A year after they ‘banned’ - with not much effects, looking at the amount of WoW goldfarming spam I receive daily - trade in virtual currencies, China’s government has decided they should get their part of the cash (estimated to be over €1.15bn) earned by exactly that trading.

The widening trade in the virtual money used within games – and their burgeoning use for other transactions – last year prompted China’s ruling Communist party and the central bank to ban trading in virtual currencies and their use for purchases of “material products”.

However, in what amounts to tacit recognition that last year’s restrictions have had little impact, the State Administration of Taxation has announced that income from the sale of virtual currency with “increased value” is taxable at the same 20 per cent rate applied to real estate and other transactions.

Yet, Beijing tax officials declined to explain how they would implement the vaguely worded ruling.

More at FT.com.

Tags: chinese, currency, tax, virtual worlds

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