China's Tax Administration Chases Live Streaming Influencers For Tax Avoidance

JAKARTA – China's tax office announced on Wednesday, March 30, that it will crackdown on tax evasion in the country's booming live streaming industry. Tax officials in China will begin requiring online platforms to report livestream identities, income, and profits every six months.

The State Tax Administration announced on its website that live streaming and platforms must compete fairly and meet their legal obligations to pay taxes.

"Livestreaming has played an important role in recent years in promoting flexible work," said the State Tax Administration.

"At the same time, there are problems such as poor management by live streaming platforms, irregular commercial marketing behavior, tax evasion, which hinder the healthy development of the industry and undermine justice and social justice," he added.

Live Streaming has grown in popularity in China, with millions of influencers running channels such as Douyin, TikTok's Chinese equivalent, Kuaishou, and other short video platforms. They talk about all sorts of topics including lifestyle, food, games, and travel.

Chinese regulators have targeted some of these people on charges of tax evasion, in particular some who sell products via live streaming.

Internet celebrity Viya, whose real name is Huang Wei and known in China for his sales prowess, was fined 1.34 billion yuan last December for concealing personal income and other offenses in 2019 and 2020.

China's cyber watchdog also warned earlier this month that it would target companies managing social media influencers for tax fixes this year.

The Wall Street Journal reported last Tuesday that Chinese authorities are working on regulations to limit internet users' daily monetary spending on digital tips.