I'm a Dutch (from the Netherlands) player of a game called Entropia Universe.
Entropia Universe is a game owned by MindArk. MindArk is a company located in Sweden.
Entropia Universe is a game that uses a Real Cash Economy. You can deposit US dollars, and you will get PED (Project Entropia Dollar) in return. The exchange rate is fixed at $1 = 10 PED.
It's also possible to make withdrawals. Fees are 100 PED or 1%, whichever is higher, plus any transaction fees your bank will apply. Minimum withdrawal amount is 1000 PED.
I can take this PED and use it to buy an in-game weapon and in-game ammunition. I can then use these in-game items to kill in-game monsters. I may receive in-game items by killing these in-game monsters. If I sell these in-game items to an in-game shopkeeper or other players, I can get PED back. The game is designed to not let your profit in this way (giving about 90% returns for killing monsters). All the in-game items are owned by MindArk, or so the EULA says. Only the PED on my PED card is my property. I suppose this means that if MindArk goes bankrupt, I'm not entitled to claim the value of my items, only the value of the PED on my PED card. I suppose this also means that when I trade items with players, nothing is actually changing owners, and thus no taxes can be applied.
However, I can run services in the game. I can trade items with other players. Like this, I can earn PED.
My current situation is as such that I haven't made a single deposit yet. I've earned about 400 PED (of which 200 PED as PED, 200 more in items that I could sell to other players).
Situation #1: I keep playing, and eventually earn 1000 PED. I withdraw this. Will I get taxed? If so, by how much?
Situation #2: I deposit $5000, play the game, lose some money and withdraw PED equal to $4000. Will I get taxed? If so, by how much?
Situation #3: I deposit $5000 and use this to buy in-game items. I later sell these items for massive profits (200%+, this can happen over the course of 2 years for sure). I withdraw $10000. Will I get taxed? If so, by how much?
Basically: Will I get taxed on withdrawals from Real Cash Economy games? And do the taxes apply to the full withdrawal, or only on the profits? Or only on the profits above a certain amount?