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).