China's tax evasion crackdown is now focusing on the massive streaming industry in the country. This means that live streamers are now required to pay their taxes regularly.
A computer screen shows a live streamer selling refrigerators ahead of the Singles Day shopping festival which falls on November 11, at a JD outsourcing livestream company in Beijing on November 9, 2021. (Photo by Jade GAO / AFP)
Streaming platforms are asked to work with the government to collect the income taxes and acquire the personal information of the influencers.
Chinese regulators confirmed this new effort via their official press release. Ensuring that streamers are paying taxes will standardize the profit-making behavior of online live broadcasting in the country.
China Tax Evasion Crackdown Targets Streamers!
According to Bloomberg's latest report, streaming companies are now required to work with the Chinese government and other agencies, such as the Cyberspace Administration of China.
A man walks past the logo of Alibaba (China) technology Co., Lth on August 12, 2005 in Beijing, China. Yahoo Inc. signed a deal to buy 40 percent of Alibaba.com for EUS 1 billion cash while handing over the running of its China operations to the Chinese online retailer in the biggest investment by a foreign company to gain access to China's 100 million net users.
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Although Chinese regulators did not name the streaming companies, their announcement is definitely calling out the top streaming firms.
Right now, Alibaba Group Holding, Bilibili Co., and Kuaishou Technology are the ones dominating the Chinese streaming industry.
"It's quite clear regulators want to ensure that this commerce format isn't run as a get-rich-quick scheme," said Chinese analyst Michael Norris, who is working for the consultancy firm AgencyChina.
Streamers Combine Selling and Entertainment
As of the moment, many live streamers are able to evade taxes by selling items during their live streams. The combination of entertainment with buying has been effective since the pandemic started.
Because of this, the Chinese government is now making sure that online influencers and other common streamers generating income from streaming are paying their taxes properly.
Recently, one of the top Chinese streamers, Viya (Huang Wei), was ordered to settle around $210 million in taxes, fines, and late fees. The influencer settled this back in December 2021.
If you want to see further details about China's latest tax evasion crackdown in the country's streaming industry, you can visit this link.
Meanwhile, a new Twitch streaming tool has recently launched so that ban evaders can be tracked down.
On the other hand, a U.K.-based streamer previously planned to change the brand name "Squidgame" since it is similar to the popular Netflix series.
For more news updates about streamers and other related topics, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
