Cross-border Tax Talks

The Metaverse and Tax: A non fungible discussion

Doug McHoney (PwC's International Tax Services Global Leader) welcomes Rebecca Lee, International Tax Services Principal in the Washington National Tax Practice for her sixth visit. Doug and Rebecca dispel myths associated with cryptocurrency and the metaverse. They break down definitions of some of the trickiest metaverse jargon, the tax implications of metaverse transactions, and where we are heading in the near future.

Timestamps:

• 2:00 - How did Rebecca come to specialize in the metaverse?
• 8:00 - How should people who are unfamiliar with the Metaverse think about the following terms:
  • 8:15 - Web 3.0
  • 9:45 - Blockchain
  • 12:20 - cryptocurrency
  • 12:30 - fiat currency
  • 13:50 - non fungible tokens (NFTs)
  • 19:40 - interoperability
  • 21:00 - the metaverse
• 23:00 - What are the tax issues associated with some of the transactions you might see in the metaverse?
  • 23:05 - Digital purchases
  • 23:55 - Digital purchases with physical components
  • 31:20 - Is the creation of an NFT a service? If so, do we have any idea how that will be taxed?
  • 34:55 - Traditional services in the metaverse
  • 37:20 - Pillar Two in the metaverse
• 43:00 - What comes next?

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