China Sets Quarterly Tax Reporting Rules for Internet Platforms, With First Reports Due in October

Platforms Must Report Seller and Worker Income Every Quarter

China has introduced tax reporting rules requiring internet platforms to submit identity and income information about businesses and workers using their services. Issued under State Council Decree No. 810 and effective from June 2025, the regulations make platforms a central part of efforts to track earnings across the digital economy.

The first reports are due in October 2025 and will cover income earned from July through September. After that, platform operators must report the previous quarter's information to local tax authorities within one month of the quarter ending.

E-commerce marketplaces, livestreaming services, short video platforms and other online services that enable transactions for profit fall within the rules. Both domestic platforms and foreign operators providing services within China are covered.

The change gives tax authorities a regular flow of information about earnings that can be difficult to track through traditional tax administration. Its stated aims are to curb tax evasion, make income more transparent and reduce unfair competition between businesses operating online and those in the traditional economy.

For sellers and workers, the practical change is that platforms must collect, check and submit information about their identities and earnings. For platform companies, it means a recurring reporting duty backed by fines of up to 500,000 yuan, about $70,000, and possible suspension of business operations for serious violations.

Authorities say the reporting system is not intended to increase taxes for the vast majority of businesses and workers. Existing tax relief remains in place, and qualifying workers providing services such as delivery, transport and housekeeping receive specific exemptions from the reporting requirements. Information already submitted through certain tax procedures, or available through government data sharing, also does not need to be reported again.

What Information Must Platforms Submit?

Platform operators must collect and verify information identifying the businesses and workers who generate income through their services. The reporting requirements combine identity records with earnings data, allowing tax authorities to connect income to the person or business receiving it.

• Identity details, including names, identification numbers and business registration information.
• Income and revenue data for the previous quarter.
• Platform domain names and business types.
• Unified social credit codes for businesses.

A unified social credit code is a business identification code. Alongside names and registration details, it helps identify which business an income record belongs to. Domain names identify the online addresses associated with platforms.

The obligation is broader than simply passing along a total sales figure. Platforms must verify that the information they submit is authentic, accurate and complete. That places responsibility on operators to maintain records that connect users, their business activities and their earnings.

When Reporting Begins and Which Income Is Covered

June 2025 marks the start of the regulations, while October is the first submission deadline. The initial reporting period covers July, August and September, giving platforms a defined quarter of income to include in their first reports.

The schedule is:

• June 2025: The regulations take effect.
• July to September 2025: The income period covered by the first reports.
• October 2025: Platforms submit their first reports to local tax authorities.
• Subsequent quarters: Reports are due within one month after each quarter ends.

Historical income earned before the regulations took effect is exempt from these reporting requirements. The new routine therefore focuses on reporting covered income under the new system, with the first scheduled submission covering the July to September period.

Quarterly reporting creates a repeating task for operators. Identity checks, income records and submission processes must work throughout the year so that information is ready after each quarter closes.

Which Workers and Records Are Exempt?

Delivery drivers, transport workers and housekeepers are among the people covered by a specific exemption for public convenience services. The exemption applies when those individuals qualify for tax exemptions or fall outside tax obligations under existing laws.

The conditions matter: the rule ties the reporting exemption to a worker's tax position, rather than simply to a job title. Qualifying workers providing these everyday services are excluded from the relevant reporting requirements.

Platforms also do not have to resubmit information already provided through tax withholding declarations. Tax withholding is a process in which tax is deducted from a payment and declared to the tax authority.

Information accessible through government data sharing is another exemption from duplicate submission. Together, these provisions are intended to reduce repeated reporting and ease the administrative burden on platform operators.

Why Authorities Want a Clearer Picture of Online Earnings

Online marketplaces, livestreaming and gig work have enabled millions of people to earn income through digital services. These activities can be difficult to track using traditional tax administration methods, creating concerns about hidden earnings, tax evasion and unequal competition.

China's reporting rules seek to narrow that information gap by requiring platforms to provide records regularly. Authorities aim to ensure participants pay the taxes they owe while protecting businesses and workers who already comply.

Wang Weiqing, a fiscal policy expert, described the change as a step toward clearer responsibilities for platforms and fairer treatment across the economy:

The new rules are a milestone in the governance of China's digital economy. They clarify the compliance obligations of platform operators, reduce the room for tax avoidance by vendors and employees of the platform, narrow the tax gap between the real and digital economies, and create a more level playing field for all.

The competition issue is concrete. A merchant who hides income may have a pricing advantage over a business that pays its taxes. More complete reporting is intended to reduce that advantage and make compliance a more consistent part of doing business online.

Will Most Sellers and Workers Pay More Tax?

The State Taxation Administration says more than 90% of internet merchants and workers did not experience an increase in tax payments during pilot programs for the reporting system. Authorities say the rules are not intended to raise the tax burden for the vast majority of participants.

