China Tax Agency Clarifies Tax Reporting Requirements for Internet Platform Enterprises

The Chinese State Administration of Taxation Sept. 25 clarified the tax reporting requirements for digital platform operators, effective Oct. 1. The clarification includes that: 1) registration is mandatory for operators with annual online transactions exceeding 100,000 Chinese yuan (US$14,121) in total revenues across multiple stores; 2) platform operators must remind users to register and display business licenses prominently; 3) operators must truthfully declare all income, avoiding illegal income splitting or false reporting; 4) fake platforms and businesses will be targeted to stop tax evasion and unfair competition; 5) the tax reporting regime applies to resident and nonresident platforms, including the ...