What kind of tax liabilities arise from playing or developing digital games?

In North Carolina, tax liabilities related to playing or developing digital games can be found in the North Carolina General Statutes. According to North Carolina’s statutes, playing or developing digital games are subject to the same taxes as any business transaction. This includes sales tax, which is imposed on all items sold, as well as certain services, like digital games. When developing digital games, developers are also required to pay income taxes on any income earned from the game, as determined by the North Carolina Department of Revenue. Furthermore, North Carolina’s statutes require that employers are required to withhold income taxes from any wages paid to employees who are employed in the development and/or playing of digital games. Employers must also withhold any Social Security and Medicare taxes due on wages paid to employees. Lastly, there may be other taxes or fees imposed upon playing or developing digital games, depending on the type of game. For example, if a game is classified as a fantasy sport, the North Carolina Department of Revenue may require the payment of certain taxes or fees. It is important to look into all applicable taxes or fees before playing or developing games in North Carolina.

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