China’s tax authorities have told internet platforms to avoid passing tax obligations onto gig workers, tightening industry oversight while stepping up a crackdown on tax-dodging internet influencers.
“Platforms should not disguise additional fees during tax withholding and remittance processes, nor should they use such processes to shift tax obligations and increase gig workers’ burdens,” officials from the State Taxation Administration said at a press conference on Monday.
As regulation of the sector increases, the administration said gig workers – including food-delivery riders, ride-hailing drivers and housekeepers – would be exempt from tax reporting requirements, which are typically handled by platforms.
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The administration added that it would step up supervision to ensure platforms do not offload their own tax liabilities onto gig workers.
Since June, China has required e-commerce, short-video and social-media platforms to report income earned by their users, including merchants and influencers. More than 7,000 domestic and overseas companies have complied so far.
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Authorities are also scrutinising the industry’s top earners. The State Taxation Administration said it has investigated 1,818 individuals with high income and assets – including celebrities and major influencers – recovering 1.52 billion yuan (US$215 million) in taxes this year.
Enforcement ramped up in 2021, when Hangzhou authorities imposed a record 1.34 billion yuan fine on top e-commerce host Viya. By July this year, more than 360 tax evasion cases involving influencers had been uncovered, with over 3 billion yuan in taxes recuperated, the regulator said.