Virtual Worlds Taxed from Today by South Korea: oh second life

By: Daniel Chubb | Posted: July 1, 2007 | No Comments
Filed under: Gaming, News

Virtual Worlds Taxed
We have spoken before on the debate (is second life a game or more than that), I am convinced that it is much more than a game and in that virtual world people are able to live and do things they never can in the real world.

Countries are starting to get involved when it comes to loss of income for the government that will always want their money and tax.

The Korean National Tax Service will be taxing virtual worlds from today; VAT will be converted to real-money transactions (RMT) in virtual worlds.

People do set up businesses in virtual worlds like second life and some people try and keep a low profile to avoid paying taxes.

What the Korean National Tax Service have said:
Sellers who do more than 12 million won/half year in business will need a business license and will pay the tax by themselves

Sellers who do between 6 and 12 million won [~$6,500 - $13,000]/half year in business will have VAT auto applied by transaction’s middle-man

People are earning money in virtual worlds and it is not very easy to tax, there are so many questions and loop holes.

How is the industry going to respond? And who exactly is responsible for the tax?
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