The Department of Finance (DOF) has recognized the effort of Sky Mavis, the Vietnamese company behind the play-to-earn game Axie Infinity, in encouraging players to abide by government laws.
Finance Secretary Carlos G. Dominguez III said that Sky Mavis has gotten off to a “good start” after the tech-focused game developer called upon Axie Infinity players to abide by the law of their respective countries.
On Twitter on Aug. 26, Sky Mavis wrote that the company “encourages Axie community members to abide by the laws of their home countries.”
Sky Mavis also stated that the gaming studio looks “forward to working with physical nations (governments) on a path forward that encourages innovation and empowers gamers.”
“As creator and inventor of the #1 NFT [non-fungible token] game, Axie Infinity, we take pride in providing a fun and entertaining experience while cultivating a player-owned ecosystem,” Sky Mavis said.
“We’re proud that Axie’s global playerbase can buy and sell to anyone, anywhere and earn an income through this blossoming digital economy,” the company added.
Reacting to Sky Mavis’ tweet, Dominguez told reporters that the creator of Axie Infinity realized a “good start.”
Sky Mavis said “Play-to-earn is an important shift in the nature of work.”
Last week, the DOF’s Revenue Operations Group flagged that Sky Mavis was not registered with the Bureau of Internal Revenue.
Finance Undersecretary Antonette C. Tionko also explained that while Sky Mavis is a non-resident foreign corporation, its income derived from sources within the Philippines should be covered by local taxes.
Tionko also said that earnings of Philippine-based players from Axie Infinity are taxable.
Axie Infinity is a blockchain game whose popularity rose exponentially in the country amid the pandemic. It allows players to earn in-game cryptocurrencies that could then be traded and exchanged to pesos.
“It is not registered in the Philippines. That is one of the things that we hopefully capture once we have that system of registration for non-residents. It’s not in the Philippines, but certainly whoever earns currency from it, you should report it,” Tionko said.
“Remember the principle of taxation, it’s a flow of wealth,” she added.