Research On Legal System Of Virtual Currency Transaction Taxation

In the 21st century, rapid development of internet, science and technology has promoted enormous network economic progress. Network economy and virtual network led to virtual money and has made it a new form of payment for network service. As a result of huge achievements that information technology and Internet technology has made, virtual money has its very own attributes and characteristics. The issuance, circulation and trading of virtual networks on one hand has promoted the economic development, and has had great impact on the relevant legal system on the other hand. Trading of virtual currency makes the network a more open market, forming a new type of virtual network business. However, faced with an increasingly sharp increase in the virtual currency trading volume, network transactions tax has found itself in an urgent need of regulation. Virtual currency transaction is a through change from real economic transactions, as a result of its mobile and invisible characteristics, the current tax system can not be applied properly, which has brought chances of tax avoidance for online businessmen and 3D game players, and challenged traditional legal system of taxation as well. This thesis try to eliminate avoidance of virtual currency transaction taxes, ease the tough situation of virtual network regulation, so as to promote the healthy and orderly development of the network economy. Therefore, this thesis is based on the current situation of China's virtual currency transaction taxation, concerning lack of supervision of network virtual currency taxation from traditional legal system. By analysis of domestic and foreign policies, this thesis will explore some possible solutions in hopes of improving legal system of virtual currency transaction taxation.At first, This paper describes some of general theory of virtual currency transactions in our country. This chapter defines the concept of the virtual currencies, as well as qualities of property, which has set basement for further discussion about the legal issues of virtual currency transaction taxation. Then, the paper deals with the opportunities and challenges that virtual currency trading has brought to the traditional tax, analyzing the substantive rules of tax law and procedural rules. Moreover, the paper describes disputes about the virtual currency transactions taxation and the current policies adopted by domestic and international sectors for taxation of virtual currency transactions. And then the paper covers analysis of necessity and feasibility of China's virtual currency transactions taxation, basing on theory of tax revenue and tax laws. The last part of the article is based on the above theoretical, and conducts strategies for building and improving the taxation laws of China's virtual currency trading.