China To Begin Taxing Profits From Virtual Currencies

The Wall Street Journal reports that the Chinese government will collect a 20% personal income tax on any profits obtained through the redistribution of virtual currency. The legislation is intended to curtail speculation in virtual markets, which can be quite profitable. Quoting: "The announcement, which was distributed to local tax bureaus, specifically takes aim at those who buy virtual currency from gamers and surfers and sell it to others at a mark-up. Taxation officials are granted the right to determine the original price of online virtual currency if the individual fails to provide proof of an original price, it says. The policy would cover China's legions of online gamers, who can use online virtual currency to buy better equipment and new powers for their online warriors. But it also affects millions of others who use virtual currencies on instant-messaging services and Web portals."

Comments

Yay

[Jbcarpen]

So, will this mean fewer gold spammers? I suppose we shall see.

Re:Yay

[hesaigo999ca]

Hey I enjoy being able to finish a game faster then anyone else because I bought a trillion gold online. I spend lees on trying to get items that allow me to finish the game just the same in smaller amount of game play. I am sorry I am a WoW fanatic, but think blizzard is too greedy, please running from 1 end of the map to the other on each map...until u hit lvl40 then you get a horse, but then the maps get bigger etc... I am tired of running .....virtually

Virtual currency should be taxed online.

[Thanshin]

I wonder what unique items would drop a chinese tax collector.

fair

[trb]

I think this would be fair if they took the tax revenue and plowed it back into their virtual infrastructure - paving virtual roads, building virtual bridges, paying virtual police and firefighters, and so forth.