Taxation on Virtual Goods? Loling.

G UNOT · Jan 8, 2011

So yeah, I am in my first year university (B.Comm) and was looking at some articles one of them mentioned that taxes will be imposed on virtual items (sales). So, I was like hey lets search this... and look what I find...

Link: http://en.wikipedia.org/wiki/Gold_farming

In 2005 The New York Times stated that there were over 100,000 professional, full-time gold farmers in China alone.[12] And in 2006 sales of such virtual goods were thought to amount to somewhere between 200[11] and 900 million USD.[5]
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200-900Mill USD - What the fuck?

Law, regulation and taxation

Awakening to the idea that virtual goods can have real value, some governments have taken action in this area.
[edit] Australia

In 2006 a spokesperson for the Australian Government stated normal earned income rules also apply to income from the sale of virtual goods.[20]
[edit] China

The Chinese State banned using virtual currency to buy real-world items in 2009 but not the reverse.[21]
[edit] Japan

In response to increases in gold farming, in 2006 the Japanese Government urged the industry to self-regulate as well as vowing to investigate this species of fraud.[22]
[edit] Korea

A Korean high court's 2010 ruling means that exchanging virtual currency for real money is legal in the country, although subject to taxation.[23][24]
[edit] US

A US Congressional committee investigated taxation of virtual assets and incomes in 2006,[25][26] and the IRS has, in its National Taxpayer Advocate's 2008 Annual Report to Congress, expressed concern that virtual worlds are a growing source of tax noncompliance.[27]
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What do you guys think?... Is this the future? Or is it just me?

driveahonda · Jan 8, 2011

Lol. America is messed up

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Taxation on Virtual Goods? Loling.

G UNOT Apprentice

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Taxation on Virtual Goods? Loling.

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