Hi there 👋
This tutorial shows you how to label your Play-and-Earn operations.
Waltio takes care of your operations of this type.
💡 NFT/crypto rewards from play-to-earn are considered to have been obtained for free, so the token/NFT acquisition value will be 0.
Reminder on the taxation of NFTs:
The taxation of NTFs is complex. The tax regime for capital gains on digital assets (Article 150 V.H. bis of the General Tax Code) should not define NFTs as digital assets. Thus, there is a legal blur.
For practical purposes, Waltio reads them as cryptocurrencies. Therefore, the valuation of digital assets is done on the date of entry (the date of purchase). As a reminder, if NFTs perceived as digital assets, are exchanged for other cryptocurrencies, then this does not constitute a taxable event in our tool.
💡 To learn more about the taxation of NFT video games, you can read our blog post about it.
Here is a simple example:
You are a play-to-earn player, and you generate winnings for your participation in the game:
You earn 1 ETH and 1 NFT.
You withdraw 1 ETH from your game and deposit it on Binance.
--> It will be necessary to label the deposit transaction as “Other gain” on Waltio.
You sell the NFT you earned for 2,000 USDT. You then deposit the 2,000 USDT on Binance.
--> The deposit transaction should be labeled as “Other gain” on Waltio.
If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! 💬
The Waltio team