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Axie Infinity facing taxes in the Philippines

Axie Infinity is a gaming platform created by Sky Mavis to make money through compatible tokens and cryptocurrencies by raising, fighting, and selling digital creatures online, known as Axies. People worldwide have shifted towards online earning platforms during the Covid period. And during this time, the Philippines residents have been recorded to play the most online games and have seen a rise in their incomes through online gaming.

Filipinos mostly use quick cash loans in the Philippines to make buying and selling easier. Since the Philippines has not reached an advanced level yet, cash is still one of the most preferred modes of payment among Filipinos, and hence, digital currency is a foreign concept. Taking a cash loan is how they deal with online payments; it is one of the country’s most popular means of lending money.

Filipino individuals commonly use Allthebestloans since it allows users to borrow money from a supplier. With this online money, gamers can conduct additional online transactions, which in this example, is the purchase of axies.

What is Axie Infinity?

Axie Infinity is one of the most popular blockchain games. Over the years, it has encountered Anxiety, Confusion, and Uncertainty, but now it has regained stability and has a high value along with millions of users. For purchasing the Axie Infinity coin online, a commonly used platform is Allthebestloans.com, a popular financing site. This organization provides simple loans online without the need for security, beneficiaries, or submitting several paperwork.

Axie Infinity, which Sky Mavis created, is a Vietnamese gaming company, which has surpassed one million daily users, and its monthly income has risen from $103,000 in January to $364 million.  The company was recently valued at $3 billion after raising $150 m in a Series B fundraising deal headed by Andreessen Horowitz. The game earns money by offering a 4.25 percent service charge to users who trade on its marketplace. 

Axie Infinity is a complicated game system that comes with two cryptocurrencies: an in-game coin called Smooth Love Potion (SLP) that has an infinite supply and a regulatory currency called Axie Infinity Shards (AXS) that has a total amount of $27,000,000. SLP is an in-game network that produces incentives and prizes that can also produce axies — the in-game species. Players may also exchange their axies (the game’s currency) for Axie Infinity Slivers (AXS), a cryptocurrency that can be sold for digital currencies. The cost of one AXS reached is almost $60 and is expected to rise more in the future.

The growing use of Axe Infinity in the Philippines!

The growing influence of Axie Infinity in the Philippines and the substantial cash that Filipino users may generate from it have caught the attention of the state’s Federal board Of revenue. According to Sky Mavis, just the Philippo users accounted for 29,000 of the 70,000 downloads of the game in 2020.

There are three cryptocurrency sources in the Philippines, trading, mine, and play-to-earn,” the state recognizes. Hence any earnings through these means are liable for a tax deduction. So, people who make money from the Axie Infinity play-to-earn game must pay taxes.

As the game’s popularity grew, so did the Philippine government’s determination to address a challenge that policymakers worldwide are grappling with: how to tax this new type of online revenue.

The government focuses on two types of internet revenue: income of social media influencers and money obtained through online earning games like Axie Infinity.

With no global legal standard to draw on, Filipino gamers, companies, and official consultants struggle to figure out how a taxation system might be imposed on these types of earnings—and trying to assess if this type of income, which is obtained via numerous, small in-game operations and is frequently earned by individuals who are outside the tax structure. How can this system be applied to the mass market?


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