China tax of the day
Last year China banned the sale of virtual currency in an effort to
shut down "gold farmers" — businesses that hire young Chinese to play
video games all day and sell the proceeds (in the form of game currency
or magic items) on eBay(EBAY) or online
.
The Chinese government did nothing to enforce its own ban, so it
remains to be seen whether Beijing follows up with its latest edict:
Gamers who sell virtual goods for a profit will be taxed at 20% of the
proceeds, the same rate applied to profits on real estate or other
transactions.In December 2005 the New York Times estimated 100,000 Chinese were employed full-time
in the gold farming industry, and consulting group iResearch says the
virtual currency trade is a $1.4 billion dollar industry growing at 15
to 20% a year.
Here is the story and thanks to Alex Rosen for the pointer.