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The tax administration is monitoring the potential tax evasion behaviors of individual platform enterprises.
On September 5, Jin10 reported that just before internet platform companies are about to submit relevant tax-related information, some platforms have recently attempted to batch convert their employees into individual industrial and commercial households for registration at the platform's location, transforming personal labor remuneration and other income into business income for individual households. This is intended to exploit the fixed taxation of business income to achieve a reduction or avoidance of personal income tax payments. A relevant official from the State Administration of Taxation stated that the tax authorities will closely cooperate with relevant departments to further strengthen the monitoring and analysis of the behavior of batch converting to individual industrial and commercial household registrations, enhance the precision and effectiveness of collaborative regulation, and lawfully investigate various non-compliant business activities such as converting income types, in order to jointly maintain a fair business environment under the rule of law.