It is very interesting to see how westerns think about China. Something is different here, as many people may think, unlike other countries with an adequate legal system, the one here is anything but enough to regulate its people.
so every time a pact or something is issued, don’t take it seriously, especially when it draws fierce opposition from the population, on such an occasion as which it will never be applied in practise.
Trust me, I seeing enough cases concerning.

Considering that frequent flyer points are a virtual currency, the discussion about taxation has been going on for a while and I suspect several countries do tax frequent flyer rewards.

Can’t they just tax the proceeds when the conversion to real currency occurs?

They can; and that’s what I believe happens in Denmark where you have a tax liability upon purchasing a ticket paid for with frequent flyer points.

Hi Yin, thanks for the on-the-ground perspective from China!

In terms of frequent flyer points; it seems odd to me that these would be taxed, since the underlying purchases you make to earn those points are taxed, and you are making those purchases with after-tax employment income. Not saying governments can’t do it – they certainly can – but it just doesn’t seem quite fair. Lars, sounds like what you’re saying though, is that in Denmark when you buy a ticket with points, you pay the ticket price plus sales tax. That would be different than treating points as income, subject to income tax right off the top.

In terms of China, it seems like what they are aiming for in an income tax on virtual currency.