Crone
Prowler
- Joined
- May 12, 2006
- Posts
- 1,267
- Location
- Netherlands
- Society
- CRT
- Avatar Name
- Joshua Crone Craftson
How do you people deal with taxes of your in game profits or wins? Ofcourse Crone is most interested in Dutch and EU stories, he does consider other countries to be useful as well. As tax rules are more or less the same in any country.
Crone would see any profits as income from a hobby which in itself is not taxable (in the Netherlands) as long as it is within reason and not your major income. this leaves a large grey gap since "major income" probably depends on your other incomes.
It could be income from work, incoming money always comes from the same bank account from MindArk, the relationship between the player and MindArk could be considered defined in the EULA. MindArk and the player are both able to terminate the relationship by a ban or request. There is a written agreement each time you click on accept. The work MindArk offers is defined within the software itself and a 0 hour contract is totally normal in many countries. This would make MindArk responsible for any wage taxes, therefore not the player's problem.
This leaves profit as in being self employed. Crone also denies this since that would mean invoices, which would mean names and VAT numbers from customers and himself. No way a trader will get those from his suppliers.
Income from other activities could be reasonable as well. Be it, this is essentially a game. This means hobby, which means no taxes.
Then there is the occassional very lucky player. He is in the top of the ATH list. This is very tricky. It could be considered what we dutch call kansspelbelasting (gamble tax). This will be hard to beat, except that MindArk will be at your side defending this is not a casino like game.
Interesting. Any other thoughts?
Crone would see any profits as income from a hobby which in itself is not taxable (in the Netherlands) as long as it is within reason and not your major income. this leaves a large grey gap since "major income" probably depends on your other incomes.
It could be income from work, incoming money always comes from the same bank account from MindArk, the relationship between the player and MindArk could be considered defined in the EULA. MindArk and the player are both able to terminate the relationship by a ban or request. There is a written agreement each time you click on accept. The work MindArk offers is defined within the software itself and a 0 hour contract is totally normal in many countries. This would make MindArk responsible for any wage taxes, therefore not the player's problem.
This leaves profit as in being self employed. Crone also denies this since that would mean invoices, which would mean names and VAT numbers from customers and himself. No way a trader will get those from his suppliers.
Income from other activities could be reasonable as well. Be it, this is essentially a game. This means hobby, which means no taxes.
Then there is the occassional very lucky player. He is in the top of the ATH list. This is very tricky. It could be considered what we dutch call kansspelbelasting (gamble tax). This will be hard to beat, except that MindArk will be at your side defending this is not a casino like game.
Interesting. Any other thoughts?