The Loudi Taxation Bureau of the State Tax Administration authored the article.
The official tax newspaper of China, China Tax News, has wanted the government of China to take action on cryptocurrency taxes. Although there is a statewide prohibition on digital assets, the newspaper highlighted that the government should impose taxes on the cryptocurrency industry. A Chinese journalist Colin Wu hinted at the news. He stated that if the Chinese government imposes taxes on cryptocurrencies although there is a crackdown, cryptocurrencies would become legal indirectly.
Wu stated in a tweet: “China’s tax official newspaper called for a tax on crypto and said that the exchange’s taxation scale was very large. But, since the PBOC defines all of the crypto activities as illegal activities, taxation seems to indirectly recognize their legalization,” The article that is published in China Tax News touches on the cryptocurrency industry and its trading amount.
Tracking of users who hold a large amount of virtual currency
In the article, it is put in context that since the whole tax volume of the cryptocurrency industry cannot be avoided, taxes for other parallel industries should be clarified. China Tax News said: “At the same time, China should improve the relevant property declaration and registration mechanism and carry out real-name registration and dynamic tracking of users who hold a large amount of virtual currency. Furthermore, in judicial areas such as fines and confiscations, reorganization, mergers and acquisitions, bankruptcy liquidation, etc., it is necessary to clarify the handling of virtual currencies to avoid the loss of national taxes,”
The author is not known
The exact name of who issued the opinion is not specified. However, it seems to the article is written by the Loudi Taxation Bureau of the State Tax Administration.
Last month, the People’s Bank of China announced that companies that are offering token trending, issuance, derivatives, and order matching for digital assets are forbidden. The PBoC said that it seeks to protect the Chinese population from the hype and remove speculation of the crypto market. It highlighted that overseas staff of cryptocurrencies operating in the country, those people who work for customer support are also included, will be investigated.