Last June 26, 2007, the South Korean government office called the Korean National Tax Service (which equivalent to the US IRS or the Philippine BIR) has announced that they are imposing a Value Added Tax (VAT) to RMT (Real Money Trading) in online games.

Often called “PHP Trading” here locally, the new rule is summarized as below:

“Sellers who do between 6 and 12 million won/half year in business (USD 13,000 or PHP 637,000) will have VAT auto applied by transaction’s middle-man. Sellers who do more than 12 million won/half year in business will need a business license and will pay the tax by themselves”

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