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China Cracks Down on Influencers and Merchants with New Tax Reporting Rules


Photo by FMT

Summary


  • China’s tax agency is introducing new regulations requiring e-commerce and social media platforms to report the income of merchants and influencers.

  • The goal is to crack down on tax evasion amid declining national tax revenues, which fell by 3.9% through November 2024.

  • The regulation will add new burdens on online sellers, including mandatory quarterly reporting of earnings and other tax-related information.


 

China’s tax authority has unveiled new regulations aimed at curbing tax evasion by online influencers and merchants, amid a national revenue shortfall. Under the proposed rule, which is open for public feedback until January 19, 2025, e-commerce and social media platform operators will be required to report key financial information of revenue-generating users. This includes not only income but also advertising earnings, bank account numbers, and total revenue, with quarterly updates to the State Taxation Administration (STA).


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