Chinese to Pay Tax on Virtual Currencies
November 6th, 2008 Posted in Business by Rajiv Ashrafi
Virtual currencies are pretty popular in China, with many even earning most of their income through online games. The Chinese government is responding to this by taxing those who make profits off these currencies.
Chinese citizens will now have to pony up a 20% personal income tax on said profits, with the Chinese Administration of Taxation noting that it “specifically takes aim at those who buy virtual currency from gamers and surfers and sell it to others at a mark-up.”
This tax will be applicable to individuals and not companies, though. The policy applies to gold farmers as well as web-based virtual currencies such as QQ Coins used in Tencent’s popular IM program.