
“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,” she said.
“Remember the principle of taxation, it’s a flow of wealth,” Tionko added. (TDT)
