This means that taxes are deducted before you even transfer the money to your bank card. The leeway you used to have\u2014such as \u201cnot withdrawing cash,\u201d \u201cwithdrawing across months,\u201d or \u201cwithdrawing across years\u201d\u2014is completely gone.<\/p>\n\n\n\n
Today, we\u2019ll explain the changes, common misconceptions, risks, and compliance strategies related to this new policy in plain, easy-to-understand language.<\/p>\n\n\n\n Old rule: Taxes are withheld only upon withdrawal, and I decide when that happens.<\/strong><\/p>\n\n\n\n The rules used to be simple: when commissions were credited to your platform balance, the platform did not withhold individual income tax. Only when you clicked \u201cWithdraw\u201d would the platform withhold and remit individual income tax on a per-transaction basis.<\/p>\n\n\n\n This gives many influencers some wiggle room\u2014is your income too high this month and you're worried about paying too much in taxes? Don't cash it out; save it for next month. Did your income skyrocket this year and you want to pay less in taxes? Don't cash it out; hold onto it until next year and withdraw it gradually.<\/p>\n\n\n\n To put it simply, in the past, influencers could control the timing of when taxes were withheld.<\/p>\n\n\n\n New Rule: Taxes Are Deducted at the Time of Settlement; the Platform Has the Final Say<\/strong><\/p>\n\n\n\n Starting October 1, 2026, the rules will change completely.<\/p>\n\n\n\n According to Announcement No. 16 of 2025 issued by the State Taxation Administration, when internet platform enterprises file withholding tax returns on behalf of workers on their platforms, they shall calculate and withhold taxes in advance using the cumulative withholding method.<\/p>\n\n\n\n Specifically: Once commissions are settled and credited to your platform balance, individual income tax is withheld at the same time; regardless of whether you withdraw the funds or when you do so, the tax has already been withheld at the time of settlement; the balance you see is already the net amount after taxes.<\/p>\n\n\n\n A one-sentence summary of the comparison between the old and the new:<\/strong><\/p>\n\n\n\n Old rules: Funds are held on the platform \u2192 Withdrawal \u2192 Tax deduction.<\/strong><\/p>\n\n\n\n New Rules: Commission Settlement \u2192 Direct Tax Deduction \u2192 Funds Deposited into Balance (After Tax).<\/strong><\/p>\n\n\n\n It used to be \u201cpay taxes only when you withdraw funds,\u201d but now it\u2019s \u201cpay taxes as soon as the funds are credited.\u201d The time lag is gone, and so is the room for maneuver.<\/p>\n\n\n\n Misconception 1: \u201cIf I don\u2019t withdraw my funds, won\u2019t taxes be withheld?\u201d<\/strong><\/p>\n\n\n\n Wrong! Completely wrong! Under the new rules, the tax deduction occurs at the time of \u201csettlement and posting,\u201d not when you \u201cwithdraw funds.\u201d As soon as the commission is credited to your account, the tax is deducted. Whether you withdraw the funds or not, the tax has already been paid. Leaving the money on the platform won\u2019t save you a single cent in taxes.<\/p>\n\n\n\n Misconception #2: \u201cIf I make fewer withdrawals, will I pay less in taxes?\u201d<\/strong><\/p>\n\n\n\n Wrong! While withdrawing funds in installments used to allow you to adjust your monthly tax burden, under the new rules, individual income tax is withheld at the time each commission is settled. The number of withdrawals you make, the timing of those withdrawals, and the amount of tax you pay are completely unrelated.<\/p>\n\n\n\n Misconception 3: \u201cWill business-to-business transactions involving sole proprietorships and companies also be affected?\u201d<\/strong><\/p>\n\n\n\n Here\u2019s the key point: This new policy applies only to payments received by individuals. If you have already registered as a sole proprietor or a limited liability company and are conducting business through corporate accounts, the withholding rules will not be affected by this change.<\/p>\n\n\n\n As a result, many influencers with a following of 100,000 or more have actually been receiving payments through business accounts for quite some time. The influencers most affected by this change are those who still receive payments under their personal names.