Philippine Deputy Finance Minister Antonette Tionco has proposed taxing profits from the sale of Axie Infinity collectible tokens and other NFTs.
During the pandemic, the popularity of NFT games in the Philippines has skyrocketed, as they can provide local residents with income comparable to local wages. In May, a young Filipino resident reported that by selling SLP tokens, he managed to make money on real estate and buy two houses.
Given the popularity of the NFT Axie Infinity game among the local population, Tionko believes that people who play such games to earn money and sell non-fungible tokens are obliged to pay income tax to the state on the profits made. The official acknowledged that local legislators have not yet determined which category the Smooth Love Potion (SLP) in-game tokens and Axie Infinity Shards (AXS) tokens should fall into: currencies or securities.
Tionko called on the Central Bank of the Philippines and the Philippine Securities and Exchange Commission to resolve the issue as soon as possible in order to determine the tax rules for the NFT. She added that Sky Mavis, the Vietnamese game studio that developed Axie Infinity, is not registered with the Philippine Internal Revenue Service. After Tionko’s announcement on August 24, the SLP token fell 15% to $ 0.133.
“Cryptocurrencies are an asset, so they are already taxed in the Philippines. It doesn’t matter how people make money on them, they are obliged to report any income received from cryptocurrencies, ”said the Deputy Minister of Finance.
Local regulators are tightening requirements for cryptocurrency firms. At the beginning of the year, the Central Bank of the Philippines introduced compulsory licensing for companies working with cryptoassets.

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