On June 23, 2025, the Provisions on Reporting Tax related Information of Internet Platform Enterprises (hereinafter referred to as the "Provisions") was promulgated and implemented. Compared with the Regulations on Submission of Tax related Information by Internet Platform Enterprises (Draft for Comments) released on December 20, 2024 (hereinafter referred to as the "Draft for Comments"), the Regulations set more reasonable responsibilities for platform enterprises and made the submission of tax related information by platform enterprises more operational. Here, from the perspective of a tax lawyer, the author interprets the provisions in the Regulations that have an impact on tax authorities, platform enterprises, platform operators, and practitioners one by one.

Article 1 These Provisions are formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Collection and the E-commerce Law of the People's Republic of China in order to regulate Internet platform enterprises to submit tax related information to the tax authorities about operators and employees on the platform, improve the efficiency of tax services and management, protect the legitimate rights and interests of taxpayers, create a fair and unified tax environment, and promote the standardized and healthy development of the platform economy.

Interpretation:

This provision confirms the target audience for the submission of tax related information in the "Regulations", namely the operators and employees within the platform, which helps tax authorities to grasp the tax related information of taxpayers within the platform and facilitate tax collection and management.

Compared to the "Draft for Soliciting Opinions", the "Regulations" have added legislative purposes of "protecting the legitimate rights and interests of taxpayers" and "creating a fair and unified tax environment". The tax management of platform operators and employees is equivalent to that of offline entities, which helps to create a unified and fair tax environment.

Article 2 Internet platform enterprises shall submit to their competent tax authorities the identity information, income information and other tax related information of operators and employees on the platform in accordance with these Provisions.

The term "Internet platform enterprises" as mentioned in these Provisions refers to the operators of e-commerce platforms as stipulated in the Electronic Commerce Law of the People's Republic of China and other legal persons or organizations without legal personality that provide profitable services such as online business places, transaction matchmaking and information release for online transactions; The term "practitioners" refers to natural persons who provide profitable services in the name of individuals through the Internet platform.

Interpretation:

The submission of identity and income information enables tax authorities to more accurately grasp the transaction and income situation of operators and practitioners on the platform, facilitating tax collection and management.

The Regulations are connected with the Electronic Commerce Law of the People's Republic of China to clarify the concept of Internet platform enterprises. However, compared with the scope of platform operators in the Electronic Commerce Law, the Regulations not only apply to platform operators, but also extend to other legal persons or unincorporated organizations that provide online business sites, transaction matchmaking, information release and other profit-making services for Internet trading activities, making the subject of information submission more comprehensive. In addition, the Regulation also clarifies the concept of "practitioners" for the first time in legal documents, making the regulatory targets corresponding to tax related information reporting more clear.

Article 3 An Internet platform enterprise shall, within 30 days from the date of implementation of these Provisions or from the date of engaging in Internet business, submit to its competent tax authority such information as the platform domain name, business type, unified social credit code and name of relevant operating entities.

Interpretation:

This article stipulates that Internet platform enterprises themselves shall report relevant information to the competent tax authorities within the specified date. As for the time of information submission, the Draft for Comments shall report to the competent tax authority within 30 days after obtaining the business license for value-added telecommunications business or 30 days after engaging in Internet business, which shall be changed to "within 30 days after the implementation of these Provisions or 30 days after engaging in Internet business", which is more reasonable. If according to the provisions of the draft for soliciting opinions, platform enterprises are required to submit immediately after the regulations come into effect, it will bring huge pressure to tax authorities and platform enterprises, and is not feasible. It should also be noted that this provision will be promulgated and implemented on June 23, 2025, so Internet platform enterprises need to submit the platform domain name, business type, unified social credit code and name of relevant operating entities and other information to their competent tax authorities before July 22.

Article 4 An Internet platform enterprise shall, within the next month after the end of a quarter, submit to its competent tax authority the identity information of the operators and employees on the platform and the income information of the previous quarter in accordance with the specific categories and contents of the identity information and income information specified by the competent tax department of the State Council.

If employees engaged in distribution, transportation, housekeeping and other convenient labor activities on the Internet platform enjoy tax preferences or do not need to pay taxes according to law, Internet platform enterprises do not need to submit their income information. Internet platform enterprises do not need to submit the tax related information that has been filled in when handling tax related matters such as withholding declaration and declaration on behalf for operators and employees in the platform according to regulations.

Interpretation:

This article stipulates the date when Internet platform enterprises submit the identity information and income information of operators and practitioners on the platform; It also specifies the scope of personnel and matters that do not require information submission. Referring to the reply of the head of the Ministry of Justice and the State Administration of Taxation on June 23 to the reporter's question on the Provisions on the Submission of Tax related Information by Internet Platform Enterprises, Internet platform enterprises will submit the identity information and income information of operators and practitioners on the platform for the first time in October this year.

Article 5 Internet platform enterprises shall submit tax related information through the Internet or other means in accordance with the data caliber and standards for tax related information submission stipulated by the competent tax department of the State Council.

