Sales virtual currency tax rate

1. According to the official reply of the State Administration of Taxation on the issue of indivial income tax on the income of indivials from buying and selling virtual currency through the Internet (GSH [2008] No. 818), the income obtained by indivials from purchasing players' virtual currency through the Internet and selling it to others after price increase belongs to the taxable income of indivial income tax, The indivial income tax shall be calculated and paid according to the item of "income from property transfer". The original value of an indivial's property in selling virtual currency is the price and related taxes paid for his purchase of network virtual currency. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities.

2. According to the official reply of the State Administration of Taxation on the issue of indivial income tax on the income of indivials from buying and selling virtual currency through the Internet (GSH [2008] No. 818), the income obtained by indivials from purchasing players' virtual currency through the Internet and selling it to others after price increase belongs to the taxable income of indivial income tax, The indivial income tax shall be calculated and paid according to the item of "income from property transfer". The original value of an indivial's property in selling virtual currency is the price and related taxes paid for his purchase of network virtual currency. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities.

3. The State Administration of Taxation emphasizes that the original value of an indivial's property in selling virtual currency, the price paid for his purchase of network virtual currency and related taxes. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities

according to the relevant sources of Beijing Local Taxation Bureau, the tax rate of indivial income tax calculated according to the "income from property transfer" project is fixed at 20%, and Beijing Local Taxation Bureau will also introce relevant measures to verify the original value of virtual currency property sold by indivials

about virtual currency:

virtual currency refers to the substitute currency circulating in the network virtual world. In addition to the virtual currencies issued by major online game companies with various names, Tencent Q currency is also widely used

at present, the online transaction in the virtual world has greatly exceeded people's imagination, and has formed a huge online transaction market of proction, supply and marketing. Moreover, a group of professional workers specialized in "coin printing" came into being; There are also special exchange shops for various game currencies.

4. In a recent reply to the Beijing Local Taxation Bureau, the State Administration of Taxation said that the income obtained by indivials from purchasing players' virtual currency through the Internet and selling it to others after price increase belongs to the taxable income of indivial income tax, which should be calculated and paid according to the item of "income from property transfer"
according to the regulations, the income from property transfer is calculated as the amount of taxable income, which is the balance of the income from one-time transfer of property (no matter how many times it is paid, it should be merged into the income from one-time transfer of property) minus the original value of the property and reasonable expenses, and the tax rate of 20% is applied to calculate and pay indivial income tax.

5. The State Administration of Taxation announced on the 28th the "reply on the issue of personal income tax on the income of indivials from buying and selling virtual currencies through the Internet", which means that domestic indivials must pay personal income tax on the income they get from selling virtual currencies to others after they purchase virtual currencies through the Internet

in response to the Beijing Local Taxation Bureau's request for instructions on the issue of indivial income tax on the income derived from the sale of virtual currency through the Internet, the State Administration of Taxation has made the above reply, clearly stipulating that the income derived from the purchase of virtual currency through the Internet and the sale to others after the price increase belongs to the taxable income of indivial income tax, The indivial income tax shall be calculated and paid according to the item of "income from property transfer"

at the same time, the State Administration of Taxation emphasizes that the original value of the property of an indivial selling virtual currency is the price and related taxes paid for his purchase of network virtual currency. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities

according to the relevant sources of Beijing Local Taxation Bureau, the tax rate of indivial income tax calculated according to the project of "income from property transfer" is fixed at 20%. Beijing Local Taxation Bureau will also introce relevant measures to verify the original value of virtual currency property sold by indivials, but there is no timetable for the implementation of the policy at present.

