The State Administration recently approved the local taxation bureaus that individual income tax will be levied on the income obtained by individuals through online buying and selling of virtual currencies.
The approval pointed out that the income obtained by individuals through online purchase of players' virtual currencies and reselling them to others at a higher price belongs to taxable income for individual income tax, and should be calculated and paid according to the "income from property transfer" item for individual income tax.
The original value of the property for individuals selling virtual currencies is the price paid and related taxes and fees for acquiring network virtual currencies. For individuals who cannot provide relevant original value vouchers, the competent tax authority will determine their original value of the property.
Beijing Local Taxation Bureau: The income tax rate for selling virtual currencies is fixed at 20%
According to the report (reported by Zhao Peng), relevant responsible persons revealed that the individual income tax rate calculated and paid according to the "income from property transfer" item is fixed at 20%, and Beijing Local Taxation Bureau will also introduce relevant methods for determining the original value of personal sales of virtual currencies.
It is introduced that currently, Beijing Local Taxation Bureau has not yet started to levy individual income tax on the income obtained by individuals through online sales of virtual currencies. However, the bureau realizes that this behavior has become a relatively common phenomenon and should be strengthened in management. In order to better implement the requirements of the "Approval Regarding the Collection of Individual Income Tax on the Income Obtained by Individuals Through Online Buying and Selling of Virtual Currencies" announced this time by the State Administration, Beijing Local Taxation Bureau will also introduce relevant operational methods for determining the original value of personal sales of virtual currencies.
Beijing Times