An Assessment of Metaverse and NFT Taxation

Abstract

In the technology space, the most important topics discussed are related to the emergence of new digital assets such as the metaverse, NFTs, and artificial intelligence. In addition to the digital transformation of various corporate operations and systems and innovative approaches to asset creation, it is also important to address the economic and tax implications associated with these assets. The current uncertainty surrounding this rapidly developing technology is especially concerning considering its potential and momentum. Originally derived from online video games that prioritized user interaction, both the metaverse and NFTs now enable users to generate income and build wealth entirely in this digital environment. The comparison between NFTs and the metaverse serves to highlight the opportunity to develop a new field of decentralized solutions. However, the distinctions and commonalities between these two concepts are not sufficiently defined. A comprehensive understanding is crucial to establishing a solid foundation for NFTs and the metaverse. This study explores the definitions, characteristics, and differences between the metaverse and NFTs, while also providing recommendations regarding their tax implications based on implementations in various countries.