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.

In October, China’s tax authority announced that it would focus on a previously ignored sector of its economy: the trade in virtual goods and currency. Sweden and South Korea have also moved to clarify the tax rules for virtual money.

Rule #1 – don’t tax the fun that hackers and techies have. They will find a way around it.
Rule #2 – see rule #1. Then see rule #2 again.

Tags: trouble in paradise

This entry was posted on Friday, July 3rd, 2009 at 13:05.