China’s New Tax Rules for Tech Platforms Are Here: Here’s What You Need to Know

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China just rolled out new tax regulations for its massive internet platform economy, and it’s a game-changer for anyone operating in the space.

On June 23, 2025, Premier Li Qiang (Li Qiang 李强) signed a State Council Order officially releasing the “Regulations on Internet Platform Enterprise Tax Information Reporting.”

These new rules are effective immediately.

So, what’s the big deal?

The government’s stated goal is to standardize how tech platforms report tax info, boost administrative efficiency, and create a fairer tax environment.

Essentially, they’re looking to level the playing field and bring more transparency to the booming platform and gig economies.

Let’s break down what founders, investors, and operators need to understand.

The Core Mandate: What Platforms *Must* Report

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This is the heart of the new regulations.

Internet platform companies are now required to report key information about the businesses and individuals making money on their sites.

Here’s the breakdown:

• What to Report: Both identity information (who they are) and income data (how much they earned).
• When to Report: Quarterly. The report for the previous quarter is due within the first month of the new quarter.

This regular, structured reporting is designed to give tax authorities a much clearer picture of the economic activity happening on platforms like Alibaba, Pinduoduo, Meituan, and countless others.

Who Gets a Pass? Key Reporting Exemptions

Beijing isn’t taking a one-size-fits-all approach. The regulations include some important exemptions to avoid crushing the gig economy.

Platforms do not have to report income information for:

• Certain Gig Workers: Practitioners involved in “convenient labor services” like delivery, transportation, and domestic help are exempt, specifically if they already qualify for tax incentives or are legally exempt from taxation. This is a critical carve-out for super-apps that rely on millions of gig workers.
• Pre-Regulation Activity: All tax-related info for platform operators and individuals from before these regulations came into effect is also exempt. No retroactive reporting is required.

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• No Duplicate Data: Platforms are not required to report information already submitted through other compulsory processes (e.g., withholding declarations).
• Leveraging Government Data: Tax authorities are encouraged to obtain data from other government sources to avoid redundant requests to platforms.
• Support from Authorities: Tax authorities must provide secure reporting channels, user-friendly API interfaces, and clear policy guidance.

Cutting the Red Tape: How the Rules Aim to Be Efficient

The government seems aware of the potential for bureaucratic overload and has built in measures to streamline the process.

Platforms can breathe a little easier knowing:

• No Duplicate Data: If a platform has already submitted tax information through other required processes (like withholding declarations), they don’t need to report it again.
• Leveraging Government Data: Authorities are encouraged to share information between departments. If tax authorities can get the data from another government source, they can’t ask the platform to report it.
• Support from Authorities: Tax authorities are mandated to provide secure reporting channels, user-friendly API interfaces, and clear policy guidance and support.

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Data Security and Confidentiality: A Two-Way Street

With all this data flying around, security is a top concern.

The regulations place responsibilities on both sides:

• Platform Responsibility: Internet platforms must securely store all the tax-related information they collect on their operators and users.
• Government Responsibility: Tax authorities must keep the information they receive confidential, build robust security management systems, and ensure total data security.

The Full Breakdown: A Founder’s TL;DR of the 14 Articles

While the full legal text is dense, the key takeaways for anyone in the tech scene are pretty clear. Here’s what matters most.

Who’s on the Hook? (The Official Definition of a ‘Platform’)

The rules apply to “Internet platform enterprises,” which is defined broadly.

This includes:

• E-commerce platform operators as defined by China’s E-commerce Law.
• Any other entity that provides for-profit services like online marketplaces, transaction matching, or information publishing.

The term “practitioners” refers to any individual making money in their personal capacity through these platforms.

The Clock is Ticking: Registration & Reporting Deadlines

Platforms must get their house in order, fast.

• Initial Registration: Within 30 days of the rules taking effect (or 30 days from starting a new platform business), companies must report basic info like domain names, business type, and their Unified Social Credit Code to the tax authorities.
• Quarterly Reporting: As mentioned, identity and income data for the previous quarter must be submitted within the following month.

Who’s to Blame? Verification & Liability

This is a crucial point for platform operators.

Platforms are responsible for verifying the tax info they collect and ensuring it’s truthful, accurate, and complete.

However, there’s a safe harbor clause: If a platform has done its verification duty and the information is wrong because of the user or seller, the platform won’t be held liable.

When Audits Happen: What Tax Authorities Can Demand

If tax authorities suspect illegal activity or identify a risk, they have the power to demand more information.

They can ask platforms for detailed records on specific operators, including:

• Contracts
• Orders
• Transaction details
• Financial accounts
• Logistics information

The Stick: Penalties for Non-Compliance

Failure to comply comes with significant penalties.

If a platform fails to follow the rules, tax authorities will first issue a warning and a deadline to fix the issue.

If they still don’t comply, the fines kick in:

• Minor Offenses: A fine between ¥20,000 RMB ($2,760 USD) and ¥100,000 RMB ($13,800 USD).
• Serious Offenses: An order to suspend business for rectification, plus a fine between ¥100,000 RMB ($13,800 USD) and ¥500,000 RMB ($69,000 USD).

Violations include failing to report on time, concealing or fabricating information, or flat-out refusing to provide data.

A Note for International Players

The regulations also state that overseas internet platforms providing services within China must also report information according to the rules set by the State Council’s tax department.

The message is clear: whether you’re a domestic giant or a foreign player, if you’re operating in China’s digital space, these new tax information reporting regulations for internet platforms apply to you.

References & Further Reading

• Xinhua News Agency – Official Website
• State Council of the People’s Republic of China – “电子商务法” (E-commerce Law of the People’s Republic of China)
• State Taxation Administration of the People’s Republic of China – Official Website

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