Two years ago I wrote about the idea of taxing virtual transactions. As I mentioned then the IRS’ view on this is, “That’s so weird.”
However, one country looked at this and decided that while it might be weird it’s too big of a pie not to tax. So China is implementing a tax on virtual transactions. The Shanghai Daily, quoted in the Guardian, states:
Once income is generated through the sale of virtual goods, individuals “should go to the tax department to pay personal income tax within seven days of the day after the transactions,” according to Shanghai Daily. Those who can provide proof of the value of the original property will see a 20 percent tax on their profits, while those lacking solid evidence will face charges equal to 3 percent of the total transaction.
The BBC notes that Sweden and South Korea are also looking into this. I do believe that one day the IRS, too, will attempt to tax that sale of 100 gold pieces.
Tags: VirtualTransactions