Do you make money from playing cryptocurrency-based gaming platforms such as Axie Infinity? Well, sorry to be the bearer of bad news, but according to the Bureau of Internal Revenue (BIR), the income you make from playing online is still subject to taxes.
As per GMA News Online, BIR encourages players to pony up, and pay their taxes. “Ang serbisyo ng paglalaro diyan kayo binabayaran ng income. Nabibigyan kayo ng benefits o currency na ginagamit o tini-trade ninyo to convert into money at nagagamit pambayad (The service of playing is where you earn income. You get benefits or currency which are used for trading or converted into money for payment.),” BIR Deputy Commissioner for Legal Group Marissa Cabreros said.
“At the end of the day may flow of income na pumasok sa ating players (there is a flow of income going into players) so income din po ‘yan na pupwede pong maging taxable (so that income can be taxable),” Cabreros said.
In case you’re out of the loop, Axie Infinity has a play-to-earn business model. Basically, players can make money by swapping or selling “Small-Love Potion” or SLPs, earned while playing.
“It doesn’t mean na napunta kayo sa digital arena o digital world, eh hindi na kayo magdedeklara o hindi na kayo taxpayer (It doesn’t mean when you enter the digital arena or digital world, you are exempted from declaring income and being a taxpayer.),” Cabreros said.
The BIR official said that if a player’s income for an entire year doesn’t exceed P250,000, he shouldn’t have to pay taxes. However, if you’re not part of the group exempted from paying taxes, BIR encourages players to register at the BIR’s New Business Registration system which can be accessed on the agency’s website.