July 2025: Quarterly reporting on platforms’ third party sales
China’s State Administration of Taxation (SAT) has implemented new tax reporting rules targeting digital platform operators to enhance transparency and strengthen tax compliance.
Effective from 23 June 2025, under State Council Decree No. 810, the regulation mandates that internet platform companies operating in China—including non-resident entities offering for-profit services—submit quarterly reports on the identity and income of users such as livestreamers, online sellers, and content creators. The first reports are due by 30 October for July to September 2025.
This follows similar marketplace reporting obligations in: Vietnam; the EU via DAC7; Australia; New Zealand; and the UK.
The OECD marketplace reporting guidelines has gone a long way to standardising the reporting obligations globally – although China’s quarterly version is much stricter.
Names and taxable income data
The regulation consists of 14 key provisions. Central to the reform is the requirement for platforms to provide detailed information to SAT on individuals generating income through their services. This includes submitting:
- user identities (content creators; e-commerce sellers etc);
- income data;
- platform domain names;
- business types; and
- other key company information.
The aim is to create a fairer and more standardised tax environment across the rapidly growing digital economy.
To reduce administrative burdens, the regulation includes exemptions and simplifications. For instance, platforms are not obligated to report information on certain service providers such as delivery personnel, transport workers, and housekeepers who either qualify for tax exemptions or are not subject to taxation under current laws. In addition, historical income prior to the regulation’s enactment is exempt, and platforms do not need to report information already filed through withholding systems or accessible via inter-agency data sharing.
Tax authorities must also provide secure, user-friendly submission systems, along with technical guidance for platform compliance. The rules encourage digital submissions using formats and standards defined by the State Administration of Taxation.
Fines for non-compliance
Importantly, platforms are accountable for verifying tax-related data accuracy but are protected from penalties if they fulfill verification duties and still receive incorrect information from users. The first required reports are due in October 2025. Non-compliance can result in penalties of up to RMB 500,000 and business suspensions. Authorities stress the rules won’t raise taxes for compliant small businesses but are expected to increase the tax liability for those underreporting income.
In sum, this move marks a significant step in modernizing China’s tax administration to adapt to digital economic realities, balance compliance efforts, and encourage equitable tax contributions across the digital landscape.
