Online platforms submit tax info

More than 7,000 domestic and overseas online platforms have submitted tax-related information to authorities under new national reporting rules that took effect on Oct 1, said the State Taxation Administration on Monday.

Under the State Council's new rules on tax information reporting by internet platform companies, such enterprises are required to provide data on the identity and income of merchants and workers operating on their sites.

More efforts will be made to implement the rules and strengthen coordinated oversight with other departments and investigate illegal activities, the country's tax authority said.

The tax authority added that these efforts are intended to improve regulation of the platform economy and support its high-quality development.

The new reporting rules cover both domestic as well as foreign platforms operating in China's vast online marketplace, including global e-commerce platforms such as Amazon, Shopee as well as Chinese platforms with large overseas footprints.

Shi Zhengwen, director of the center for research in fiscal and tax law at the China University of Political Science and Law, said: "Whether domestic or foreign, all platforms that provide profit-making services to Chinese operators must report tax-related information in accordance with the law. Any attempts to skirt obligations through offshore registration will not work."

The initiative comes as Beijing seeks to improve tax compliance and ensure a level playing field across the online economy, which has grown increasingly complex with the rise of livestreaming sales, gig work and cross-border e-commerce.

The administration also warned against plans that disguise personal income as business income — a tactic used by some gig-economy or influencer platforms to reduce tax burdens.

Some platforms were found to have helped individuals register as self-employed businesses in bulk or set up offshore entities to evade domestic tax obligations, according to the STA.

"These practices — such as splitting income, switching identity, or registering overseas to conceal domestic earnings — seriously disrupt the reporting system," Shi added.