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China solicits opinions on tax-related information rules concerning internet platform companies

Xinhua | Updated: 2024-12-20 18:16
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BEIJING -- Chinese authorities on Friday began soliciting public opinions on rules to regulate internet platform companies' submission of tax-related information about businesses and employees on their platforms.

The rules aim to promote the healthy and orderly development of the country's platform economy, according to the State Taxation Administration and the State Administration for Market Regulation, which jointly drafted the rules.

The rules are drafted in accordance with the provisions of the existing laws and regulations, such as the e-commerce law, aiming to establish a robust and regularized tax information reporting system.

They seek to effectively uphold the rule of law and a fair tax order, without causing substantial impact on the majority of industries and related individuals.

The rules provide clear stipulations on who should report tax-related information, what should be reported, and how it should be reported.

They specifically emphasize that income information of employees in convenience services such as delivery, transportation and household services may be exempted from reporting.

The tax authorities will keep the obtained tax-related information confidential in accordance with the law and establish a tax information data security management system in compliance with relevant regulations to ensure data security, according to the rules.

Since 2022, tax authorities have piloted quarterly reporting of tax-related information by internet platform enterprises engaged in activities such as online sales and live-streaming in five provincial-level regions, including Tianjin and Guangdong, according to the State Taxation Administration.

Experience from the pilot regions shows that as long as the internet platform enterprises fulfill their procedural obligation to report tax-related information in accordance with the law, their own business operations and tax burdens will remain unaffected.

Similarly, the tax burdens of compliant businesses and employees on the platforms will not change, nor will the tax burdens of the vast majority of small and micro enterprises and merchants.

However, a small number of businesses involved in false reporting, tax evasion or other illegal activities, particularly high-income individuals engaged in non-compliant operations, will see their unlawful practices effectively curbed, and their tax burden will return to a normal level.

The draft will be open for public comments until Jan 19 next year.

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