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Department of Finance: Axie Infinity Creator Off to a Good Start

Photo for the Article - Department of Finance: Axie Infinity Creator Off to a Good Start

By Shiela Bertillo

The Department of Finance (DOF) Secretary Carlos G. Dominguez III said that Sky Mavis, the Vietnamese company of Axie Infinity,  has gotten off to a “good start” after it encouraged its players to abide by the laws of their respective countries.

In a tweet last thursday, August 26, Axie Infinity’s account stated that the Sky Mavis “encourages Axie community members to abide by the laws of their home countries.” and that they “look forward to working with physical nations (governments) on a path forward that encourages innovation and empowers gamers. “

The Bangko Sentral ng Pilipinas (BSP) said that it is closely monitoring Axie Infinity in regards to how players and merchants are using and exchanging Smooth Love Potion (SLP) as a form of payment. The central bank is also looking into the possibility that Axie Infinity may be classified as an operator of payment system (OPS), and if it is, Axie Infinity or Sky Mavis should register as one. (Read More: BSP Closely Monitors Local Axie Infinity SLP Merchants System)

Accordingly, last week, DOF Undersecretary Antonette C. Tiono said that earnings from playing online games are taxable as its income is derived from sources within the Philippines and revealed that both the department and the Bureau of Internal Revenue (BIR) are looking into Axie Infinity.

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“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,” Tionko said.

Atty. Marissa Cabreros, BIR Deputy Commissioner for Legal Group, explained in a Laging Handa public briefing that income via digital platforms shall be taxable, as indicated in the Revenue Memorandum Circular (RMC) No. 97-2021. (Read More: BIR, DOF are Looking Into Axie Infinity, Earnings are Taxable says Finance Undersecretary)

“Sakop din sila (Axie Infinity players) ng RMC 97-2021 kasi ang tinutukoy doon is lahat ng activities, lahat ng serbisyo na ang ginagamit mo is online or via digital platform,” Cabreros stated.

Cabreros added that monitoring taxpayers, as well as their sources of income is the mandate of the BIR.

Source: Manila Bulletin

This article is published on BitPinas: Department of Finance: Axie Infinity Creator Off to a Good Start

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