Tax authorities should provide secure and reliable channels for submitting tax related information, actively utilize modern information technology, provide interface services such as direct reporting, uploading and importing, and provide consulting services such as policy interpretation and problem solving.

Article 6 Internet platform enterprises shall verify the tax related information of operators and employees on the platform and be responsible for its authenticity, accuracy and integrity. The tax authorities may, according to the needs of tax supervision, verify the tax related information submitted by Internet platform enterprises. Internet platform enterprises have fulfilled their obligation to verify the tax related information submitted by them. If the tax related information is untrue, inaccurate or incomplete due to the fault of the operators or employees in the platform, the Internet platform enterprises will not be held accountable.

Interpretation:

Although this article stipulates that Internet platform enterprises shall be responsible for the authenticity, accuracy and integrity of the tax related information they submit. However, it is also clear that platform enterprises are exempt from liability if false information is provided by operators or practitioners within the platform, which prevents the expansion of platform enterprise responsibility and contributes to the development of the platform economy.

Article 7 When tax authorities carry out tax inspections or discover tax related risks according to law, they may require Internet platform enterprises and interested parties to provide tax related information such as contract orders, transaction details, capital accounts, logistics, etc. of operators and employees in the platform suspected of violating the law. Internet platform enterprises and interested parties shall provide truthfully according to the time limit, method and content required by the tax authorities.

Interpretation:

Contract flow, fund flow, and logistics information are the most powerful and objective evidence to confirm transactions and revenues. The tax authorities require platform enterprises and related parties (such as logistics companies) to provide the above information, which plays a significant role in restoring transaction and income facts and enhancing tax collection and management capabilities in the investigation and handling of tax cases.

Article 8: Departments such as Industry and Information Technology, Human Resources and Social Security, Transportation, Market Supervision, and Cyberspace Administration shall strengthen the sharing of tax related information with tax authorities. Tax authorities shall not require Internet platform enterprises to repeatedly submit tax related information that can be obtained through information sharing.

Interpretation:

Strengthen information sharing and reduce the burden caused by duplicate reporting to platform enterprises.

Article 9 Internet platform enterprises shall, in accordance with laws, administrative regulations and relevant national provisions, standardize the preservation of tax related information of operators and practitioners on the platform.

Tax authorities shall keep confidential the obtained tax related information in accordance with the law, establish a tax related information security management system in accordance with laws, administrative regulations, and relevant national provisions, implement data security protection responsibilities, and ensure the security of tax related information.

Article 10 If an Internet platform enterprise commits any of the following acts, the tax authority shall order it to make corrections within a time limit; Those who fail to make corrections within the prescribed time limit shall be fined not less than 20000 yuan but not more than 100000 yuan; For those with serious circumstances, they shall be ordered to suspend business for rectification and fined not less than 100000 yuan but not more than 500000 yuan:

（1） Failure to submit or provide tax related information within the prescribed deadline;

（2） Tax related information is concealed, falsely reported or omitted, or the tax related information is untrue, inaccurate or incomplete due to the reasons of Internet platform enterprises;

（3） Refuse to submit or provide tax related information.

Interpretation:

Strengthen the obligation and responsibility of platform enterprises to submit tax related information.

Article 11 Where the tax authorities and their staff members commit illegal acts in the management of the submission of tax related information of enterprises on the Internet platform, they shall be investigated for legal liability in accordance with the provisions of relevant laws and administrative regulations.

Interpretation:

Establishing accountability clauses for tax officials' illegal behavior can help standardize tax law enforcement.

Article 12 Internet platform enterprises do not need to submit the tax related information of operators and employees on the platform before the implementation of these Provisions.

If an overseas Internet platform enterprise provides for-profit services within the territory of the People's Republic of China, it shall submit the tax related information of the operators and practitioners on the platform in accordance with the provisions of the competent tax department of the State Council.

Interpretation:

The failure to submit tax related information before the implementation of the Regulations does not mean that the tax authorities have waived their responsibility for the illegal activities of operators and employees on the platform. If the enterprises or employees within the platform are subject to tax inspections, and the time frame involves before the implementation of the Regulations, the tax authorities require the platform enterprises to cooperate, and the platform enterprises should also cooperate with the tax authorities to provide corresponding information.

Article 13: The competent tax department of the State Council shall formulate implementation measures in accordance with these regulations.

Article 14: These regulations shall come into effect from the date of their promulgation.

general comment

The identity information and income information of operators and employees on the Internet platform recorded by enterprises is an important basis for tax authorities to carry out tax supervision. After the implementation of the Regulations, the tax authorities will timely and comprehensively grasp the tax related information of relevant operators and practitioners, and improve the efficiency of tax collection and management. Relevant practitioners should pay more attention to tax compliance, not only to achieve compliance in future operations, but also to conduct self-examination of non-compliance in previous operations to reduce the risks caused by tax non-compliance.