Online platforms file initial tax info

More than 4,100 domestic and overseas online platforms, including major players such as Pinduoduo, Ele.me, Didi, and international cross-border marketplaces have submitted their first round of detailed tax-related information under a new reporting regulation effective this month, China's top tax authority told China Daily on Thursday.

The State Taxation Administration said the reporting process, which began on Oct 1 under new government regulations, requires internet platforms to provide details of operators and workers active on their sites, including verified identity and income information.

Out of the 6,654 platforms that had reported their basic corporate data as of Wednesday, more than 4,100 platforms submitted detailed tax-related information — covering over 60 percent of those required to report, the STA told China Daily.

The new system covers both domestic and foreign platforms operating in China's vast online marketplace, which includes 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 of 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 STA emphasized that platforms have until Oct 31 to complete their first filings, warning that those who miss the deadline or submit inaccurate data could "face penalties".

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 schemes 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.

chengyu@chinadaily.com.cn