Axie Infinity (AXS) is booming - Philippines now wants to tax players

Axie Infinity is a blockchain-based game that makes it possible to earn money while playing. In the Philippines, these winnings are now taxable.

Axie Infinity has not only sparked impressive share price fireworks, but also provides residents in developing countries with a lucrative income opportunity sufficient to live on. In the Philippines, for example, you’ll find more and more players now earning their livelihoods from the blockchain game. However, the whole thing is apparently not tax-free. The Philippine Department of Finance has now clarified this in a statement. Profits from games like Axie Infinity are taxable in the Philippines, reports the Manila Bulletin, citing the Department of Finance.

Antonette Tionko, Undersecretary of the Philippine Department of Finance, clarified elsewhere:

Axie Infinity is not registered in the Philippines. That’s one of the things that we hope to capture once we have this system of registration for non-residents. It’s not in the Philippines, but of course anyone making money from it should report it.

Gambling winnings with Axie (AXS) as a livelihood

The international non-profit organization Rest of World reported on August 19 about residents of developing countries who earn a living from Axie Infinity (AXS). The article featured 31-year-old Filipino RK Secretario. The latter lived for more than two years by selling rice feed to poultry farmers. The gross domestic product per capita in 2019 in the Philippines was US$3,485.08, US$290.42 per month. The pandemic hit him hard, the lockdown and various natural disasters limited his gainful employment. He was faced with a challenge that threatened his existence. Because not only did he have to take care of himself, he also had to take care of other family members, like his grandmother.

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It was 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 makes $2,000 a month playing it – by playing a blockchain game.

It’s really, really, really hard to find a regular job, especially in our province. With Axie, the earning potential is better and it’s also safer to stay at home,

RK Sexretario told the rest of world

Axie Infinity has definitely changed his life. Surely, it is also no coincidence that 40 percent of Axie Infinity players are from the Philippines. That’s because more and more Filipinos are doing like RK Sectretario – earning more money playing Axie Infinity than in conventional gainful employment. In 2019, this is how a Filipino earned on average 4,135.57 US dollars, or 344.63 US dollars a month. In comparison, the US$2,000 that RK Sectretario provides seems downright luxurious.

Scholarships at Axie Infinity (AXS)

To fight at Axie Infinity, you need at least three Axie, the name of the cute little monsters in the game. The cheapest Axie can currently be purchased for 109 US dollars. But already to the next cheapest Axie there is a price jump of over 100 US dollars. And if you want a strong monster to fight, the game can quickly land you at over $1,000 US. So the barriers to entry for the game are high, especially if you only make 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 they can participate in battles with the monsters. This is mutually beneficial: the “mentor” receives some sort of commission on the “in-game revenue” and the player has the opportunity to join Axie and receives the remaining revenue. In addition, Axie Scholarships allow mentors to bypass the 3 Axies per player maximum.

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Axie Infinity (AXS) is booming - Philippines now wants to tax playersAxie Infinity (AXS) is booming - Philippines now wants to tax playersAxie Infinity (AXS) is booming - Philippines now wants to tax playershttps://marketplace.axieinfinity.com/axie

Axie Infinity’s growing popularity is evident elsewhere. As of August 24, the blockchain game’s Discord Channel boasts a whopping 800,000 members. By comparison, Fortnite, one of the most popular and successful games in the world, only has 788,000 members on its Discord Channel.