Axie Infinity is a blockchain-based game that makes it possible to make money playing. These gains are now taxable in the Philippines.
Axie Infinity has not only ignited an impressive fireworks display, but also offers residents in developing countries a lucrative income opportunity that is sufficient to live on. In the Philippines, for example, there are more and more players who now earn their livelihood with the blockchain game. But the whole thing is apparently not tax-free. The Philippine Ministry of Finance has now made this clear in a statement. Profits from games like Axie Infinity are taxable in the Philippines, reports the Manila Bulletin citing the Ministry of Finance.
Antonette Tionko, Undersecretary of the Philippine Ministry of Finance, clarified elsewhere:
Axie Infinity is not registered in the Philippines. This is one of the things that we will hopefully capture once we have this system of non-resident registration. It’s not in the Philippines, but of course anyone who makes money from it should report it.
Win games with Axie (AXS) as a livelihood
The international non-profit organization “Rest of World” reported on August 19th about residents of developing countries who earn their living with Axie Infinity (AXS). In this article, the 31-year-old Philippine RK Secretario was introduced. He lived for more than two years by selling rice feed to poultry farmers. The gross domestic product per capita in the Philippines in 2019 was US $ 3,485.08, US $ 290.42 per month. The pandemic hit him hard, the lockdown and various natural disasters restricted his employment. He was faced with an existence-threatening challenge. Because he not only had to look after himself, but also other family members, like his grandmother.
It was exactly at this point that he came across a new computer game: Axie Infinity. He immersed himself in the world of cute little monsters and today he earns US $ 2,000 a month by playing a blockchain game.
It’s really, really, really hard to find a regular job, especially in our province. At Axie, the earning potential is better and it is safer to stay at home too.
so RK Sexretario opposite the rest of the world
Axie Infinity definitely changed his life. It is certainly no coincidence that 40 percent of Axie Infinity players are from the Philippines. Because more and more Filipinos are doing like RK Sectretario – they earn more money when they play Axie Infinity than with a conventional job. In 2019, a Filipino earned an average of $ 4,135.57, or $ 344.63 a month. In contrast, the 2,000 US dollars, the RK Sectretario, look downright luxurious.
Scholarships at Axie Infinity (AXS)
To fight in Axie Infinity you need at least three Axie, that’s the name of the cute little monsters in the game. The cheapest Axie is currently available for $ 109. But there is already a price jump of over 100 US dollars for the next cheapest Axie. And if you want a strong monster to fight, the game can easily land you over $ 1,000. The barriers to entry for the game are high, especially if you only earn a few hundred US dollars a month.
This is exactly why so-called Axie “Scholarships” are becoming increasingly popular in some countries. In these programs, some mentors lend Axies to interested parties so that they can take part in battles with the monsters. This is advantageous for both sides: the “mentor” receives a kind of commission on the “in-game income” and the player has the opportunity to participate in Axie and receives the remaining income. In addition, Axie Scholarships allow mentors to bypass the maximum of 3 Axies per player.
The growing popularity of Axie Infinity is evident elsewhere as well. On August 24th, the Discord Channel of the blockchain game had a proud 800,000 members. For comparison: Fortnite, one of the most popular and successful games in the world, has only 788,000 members with its Discord Channel.