Just caught an interesting little interview with Guni Greenstein (RL name: Guni Graef), husband and business partner of Second Life’s Anshe Chung (RL name: Ailin Graef), over on Reuters/Second Life (Link). The part that most caught my attention was this:

No, we are not worried about tax implications since we fully report our revenues to the local tax authorities.
…
Yes, our business is based in China. We went to a developing area and invest heavily in training. We are also lucky to find an administration that is more experienced with virtual-world economies than in Germany.

I’m curious what the difference is in taxes between China and Germany. I’m also wondering if there are other people starting to consider officially moving their virtual businesses offshore. Good time of year to be visiting some islands.