China Sends Tax Collectors Into Online Worlds
from the good-luck-with-that dept
A few years back, we discussed whether or not politicians would eventually try to tax virtual world winnings. After all, if there's an exchange rate to real money with fake virtual money (as there usually is), then wouldn't holding all your money in these virtual dollars be seen as something of a tax dodge? Indeed, Australia took the lead in this two years ago, with plans to tax virtual earnings. Now, it appears that China has signed up as well, and will begin taxing any virtual world earnings at 20%.This actually follows on a failed attempt to ban earning any money on the trade of virtual currencies. That ban had been announced last year, basically as a way to avoid dealing with the taxation issue. When the Chinese government realized that people were ignoring the rules and still earning and trading money in virtual worlds, it reversed course and has now added the 20% tax. What's unclear, of course, is how they plan on enforcing it. Will China take some of its tens of thousands of Great Firewall employees and send them into World of Warcraft for an audit?
Filed Under: china, tax collectors, taxes, virtual worlds
