(Yicai) Jan. 8 -- The Shanghai bureau of China’s State Administration of Taxation has said individuals must pay tax on any income from the sale of cryptocurrencies made via the internet.

According to rules brought in since September 2008, any income arising from an individual’s sale of digital currencies online is subject to personal income tax, the bureau said in a document yesterday, adding that it constitutes income from the transfer of property.

Digital red envelopes fall under accidental income in certain circumstances, it said. Red envelopes, or hongbao in Chinese, are cash gifts typically received on important occasions, including national holidays and major life events such as weddings and birthdays.

Implemented in 2019, China’s personal income tax law imposes progressive tax rates ranging from 3 percent to 45 percent on various sources of income such as wages, labor remuneration, royalties, and business income.

Editor: Martin Kadiev