As folks turn to new moneymaking options with the economic downturn from traditional businesses, one arena seems untouched - and a possible haven for those wishing to cushion devaluing securities: the sale of virtual goods. Yep, it's still going on, and some places continue to turn real-money-transfer between players in online games and social virtual worlds into quite palatable bankables. Just witness the phenomenal sales opportunities on eBay Category 1654 (Internet Games) - just one of the marketplaces for this new economic world order.
A few years back, the US federal government looked closely at the issue of taxables on non-existent (take that with a pinch of salt, pedants) content based in universes fabricated by games people. That seems to have fallen by the wayside there. It was never even seriously brought up in the UK.
However, in China, where RMT represents $1.37bn active industry (often to the dismay of Western game players), the government has stepped in to tax the sale of virtual goods. According to Wired, they've recently laid out the details of their formal plans:
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.
More information at Shanghai Daily.
Saving a few pennies by skirting under the IRS with your RMT income isn't going to hack it in the Far East anymore. Keep an eye out if yo're trying to boost your savings on these shores too; these regulations may just come our way in the future.
