Actual Data Reported One Year Later: Data Standards Have Been Harmonized

On July 28, 2026, the State Taxation Administration disclosed details regarding the first anniversary of the implementation of the “Regulations on the Reporting of Tax-Related Information by Internet Platform Enterprises” (promulgated and implemented on June 20, 2025) at a press conference held by the State Council Information Office:

• Nearly 9,700 domestic and international platformsHas fulfilled its tax-related information reporting obligations in accordance with regulations;
• 9,692 companies submitted reports in the first quarter of 2026, an increase of 391 TP3T compared to the initial submission in October 2025;
• First QuarterThe amount of invoices obtained by small-scale taxpayers on the platform from upstream suppliers increased by 48% year-over-year..;
• The percentage of merchants whose self-reported income exceeded the income reported by the platform increased by 26 percentage points..;
• The number of merchants filing tax returns and paying taxes increased by 37% compared to before the implementation of the “Regulations.”(As disclosed by Rong Hailou, Chief Economist of the State Taxation Administration).

The meaning of these figures is quite straightforward:The income is already in the tax authority's system, and the verification is done automatically.The gray area that was once maintained by the principle of ”if the platform doesn’t report it, I won’t say anything either” will have largely disappeared by 2026.

Reporting Schedule and Responsible Parties: Who Should Report and When

Under current practices, platform reporting has become a routine process:

1. Submit quarterly—First Quarter of 2026Platforms at level 70% and above must be completed by April 20.Submissions: 80 percent were completed by July 20 for the second quarter;
2. The platform is the party responsible for fulfilling this obligation.—The platform submits information on the identities and income of the business operators and employees within the platform,Business operators themselves have no obligation to submit reports..;
3. This means that merchants cannot circumvent the verification process by ”failing to report”; they must rely on accurate reporting to ensure the data matches.

Risk Factors: Three Types of Situations Most Likely to Trigger Comparison Discrepancies

Based on practical experience, discrepancies between the data reported by the platform and that reported by merchants typically fall into three categories:

• Cross-Platform Operations: When the same entity operates stores on multiple platforms, each platform reports its data separately, but the company only reports a portion of it, resulting in an underestimation of total revenue;
• Differences in the Timing of Revenue Recognition: The platform aggregates data based on transaction completion dates, while businesses report based on invoice issuance or payment receipt dates; discrepancies spanning multiple periods are magnified from one quarter to the next;
• Mixed Use of Subjects: Receiving payments through a personal account but filing taxes under a corporate entity—or vice versa—can result in the reported identity information not matching the tax filing entity.

Handling Principles: Don’t wait until you receive a risk alert notification to take action. We recommend that, before each quarterly filing, you first export your income details from each platform’s backend system and perform a three-way reconciliation with your book income and reported income. Any discrepancies must be accompanied by a written explanation and supporting documentation.

Individual Income Tax for Platform Workers: Remuneration for Services Now Subject to Cumulative Withholding

In 2026, tax authorities in multiple regions confirmed that income from services rendered by platform workers would be taxed according toCumulative Withholding MethodWithholding and Advance Payment (Announcement No. 16 of 2025 by the State Taxation Administration):

1. Cumulative expenses are calculated based on20% of revenueCalculation;
2. Deductions are calculated based on5,000 yuan/month × number of consecutive monthsConfirmed;
3. be applicableTable of Withholding Rates for 3%–45%The

This change has a significant impact on self-employed individuals with fluctuating incomes—while the initial withholding may be lower, butWhen combining annual income with comprehensive income for the year-end tax settlement, any overpayment must be refunded and any underpayment must be paid....Don’t just look at your monthly take-home pay and assume your tax burden has decreased.

In addition, on June 2, 2026, the Tianjin Municipal Taxation Bureau clarified that:Social security contributions paid by self-employed individuals may be deducted during the annual comprehensive income tax settlement., The navigation path is [Expenses, Tax-Exempt Income, and Pre-Tax Deductions]—[Special Deductions].

Annual Tax Settlement: Don’t Forget There’s Also an ”Exemption from Filing” Option

The current policy (January 1, 2024, through December 31, 2027) stipulates:Resident individuals whose annual comprehensive income does not exceed 120,000 yuan and who are required to pay additional tax, or whose additional tax liability does not exceed 400 yuan, are exempt from filing an annual tax settlement.

However, there are two caveats to keep in mind—this exemption applies under the ”back taxes” classification,If you have overpaid taxes and are eligible for a refund, you should still proactively file your annual tax settlement., otherwise you will forfeit your tax refund.

Businesses and Individuals: Two Action Lists

Merchant/Business Side:

1. Establish a platform revenue ledger and consolidate the data by platform and by quarter;
2. Verify that the submitted identification information matches the actual reporting entity;
3. Closing the gap in the invoice chain for upstream procurement—this was also the direct reason for the 48% increase in invoice value during the first quarter;
4. For cross-border or multi-platform businesses, it is important to establish a tax structure in advance to avoid double-counting or underreporting of the same revenue.

From the Perspective of Platform Workers:

1. Retain the revenue and withholding tax certificates from each platform;
2. Proactively file a comprehensive income tax return between March and June each year;
3. Social security contributions paid by the individual are deductible before taxes in accordance with regulations.

Qicaiying has a team with hands-on experience in financial and tax compliance for cross-border e-commerce and the platform economy. It can assist merchants in reconciling platform revenue with tax filing data, strengthening the invoice chain, and designing individual income tax reporting frameworks for flexible employment arrangements.