China sees higher platform tax compliance after new reporting framework

Core Viewpoint - China's tax authority has updated tax regulations for online platforms to enhance consistency and support a unified national market, with over 8,000 platforms complying with the new requirements [1][2]. Group 1: Tax Compliance and Reporting - Digital platforms, both domestic and international, are now required to submit tax-related information quarterly, including operator and worker identification and income data from the previous quarter [2]. - Since the implementation of the new regulations, the number of merchants paying taxes on platforms has increased by 32% compared to the prior period [3]. - The issuance of invoices by small-scale taxpayers on platforms has risen by 25% year-on-year [3]. Group 2: Market Impact and Reforms - The new regulations have contributed to reducing disorderly competition, such as inflated sales volumes and traffic through fake transactions [3]. - In 2025, taxpayers made over 130 billion yuan in cross-provincial electronic tax payments, marking a 39% increase from the previous year [4]. - Nearly 40,000 taxpayers completed cross-provincial relocations, reflecting an 18.7% year-on-year rise [4]. Group 3: Expert Insights - An expert from the Academy of China Open Economy Studies stated that the new rules provide institutional safeguards for enhancing market transparency and fairness, aiding in the establishment of a well-regulated unified national market [5].