Sweden May Tax Virtual Transactions

Following China's lead, both Sweden and South Korea are actively working on legislation to tax in-game virtual transfer of virtual items.

We are not talking about taxing the sales of virtual for real money; this is already taxable in most countries. What the 2 countries are considering is the simple in-game trading between players with no real money involved.

Professor Edward Castronova of Indiana University ridiculed the idea. "I think it's an extraordinarily dangerous development. It's as if every time I played soccer in my backyard and scored a goal, I would have to pay the government three euros. It takes away the game's contribution to human happiness."

But Loyola Law School professor Theodore Seto explained the legal rationale for taxation:
"You can exchange your Lindens for dollars or Euros on a floating exchange rate any day at any time, without limit... It's easier to tax virtual transactions than it is to tax real-world transactions. The neat thing about it is, all transactions can be recorded. In the real world, we don't have that..."

"If 'gold' is not exchangeable for currency, and it's contrary to the rules, and they make it technically difficult to make the exchange, then I think we should treat the events in World of Warcraft as games. By contrast, Second Life actively markets itself as a venue for making real money."

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Comments

Sweden May Tax Virtual Transactions

oh the government s**t storm is brewing, they want to screw you were you least expect it in a video game.What is the purpose of the in game tax?To allow government officials to have a virtual gold trust for when they're playing mmos instead of doing their jobs?

Sweden May Tax Virtual Transactions

HAHAHAHAHAHA, no seriously, i can already see it:secretary- "Mr. President, we have 2 million gold and 15 trillions zenys on our coffers"president-"Good. Buy me that sword of uber-coolness and that heavy-machinegun of slaughter, i've always wanted them for my character"

Sweden May Tax Virtual Transactions

Soooo do you have to pay real money or the virtual money?If its real how would they base the rate on? the illegal black market of gold selling?If its virtual whats to the game devs from making a magic tax fairy that gives you the tax they took back to you i mean its all imaginary.....what would the government even do with virtual cash?Weird and to think they got payed REAL money to think up this s**t

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