Taxes · 🇨🇳 China
Crypto and tokenized asset taxes in China
Crypto trading and RWA tokenization are banned on the mainland; there is no specific crypto tax rule, but residents must declare worldwide income, and gains may be 'property transfer income' at 20%.
Also in: zh-Hans
Crypto
Gains
No specific rule; property transfer income at 20% is the commonly cited treatment (not officially confirmed for crypto)
Losses
No specific guidance
Also
Virtual-currency business is illegal on the mainland (PBOC and seven agencies, Yinfa [2026] No. 42, 6 Feb 2026, replacing the 2021 notice). Holding is not itself a crime, but contracts are not protected. A 2008 tax reply on online game currency treated resale gains as property transfer income.
Income and tokenized assets
Staking, lending, yield
No specific guidance on staking, lending or airdrops. Such receipts by tax residents would be worldwide income in principle; category and rate are not set by official rules.
Tokenized stocks, bonds, funds
RWA tokenization inside mainland China is an unlawful financial activity under Notice No. 42 (Feb 2026), and financial institutions may not serve it. No tax guidance on tokenized securities. Offshore income of residents from foreign securities (gains, dividends, interest) is generally taxed at 20% under worldwide-income rules.
Filing
Tax year
Calendar year; annual IIT reconciliation 1 March – 30 June; overseas income to be declared by 30 June
Reporting
Tax residents (domicile or 183+ days) must declare worldwide income in the annual return. Since 2025 tax offices use CRS data to send reminders and request self-checks of 2022–2024 overseas income. China has not been found among CARF adopters.
Tax authority
Watch out
- Using crypto or tokenized products on the mainland is outside legal protection
- Overseas investment gains are being checked via CRS data
- No official rule for crypto gains – treatment is uncertain
Sources
- Charltons – China's position on virtual currencies and RWA (Notice No. 42) · charltonslaw.com
- Digital Policy Alert – Yinfa [2026] No. 42 · digitalpolicyalert.org
- China Briefing – overseas income self-inspection · china-briefing.com
- Caixin – 20% tax on offshore trading profits · caixinglobal.com
- Forvis Mazars – high-income individuals abroad (June 2025) · forvismazars.com
Not confirmed
- Classification of crypto gains as property transfer income: only the 2008 game-currency reply, no crypto ruling
- Offshore reach of Notice No. 42 for services to residents (sources disagree)
- China's CARF status
- Existing summary correct; can add Notice No. 42 (Feb 2026) and CRS enforcement
Researched 2026-11-01 for private individuals resident in China. Information, not tax advice — rules change; check the tax authority before you file.