MindArk Working on Wills for Virtual Property; Swedish Government Implementing Virtual Taxes

This spring the Swedish IRS raised the possibility of taxing virtual world and MMOG items and currencies. Plenty of people have already discussed that once uses cash out of the world into real currency, they take on some tax liabilities, but Sweden is taxing property that remains virtual. It looks like they've begun acting on the policy, though in a limited fashion.

"We're not performing any bigger investigations. It's more of a service and a way for us to be clear about the rules.I have got questions from several entrepreneurs who want to start activities in these worlds and about how they should go about it. People want to do what's right," Dag Hardyson at the Swedish IRS told the GP. [English translation available on the Entropia Forum]

The article deals more broadly with some of the ways that Sweden-based MindArk is dealing with virtual property in the real-cash economy of Entropia Universe. For starters, the company is looking at ways to include virtual property in wills.

"There is land in the game of considerable value, which if the player would die, is uncertain who would claim [it]," says project manager Carl Uggla.

MindArk looks at it as a natural step, and the Swedish IRS sees their efforts in the same line.

"It’s about validating this business sector," said Martina Bertilsson. [From what I can tell from the Swedish article, she's also with the IRS.] "A lot of what happens online is still in a legislative gray area and open for pure legal interpretation, but there are now rules implemented regarding income tax for people living in Sweden."

[via Virtually Blind via EntropiaForums]

Comments

[Chaz Longstaff]

This link: Swedish IRS raised the possibility of taxing virtual world and MMOG items and currencies.

is broken.

[Joey Seiler]

Fixed now. Thanks.

[Terry Fletcher]

So, is the tax payable in virtual money?