BBC Tackles International Gold Taxation
How do you tax the interwebz tubes?
China has already figured out how to make money from gold farming, they tax it (in theory so far). Of course that seems a bit easier in China where almost everything is controlled by the government. Using China as one example, the BBC provides some good insight into the countries currently looking to establish taxes or at least parameters for virtual goods (like Sweden and Korea). We seem to be riding in the untaxed wild west here in the United States, but at some point the same arguments are going to be made by our government (that they are not getting tax revenue from transactions that should be taxed) so it is good to stay up on current events (consider his your social studies lesson for the day). According to the BBC:
Slowly but surely authorities around the world are turning their attention to online games and virtual worlds and the tax-exempt status of the economic activity taking place within them.
They are places where people can make virtual millions selling land, property, weapons and even people. But as tax havens their days may be numbered.
Yet another reason to stay away from gold farming, selling and real money transactions. For the rest of the report, go to the BBC.