Word in from the Wall Street Journal today reveals that are set to confirm plans to tax profits from virtual on the internet. 20% will be levied by the taxman of the People's Republic.

Gold farmers and related traders seem to be a particular target, China hoping to take a cut from those buying virtual goods from gamers and seling them on at a profit.

This tax could be a deterrent, then, China having in the past condemned the market in virtual goods, which is in fact technically illegal.

"The fast growth already has raised fears among China's policymakers, who last year restricted the conversion of virtual currency into yuan. Among other reasons cited... They feared the practice could lead to inflation as well as money-laundering," reads the Wall Street Journal report.

By Luke Guttridge