Small and micro enterprises already benefit from preferential tax policies, and those policies remain in place. Merchants with monthly sales under 100,000 yuan, about $14,000, are exempt from value added tax, or VAT. VAT is a tax associated with sales of goods and services.

Platform workers earning less than 120,000 yuan a year, about $16,700, after deductions are generally exempt from personal income tax. Deductions are amounts taken into account when working out the income on which tax is calculated.

The two figures concern different measures: the merchant threshold is based on monthly sales, while the worker threshold concerns annual income after deductions. Both help explain why submitting more income information can leave many participants' tax payments unchanged.

People who have underreported earnings or evaded tax face closer oversight. Authorities say their tax liabilities may "return to normal levels," meaning the taxes due under existing rules would be reflected more accurately in their payments.

How China's Approach Compares With Overseas Rules

China's regulations align with international efforts to make income earned through digital platforms more transparent. They are modeled in part on the Organisation for Economic Co-operation and Development's Model Reporting Rules for Digital Platforms.

Related reporting frameworks have been adopted in the European Union through DAC7, as well as in Australia, New Zealand and the United Kingdom. The shared objective is to combat tax evasion and support fair taxation by giving authorities better information about digital earnings.

China requires reports every quarter, while the OECD model typically calls for annual submissions. That means four reporting cycles in a year under China's system, compared with one under the typical OECD schedule.

China's approach is also stricter in its broad coverage, including nonresident entities providing services within the country, and in its penalties. Fines can reach 500,000 yuan, with business suspension possible for serious violations. These features adapt the international approach to China's own system of digital economy oversight.

Platforms Face Verification and Data Security Duties

Tax authorities must provide secure reporting channels that are easy to use, along with technical guidance and policy consultations. These duties are intended to help operators understand the requirements and submit their information.

Platforms must verify the authenticity, accuracy and completeness of their submissions. They are protected from penalties when they have fulfilled their verification duties but still receive incorrect information from users. The protection makes the work performed by the platform an important part of assessing its responsibility.

Privacy safeguards accompany the reporting obligations. Internet platform companies must securely store tax information, while tax agencies must maintain confidentiality and establish safeguards for managing the data in accordance with the law.

The information involved includes identity details and earnings, so both collection and storage carry responsibilities. Platforms are responsible for handling the records they gather, and tax authorities are responsible for protecting the records they receive.

Gig Work Makes Collection More Complicated

Many gig workers in China are registered on multiple platforms and have complex employment relationships. That dispersed pattern of work presents practical challenges for collecting and reporting tax information.

Platform operators will need to invest in updated compliance systems and data management processes, according to industry experts. Regular submissions require reliable identity records, earnings data and checks on which information has already been reported or qualifies for an exemption.

Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, said easing reporting requirements could reduce the burden on operators and support people earning lower incomes through flexible work:

Easing reporting requirements is expected to streamline operational processes for platforms, reduce their compliance burdens, and enhance efficiency. A more adaptable reporting regime may also help encourage flexible employment among low-income groups by supporting their ability to earn a reasonable income.

Some analysts expect greater transparency to reduce the pricing advantage of online merchants who previously underreported income. That could support more stable and fair competition in digital markets, alongside the changes platforms must make to their internal reporting systems.

Penalties Support a Broader Push for Fair Taxation

Platforms that fail to comply face fines ranging from 20,000 to 100,000 yuan for minor breaches. Serious violations can bring fines of up to 500,000 yuan and suspension of business operations.

Tax authority personnel are also subject to accountability if they commit illegal acts while managing the reports. The regulations therefore place duties on both the companies submitting information and the officials handling it.

China's wider aim is to regulate and support the healthy development of its digital economy. As online platforms become an increasingly important part of gross domestic product, the value of the country's economic output, fair taxation and fewer opportunities for evasion are seen as necessary for economic stability over time.

The reporting system combines international approaches with requirements tailored to China. More frequent submissions and broad coverage strengthen tax administration, while exemptions, protection for platforms that complete their checks, and confidentiality duties address the burden and risks of collecting income records.

For businesses and workers, the immediate change is greater visibility of covered earnings. For platforms, it is a regular obligation to gather accurate information and protect it. Existing tax relief remains central to the government's position that most compliant participants should not face higher payments.

Key Points

• State Council Decree No. 810 introduced internet platform tax reporting rules effective from June 2025.
• The first reports are due in October 2025 and cover income from July through September.
• Domestic and foreign platforms providing services in China must report covered identity and income information quarterly.
• Qualifying delivery, transport and housekeeping workers receive reporting exemptions, and historical income before the regulations took effect is excluded.
• Information already declared through tax withholding or accessible through government data sharing does not need to be submitted again.
• Existing tax relief remains in place. More than 90% of merchants and workers saw no increase in tax payments during pilot programs, according to the State Taxation Administration.
• Platforms must verify records and securely store information, while tax authorities must protect confidentiality.
• Serious violations can lead to fines of up to 500,000 yuan and suspension of business operations.