Metaverse taxation: integrating virtual world into current tax policies
With the metaverse booming to 400 million users, the challenge arises: how do we tax this burgeoning virtual world? Metaverse is a virtual world where millions of people spend their time nowadays. To give you an idea of its popularity, there are currently about 400 million active users worldwide. Back in 2021, the metaverse was valued at about $58.5 billion. Fast forward a few years, experts are saying it could skyrocket to a mind-blowing $1.5 trillion by 2030. This isn’t just a place for fun and games. It’s shaping up to be a serious contender in the global economy. Now, with all this growth, a big question is popping up: How will we include this virtual economy in our existing tax systems? It’s like when online shopping became a thing, and everyone was scratching their heads about how to handle taxes. A Harvard scholar Young Ran (Christine) Kim, who is part of the team at the Benjamin N. Cardozo School of Law, recently shared her insights in a research paper, op...