Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
July 24, 2019
arrowPress Releases







If you enjoy reading this site, you might also want to check out these UBM Tech sites:


China To Add 20% Tax On Virtual Goods Profits

China To Add 20% Tax On Virtual Goods Profits

November 4, 2008 | By Eric Caoili

November 4, 2008 | By Eric Caoili
Comments
    2 comments
More: Console/PC



China's State Administration of Taxation announced that it will impose a 20 percent personal income tax on profit from virtual money.

The tax specifically targets traders and operations that buy virtual currency from others with the intention to sell it at a mark-up, such as "gold farmers" and account sellers in online games. The tax will also affect resellers in the region who trade in virtual currencies for instant-messaging services and web portals.

According to a report from the Wall Street journal, a poll by Chinese online portal Sina.com indicates that over 70 percent out of some 3,000 people voted against the new tax, with many worried about how the sum of property will be evaluated.

Blogger Ruan Zhanjiang wrote that, ďMany game players are classmates or friends in real life, thus most of them wonít have credentials when trading virtual money," says blogger Ruan Zhanjian. "Itís difficult to prove the original value of virtual currency, though."

Taxation officials have reportedly been granted the right to judge the value of a particular virtual currency if an individual cannot provide proof of its original price.

Some, however, believe that the new tax will protect their online property rights and help guard them from identity theft, which has been growing alongside the virtual currency trading market.

The WSJ claims that a research firm's study shows China's virtual currency market growing at a yearly rate of 15 percent to 20 percent, with several billion yuan worth of virtual money traded in the market.

This rapid growth has worried China's policymakers, who fear that it could lead to inflation or money-laundering, resulting in a restriction enacted last year preventing the conversion of virtual currency to yuan.


Related Jobs

Sony PlayStation
Sony PlayStation — San Mateo, California, United States
[07.23.19]

Head of Global Portfolio & Acquisitions
Cold Iron Studios
Cold Iron Studios — San Jose, California, United States
[07.23.19]

Sr. Character Artist
Cold Iron Studios
Cold Iron Studios — San Jose, California, United States
[07.23.19]

Principal Character Artist
Cold Iron Studios
Cold Iron Studios — San Jose, California, United States
[07.23.19]

Senior Content Designer









Loading Comments

loader image