China to collect taxon virtual currency deals

Rosemary

The State Administration of Taxation&nbsp; notified&nbsp; local&nbsp; taxation&nbsp; au<br/>&nbsp;&nbsp;&nbsp; thorities&nbsp; to&nbsp; collect&nbsp; 20&nbsp; percent individual&nbsp; income&nbsp; tax&nbsp; on&nbsp; income&nbsp; from selling&nbsp; virtual&nbsp; currency&nbsp; by&nbsp; internet.&nbsp; It&nbsp; is the&nbsp; first&nbsp; time&nbsp; for China&nbsp; to&nbsp; introduce&nbsp; taxation policies on virtual currency deals.&nbsp;&nbsp; According&nbsp; to&nbsp; the SAT,&nbsp; individuals gain income&nbsp; from&nbsp; purchasing&nbsp; virtual&nbsp; currency and&nbsp; selling&nbsp; later&nbsp; should pay&nbsp; individual&nbsp; income&nbsp; tax&nbsp; according&nbsp; to&nbsp; the&nbsp; article “income of conveyance of property”.&nbsp;&nbsp;&nbsp; Those&nbsp; virtual&nbsp; currency&nbsp; traders will&nbsp; be impacted most&nbsp; by&nbsp; the&nbsp; new&nbsp; policy. According&nbsp; to&nbsp; introduction,&nbsp; virtual&nbsp; currency, worth&nbsp; about&nbsp; several billion yuan,&nbsp; is circulating&nbsp; on&nbsp; the&nbsp; internet&nbsp; like&nbsp; other&nbsp; virtual products. The&nbsp; annual growth&nbsp; rate of virtual currency also hits 15&nbsp; to 20 percent.