How to declare profits in Axie Infinity?

How to declare profits in Axie Infinity?

If you are already earning money in this game you may be wondering how to declare winnings in Axie Infinity? And it's normal, many people who are currently earning money within this server does not know or has not looked for a way to explain what he is doing, which may sound suspicious at tax time.

If you handle this information well, you can even make a profit or lose money unnecessarily, so to speak. knowledge is better "digested" if it can be easily and quickly explained to another person.

We can make an example specifically for Spain with Bankinter. https://www.bankinter.com/banca/inicio here; a small list appears where you are charged taxes based on your declared incomeIf the person has been self-employed for two years, he/she can apply for registration and pay the flat rate of 60 euros per month.

Needless to say, this conversation may upset some people, because we are talking about taxes and there is nothing that bothers a person more than being talked about being taxed. high sums of moneyAlthough everyone has their own point of view and it is totally valid.

Following the previous example, there are two types of taxes, investment earnings and the one you attribute to your work, we enter in the last one (previous image). To declare your taxes correctly you should know that in Axie Infinity you handle three currencies, SLP, AXS and Axies which are tokens.

Are axies also a cryptocurrency?

As hard as it may be for you to assimilate this, let us tell you that that simple character that you play with every day since you started playing Axie Infinity, is indeed a cryptocurrency and this can be seen in your Ronin wallet specifically in the ERC721 network, also appear the terrains of the same game, these two things are distinctly yours and unique.

The studio does not pay you to play, you are generating the tokens, i.e. you are mining. When you withdraw the game tokens and exchange it at Binance https://www.binance.com/es for example, everything you do with them is profit since you have not bought the coin in question and have not spent much time with them.

The aforementioned profits are declared as self-employed in the form of an invoice. If you made 1000 Euros you declare it in the form of a invoice which has a cost of 21% so your profit is 826,44 Euros.

For the example of the 1,000 Euros, it is necessary to take into account the VAT which is declared every three months, so that every 12 months you will obtain 9,917.35 Euros of benefit, this value the following year (according to Bankinter) is subtracted a 19%, so that you would be left with 8,033.05 Euros finally.

We know it's a very annoying or tedious thing to do all this, but it's necessary so you know how much money you'll actually be making for yourself so you can explain what you do when you have to declare taxes with the government or any other institution.

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