Players’ earnings from the popular play-to-earn online game Axie Infinity are subject to income tax, the Bureau of Internal Revenue (BIR) said on Tuesday (24 Aug).
BIR Deputy Commissioner for Legal Group Atty. Marissa Cabreros clarified in a Laging Handa public briefing on Tuesday that gains via online or digital platforms shall be taxable, as indicated in the Revenue Memorandum Circular (RMC) No. 97-2021.
“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 said.
Cabreros said it is the mandate of the BIR to monitor tax payers, as well as their sources of income.
“Ang guiding principle natin, basta may kinita sa kung anumang bagay na ginawa natin, kailangan [ay] ideklara iyan sa BIR,” Cabreros said.
“It doesn’t mean na napunta kayo sa digital arena or digital world ay hindi na kayo mag-de-deklara o hindi na kayo taxpayer. Naiba lang iyong means and ways of earning income,” she added.
Axie Infinity allows players to earn income through non-fungible tokens (NFTs) and cryptocurrencies by trading digital pets called “axies”.
Finance Undersecretary Antonette Tionko earlier said cryptocurrency is an asset, which makes it taxable in the country.
“It’s not in the Philippines, but certainly, whoever earns currency from it, you should report it. Remember the principle of taxation, it’s a flow of wealth,” Tionko said.
Players are encouraged to register at BIR’s New Business Registration (NewBizReg) portal. – Report from PTV News / CF-rir
