Core Points - The article discusses the implementation of the "Regulations on Reporting Tax Information by Internet Platform Enterprises," which requires platforms to report identity and income information of operators and employees starting from October 1, 2025 [2] - As of October 25, over 6,500 platforms have completed the initial reporting, marking a significant increase from 4,100 platforms reported on October 15, with a coverage rate exceeding 95% [2][3] - The article highlights discrepancies between self-reported income by operators and the income reported by platforms, often due to timing differences, processing discrepancies, and non-compliance behaviors [3][4] Group 1 - The new regulations have led to a substantial increase in tax information reporting compliance among internet platforms, with over 6,500 platforms reporting by late October [2] - The tax authorities are issuing risk alerts to businesses whose self-reported income is significantly lower than the platform-reported income, indicating a shift towards more stringent tax oversight [2][4] - Non-compliance behaviors, such as income concealment and improper invoicing, have been identified as major reasons for discrepancies in reported income [4][6] Group 2 - The article draws parallels with international practices, such as the UK's approach to tax compliance for e-commerce platforms, which includes sending reminders to sellers suspected of underreporting income [5] - The EU's DAC7 framework is mentioned as a model for cross-border data sharing among member states, which could inform China's tax reporting mechanisms [5][6] - The increasing automation and precision in tax oversight are expected to challenge traditional cross-border e-commerce structures, particularly those lacking substantial operational presence in their registered locations [6][7] Group 3 - The article emphasizes the need for internet platforms to enhance their compliance capabilities, suggesting the development of standardized contracts and automated systems for income reporting [8] - Platforms are encouraged to assist operators in understanding tax obligations and improving compliance through educational resources and automated reporting tools [8][9] - The anticipated challenges for operators include the complexity of income sources and the need for accurate tax reporting amidst evolving regulations [9][10] Group 4 - A case study of a technology company in the live-streaming e-commerce sector illustrates the potential risks of non-compliance, including income concealment and improper expense reporting [10][11] - The company has initiated a tax compliance transformation, focusing on accurate income reporting and obtaining proper invoices for expenses to mitigate risks [11][12] - The article outlines strategies for operators to prepare for tax audits, including maintaining comprehensive records and understanding applicable tax incentives [12][13][14]