China’s tax man is coming for live-streamers who evade taxes as local economies struggle

Some local-level authorities across China appear to be stepping up crackdowns on tax evasion among internet streamers, as flagging tax revenue has weighed heavy on local economies, and analysts expect such investigations to be more common in the near future.

On Friday, China’s State Taxation Administration announced three cases of tax evasion from 2020-23 involving live-streaming influencers, and hefty fines were imposed, according to a statement on its official website.

In one case, Sichuan province in southwest China fined an internet celebrity 14.31 million yuan (US$1.98 million) for evading 8.05 million yuan in taxes. In northeastern Liaoning province, an individual faced a penalty that nearly doubled the 7.35 million yuan he did not pay in taxes. And in the eastern province of Zhejiang, a live-streaming host was slapped with a 2.47 million yuan fine for his tax transgression.

The country’s highest tax regulatory body pledged to support the growth of diverse business entities while upholding a strict “zero tolerance” policy against tax evasion and related misconduct.

“As public figures, online live-streaming influencers have a legal duty to fulfil their tax obligations and should set a positive example for their fans,” the administration said.

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China’s live-streaming industry heats up as millions of would-be hosts vie to break into the field

China’s live-streaming industry heats up as millions of would-be hosts vie to break into the field

The fined broadcasters were all part of a booming trend in China’s digital landscape: selling products through live-streaming.