Research On Personal Income Tax And Collection And Management Of Bitcoin Transactions

Since 2013,bitcoin has begun to develop on a large scale,and the trading market has reached the trillion level.Although China has strengthened the regulation of bitcoin,the notice has not prohibited non-commercial mining and barter bitcoin transactions,and there are still a large number of bitcoin traders in China.In addition,on the one hand,because of the high return of bitcoin mining and trading,Chinese resident taxpayers engage in commercial mining and bitcoin trading abroad in order to escape China’s control,resulting in overseas income;On the other hand,based on the characteristics of bitcoin point-to-point transactions,non resident taxpayers can conduct bitcoin transactions with Chinese resident taxpayers abroad,resulting in the Chinese source income of non resident taxpayers.Therefore,it is necessary to establish the personal income tax and collection and management of bitcoin related transactions.When discussing the personal income tax of bitcoin,the first problem is to define the attribute of bitcoin in the tax law.Different attributes of bitcoin have different consequences in the personal income tax law.Secondly,the unique high volatility of bitcoin’s market fair price makes it difficult to recognize the amount of income,how to solve taxability problem of bitcoin caused by it.Thirdly,as a new type of income,bitcoin mining and trading income is not clear what kind of income it should belong to in China’s individual income tax law and how to calculate the taxable income.Finally,the characteristics of decentralization,concealment and transaction globalization of bitcoin have brought unprecedented challenges to the current tax collection and management system.Therefore,this paper first analyzes that bitcoin has certain value and can be owned and controlled by specific subjects,so it has certain property attributes.Secondly,by proposing the measurement method in the sense of bitcoin fair value tax law,the market fair price of bitcoin is determined according to the average value of the transaction price in the four years before the date when the taxpayer obtains or trades bitcoin,so as to fairly and reasonably determine the income of the taxpayer.Thirdly,non-commercial mining income is accidental,random and non consideration,so it is adviesd to defineas accidental income.Based on the property attribute of bitcoin,the income from non-commercial bitcoin transfer and re transfer should be defined as the income from property transfer.Commercial mining and bitcoin transfer and re transfer activities need to invest a lot of capital for continuous operation,which has the nature of operation.Its income should be defined as operating income.On this basis,further clarify the income amount and deductible amount under different income.Finally,according to the difficulties existing in the collection and management of bitcoin personal income tax,it is considered that the collection and management of bitcoin personal income tax needs to,strengthen the self-monitoring capacity-building of the tax department,multi sector linkage mechanism of bitcoin transaction supervisionand establish an international exchange mechanism of bitcoin tax related information.