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In a decisive move to strengthen oversight and fairness within China’s burgeoning digital economy, the State Council unveiled a comprehensive set of tax reporting regulations for internet platform companies. The newly issued rules, encompassing 14 detailed articles, require platform operators to submit quarterly identity and income data of both businesses and individual workers active on their platforms to local tax authorities.
This regulatory initiative aims to streamline tax administration, bolster the protection of taxpayer rights, and create a level playing field for digital market participants. Importantly, the rules clarify that platform workers engaged in public convenience services such as delivery, transport, and housekeeping — who are either exempt or outside the tax obligation scope — will not have their income reported.
Authorities from the Ministry of Justice and the State Taxation Administration emphasized that the reforms do not intend to increase tax burdens for compliant businesses and workers. Small and micro-sized businesses continue to enjoy preferential tax policies, with merchants earning below 100,000 yuan ($13,933) per month qualifying for value-added tax exemptions. Additionally, platform workers with annual incomes under 120,000 yuan, after deductions, remain exempt from personal income tax.
To minimize administrative burdens, internet platforms are exempt from resubmitting tax data already provided through withholding declarations or accessible via government data-sharing systems. Tax agencies are tasked with offering secure, efficient reporting channels, user-friendly data interfaces, and timely policy guidance.
Data privacy remains a priority; platform companies must securely store user tax information while tax authorities are bound by confidentiality and legal safeguards in handling such data.
China’s proactive approach reflects a global trend toward greater transparency and regulatory oversight in digital economies, balancing efficiency with taxpayer protections.
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