Regulations not too taxing for platform economy

The central taxation and market regulatory departments have started soliciting public opinions on draft regulations on the reporting of tax-related information by internet platform enterprises. Due to the taxation authorities' lack of the platform enterprises' tax-related information, some enterprises have colluded with platforms to split income in an attempt to evade taxes. Some people even set up fake platforms to engage in illegal activities such as false invoicing and money laundering.

The regulations are conducive to promoting the healthy development of the platform economy, preventing tax evasion, combating noncompliant business practices, such as false marketing, and protecting the legitimate rights and interests of law-abiding operators and consumers.

Platform enterprises gather a large amount of data resources and record the identity and transaction information of operators on the platform. These data are an important basis for industry supervision that is crucial to identify tax-related illegal activities such as tax evasion, and can promote the compliance operation of platform enterprises.