Taxation and Jili Games: A Complex Relationship
Taxation policies in various regions have a significant impact on the gaming industry, including Jili Games. The relationship between taxation and gaming is complex, with taxes being used as a system-instituted cost, a themed part of a resource-management system, or even a money-draining system with a negative connotation.In the virtual world, in-game taxes are used to fight virtual inflation and are not directly connected to real-life taxation. However, they can teach players the concept of taxation and tax systems. The misinterpretation of the term tax has been used by certain videogame companies for plotting and promotion, which could have led to confusion between virtual and real-life tax concepts and benefits. To avoid such misinterpretations, the term tax should be used correctly, i.e. reflecting its fiscal and wealth redistribution nature2.In the real world, the taxation of MMORPG profits is a complex issue. In the United States, if you are earning it (payment for work, mining, staking, airdrop, or interest) it is reportable income. Or if you farm gold and sell it for real money, it is income. When you outright purchase / trade / or dispose of digital currencies, it is treated as property (Capital Gain or Loss)3.In India, the government has imposed a substantial tax on online gaming companies, including app makers. The decision, announced during the 50th meeting held in New Delhi, entails treating online gaming on par with gambling, including activities like horse racing and casinos. Under the new levy, online games will be subject to a tax of 28% of their total value. This move signifies a notable shift in how the Indian government views and regulates the online gaming industry, aligning it with the taxation principles applied to gambling activities4.In conclusion, taxation policies in various regions have a significant impact on Jili Games and the gaming industry as a whole. The relationship between taxation and gaming is complex, with taxes being used as a system-instituted cost, a themed part of a resource-management system, or even a money-draining system with a negative connotation. In the virtual world, in-game taxes are used to fight virtual inflation and are not directly connected to real-life taxation. However, they can teach players the concept of taxation and tax systems. The misinterpretation of the term tax has been used by certain videogame companies for plotting and promotion, which could have led to confusion between virtual and real-life tax concepts and benefits. To avoid such misinterpretations, the term tax should be used correctly, i.e. reflecting its fiscal and wealth redistribution nature. In the real world, the taxation of MMORPG profits is a complex issue, and in India, the government has imposed a substantial tax on online gaming companies, including app makers, treating online gaming on par with gambling.
