Saw this article on several game sites. Apparently China's State Administration of Taxation announced it will impose a 20% income tax on profit from virtual money. What do you think?
But don't most games prohibit transactions involving in-game currency/items and real currency?
I know that Guild Wars currently bans those who sell gold and items for cash and those who purchase them because it violates the terms of service agreement.
I think that taxing goods in games is not a very good idea. this rule could open up a whole new area of things governments can tax. about games banning this, sometimes a person will put an item on a site like ebay or something and after the item is bought the seller will have their character give the item to the buyers character. this keeps the game companies from knowing it is happening.
7 comments:
This is definately a first.. well that I know of.
But don't most games prohibit transactions involving in-game currency/items and real currency?
I know that Guild Wars currently bans those who sell gold and items for cash and those who purchase them because it violates the terms of service agreement.
My mom says that if they are going to tax virtual money...they get virtual tax money too.
Haha I thought this sums it up.
That is crazy how can they define what is real or not? and what do they consider the item to be, is it just goods or services, this is really Strange.
I think that taxing goods in games is not a very good idea. this rule could open up a whole new area of things governments can tax.
about games banning this, sometimes a person will put an item on a site like ebay or something and after the item is bought the seller will have their character give the item to the buyers character. this keeps the game companies from knowing it is happening.
Well people already tax you on vertual goods. just look at iTunes.
About taxing virtual money though?
That just seems odd.
I know that it might sound dumb to tax virtual world money but then again it is a form of income and so the government can tax it if they want.
Now on the other hand, it it were taxing my virtual world money I would be pretty mad because I really wouldnt want to pay tax.
All I know is second life better watch out because their players will proabaly start making lots of money off of them!
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