China Imposes Tax on Sales of Virtual Currency and Items

Um... I'm having trouble wrapping my head around this, but according to this article on Massively.com, China's government just passed a law imposing a 20% tax on profits from selling virtual currency and/or items. Here's a peek:

"Questions remain about what will and will not be taxed in the virtual space, but it's clear that individuals who gain virtual income are expected to declare their profits and pay taxes on this, and do so within seven days of having earned the profit, according to Shanghai Daily.Taxpayers who can provide proof of the value of this property or the value of the transaction are taxed at 20 percent on their profits, while those who cannot provide sufficient verification are taxed at three percent of the total transaction value. But how many people are affected by this new system?"

I don't know, but I'll bet they're all Chinese gold farmers.