6. Beijing Local Taxation Bureau:
we have received your request for instructions on the issue of personal income tax collection for indivials who obtain income from online sales of virtual currency (jdsge [2008] No. 114). The reply is as follows:
1. The income obtained by an indivial from purchasing a player's virtual currency through the Internet and selling it to others after a price increase belongs to the taxable income of personal income tax, which should be calculated according to & quot; Income from property transfer; Indivial income tax is calculated and paid
2. The original value of an indivial's property selling virtual currency is the price and relevant taxes paid for his purchase of network virtual currency< 3. If an indivial is unable to provide the original value certificate of the property, the original value of the property shall be verified by the competent tax authority<

State Administration of Taxation
September 28, 2008

7. The main points of the official reply of the State Administration of Taxation on Levying Indivial Income Tax on the purchase and sale of virtual currency; Income from property transfer; Indivial income tax is calculated and paid< 2. The original value of a person's property selling virtual currency is the price and relevant taxes paid for his purchase of network virtual currency< (3) if an indivial is unable to provide evidence of the original value of the property, the original value of the property shall be verified by the competent tax authority
small survey

8. [answer] at present, for online games, it should be in accordance with the provisions of the entertainment instry in Article 6 of the notes on business tax items (Trial draft) (GSF [1993] No. 149). The entertainment instry refers to the business of providing places and services for entertainment activities. The scope of collection of this tax item includes: operating entertainment places such as singing hall, dancing hall, karaoke singing and dancing hall, music teahouse, billiards, golf course, bowling alley, amusement park, and the business of entertainment places providing services for customers' entertainment activities. The catering services and other services provided by the above entertainment places for customers' entertainment activities fall within the scope of this tax item. In this regard, Beijing has a clear regulation: Article 2 of the notice of Beijing Local Taxation Bureau on the business tax issues related to online game business (jdshying [2008] No. 21) stipulates that the sales revenue of game consumption cards (currently temporarily divided into "time limit cards" and "game point cards") obtained by units and indivials who complete the operation of online games by building servers supporting the operation of online games, Business tax should be levied according to the tax item of "entertainment instry - other entertainment". Article 3 stipulates that the income from selling game consumption cards on behalf of units and indivials shall be implemented in accordance with the relevant provisions of paragraph 2 of the supplementary notice of Beijing Local Taxation Bureau on the issue of levying business tax on the agency instry (jdshying [2001] No. 507). Therefore, for what you call "online game operating companies selling virtual game equipment and virtual currency to game players", you can refer to the above provisions to levy "entertainment instry - other entertainment" business tax. Because the tax rate of the entertainment instry is now implemented in accordance with the tax rates set by various localities, it is necessary to carry out tax treatment according to the specific local regulations. For example: according to the regulations of Beijing Municipality, the notice of Beijing Municipal Finance Bureau and Beijing Local Taxation Bureau on adjusting the business tax rate of entertainment instry in Beijing (JCS [2000] No. 276), the business tax rate of entertainment instry in Beijing is adjusted as follows: 1. The business tax rate of entertainment items such as game machines and Game Internet bars is 20%; 2. The business tax rate of entertainment items such as singing halls, dance halls, karaoke halls and bars is 15%; ① 3. The business tax rate of music tea house, golf, billiards, bowling, shooting, water skiing, water slide, collision boat, sliding rope, landing, slide, four-wheel motorcycle cross-country, roller skating, horse racing, hunting, comprehensive amusement park (Park) and other items is 10%; ② 4. The business tax rate of playground or other entertainment items for children is 5%. Construction fee for cultural undertakings: Article 2 of the notice of the Ministry of Finance and the State Administration of Taxation on printing and distributing the Interim Measures for the collection and administration of construction fee for cultural undertakings (Cai Shui Zi [1997] No. 95) stipulates that units and indivials within the territory of the people's Republic of China who pay business tax for entertainment and advertising instries in accordance with the Interim Regulations of the people's Republic of China on business tax, The payers of cultural undertakings construction fees (hereinafter referred to as payers) shall pay cultural undertakings construction fees in accordance with the provisions of these measures. Article 4 stipulates that the construction fee of cultural undertakings shall be calculated on the basis of the turnover of the entertainment and advertising business tax payable by the payer and the prescribed rate. Calculation formula: payable amount = turnover of entertainment and advertising business tax × Therefore, the taxpayers who pay the entertainment business tax should also pay the cultural construction fee.