Massively http://massively.joystiq.com Massively http://www.blogsmithmedia.com/http://massively.joystiq.com/media/feedlogo.gif Massively http://massively.joystiq.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[China's virtual goods taxation sparks price increases and controversy]]>http://massively.joystiq.com/2008/11/19/chinas-virtual-goods-taxation-sparks-price-increases-and-contro/http://massively.joystiq.com/2008/11/19/chinas-virtual-goods-taxation-sparks-price-increases-and-contro/http://massively.joystiq.com/2008/11/19/chinas-virtual-goods-taxation-sparks-price-increases-and-contro/#commentsFiled under: , , , , , , ,


China's State Administration of Taxation recently imposed a 20 percent income tax rate on profits made from virtual currency and virtual items, sparking price increases for virtual goods. While this tax rate (if actually enforced) clearly impacts the virtual space, it also affects transactions happening outside of MMO servers and virtual world grids. The taxation policy could ultimately extend to the virtual currencies linked to the largest IM providers in China such as Tencent, drastically increasing the percentage of the population affected by the new laws. Despite this, the positive benefits of eliminating gray and black markets for virtual items and currency may outweigh the drawbacks for gamers and users of the various digital services in China.

Questions remain about what will and will not be taxed in the virtual space, but it's clear that individuals who gain virtual income are expected to declare their profits and pay taxes on this, and do so within seven days of having earned the profit, according to Shanghai Daily.Taxpayers who can provide proof of the value of this property or the value of the transaction are taxed at 20 percent on their profits, while those who cannot provide sufficient verification are taxed at three percent of the total transaction value. But how many people are affected by this new system?

Continue reading China's virtual goods taxation sparks price increases and controversy

MassivelyChina's virtual goods taxation sparks price increases and controversy originally appeared on Massively on Wed, 19 Nov 2008 19:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>asiablack-marketchinacontroversyeconomicseconomygoldgray-marketlawlegalmmo-industryrmtshanghaishanghai-dailytaxtaxestencentvirtual-currencyvirtual-goodsvirtual-itemsvirtual-taxationvirtual-worldszhu-shenshenWed, 19 Nov 2008 19:00:00 EST<![CDATA[Live Gamer interviewed about regulated RMT]]>http://massively.joystiq.com/2008/10/20/live-gamer-interviewed-about-regulated-rmt/http://massively.joystiq.com/2008/10/20/live-gamer-interviewed-about-regulated-rmt/http://massively.joystiq.com/2008/10/20/live-gamer-interviewed-about-regulated-rmt/#commentsFiled under: , , ,

We've mentioned a company called Live Gamer in the past here at Massively. Essentially, Live Gamer is attempting to legitimize real money trading (RMT) in virtual spaces, by partnering with game publishers to create a regulated secondary market for item sales and trades. The goal is to integrate RMT with MMOs and virtual worlds and usurp the myriad gold spammers and scammers currently plaguing most virtual spaces that feature economies.

Suzie Ford at WarCry recently interviewed Live Gamer Founder and President Andrew Schneider about how the company plans to change a $2 billion industry presently dominated by the black and grey market. The interview touches on the company's background, how the Live Gamer service works, and overall how they handle some of the polarizing issues of RMT in MMOs. Check out the full interview with Andrew Schneider over at WarCry for a brief overview of what Live Gamer is about.

Does the prospect of having a legitimate, regulated secondary market for avatars, virtual items, and currency in your MMOs seem like a step in the right direction?

MassivelyLive Gamer interviewed about regulated RMT originally appeared on Massively on Mon, 20 Oct 2008 20:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>andrew-schneiderblack-marketeconomygold-spammergray-marketgrey-marketinterviewslive-gamerreal-money-tradereal-money-tradingrmtscammersspammerssuzie-fordwarcryMon, 20 Oct 2008 20:00:00 EST