<\/p>\n\n\n\n 1. Back taxes + late payment penalties + fines<\/strong><\/p>\n\n\n\n If you have previously managed your tax burden by \u201cnot withdrawing funds,\u201d once the new policy takes effect, the platform will strictly enforce withholding in accordance with the new rules. If the tax authorities find that your historical income does not match your tax returns, you may face back taxes, late payment penalties, or even fines.<\/p>\n\n\n\n 2. Abnormal Activity in Personal Account Transactions<\/strong><\/p>\n\n\n\n Excessively large personal receipts and unusual bank transaction activity may trigger anti-money laundering alerts, or even result in the bank requesting an explanation of the funds' source.<\/p>\n\n\n\n 3. The Impact of Regulatory Pressure on Platforms<\/strong><\/p>\n\n\n\n As tax regulations become stricter, the compliance pressure faced by platforms will be passed on to every influencer. In the future, platforms may require influencers to provide business registration documents; otherwise, they may restrict cash withdrawals or reduce commission rates.<\/p>\n\n\n\n Option 1: Register as a sole proprietor and use a business bank account for transactions<\/strong><\/p>\n\n\n\n Target Audience: Influencers with a monthly commission of 10,000 or more and a stable income.<\/strong><\/p>\n\n\n\n Register as a sole proprietor, sign a contract with the platform using your sole proprietorship status, and process payments through a business bank account.<\/p>\n\n\n\n Advantages: Not affected by the change in the withholding schedule; eligible to receive tax incentives for small-scale taxpayers in compliance with regulations; cost invoices can be properly recorded in the books, thereby reducing the tax burden.<\/p>\n\n\n\n Disadvantages: Requires bookkeeping and tax filing, involves some maintenance costs; requires opening a business bank account.<\/p>\n\n\n\n Option 2: Incorporate a limited liability company and establish a corporate structure<\/strong><\/p>\n\n\n\n Target Audience: Top influencers, teams, and individuals with an annual income of 500,000 or more.<\/strong><\/p>\n\n\n\n Sign contracts using a limited liability company to establish a compliant structure combining \u201cpersonal IP and corporate entity.\u201d<\/p>\n\n\n\n Advantages: The most thorough tax compliance; the ability to segment business operations (product sales, advertising, live-streaming tips, etc.) and account for them separately; facilitates fundraising and brand-building efforts.<\/p>\n\n\n\n Disadvantages: Highest maintenance costs; requires support from a professional finance and tax team.<\/p>\n\n\n\n Option 3: Retain your individual status, but file your tax returns properly<\/strong><\/p>\n\n\n\n Target Audience: New influencers with low monthly commissions and unstable income.<\/strong><\/p>\n\n\n\n If you don\u2019t want to register as a business entity for the time being, you should at least: understand how the platform calculates and withholds individual income tax; keep all income receipts and tax withholding records; and proactively file your annual tax return to avoid omissions.<\/p>\n\n\n\n But to be honest, this path is getting narrower and narrower. As regulations tighten, the ceiling on how much individuals can earn through personal accounts will keep getting lower.<\/p>\n\n\n\n 1. Check your account balance.<\/strong><\/p>\n\n\n\n If you still have a large amount of unwithdrawn earnings in your account, please settle them as soon as possible in September. According to the announcement, any income that was credited to your account but not withdrawn by September 2026 will be treated as income for the September tax period and reported and withheld in a single batch in October. If you have a large amount of money sitting in your account that hasn\u2019t been withdrawn, taxes will be withheld in a single lump sum in October.<\/p>\n\n\n\n 2. Assess the size of your income.<\/strong><\/p>\n\n\n\n If your monthly income is less than 10,000, you can temporarily remain a self-employed individual, but you must file your tax returns properly; if your monthly income exceeds 10,000, we recommend registering as a sole proprietor as soon as possible; if your annual income exceeds 500,000, consider setting up a limited liability company.<\/p>\n\n\n\n 3. Complete real-name verification and update your account information.<\/strong><\/p>\n\n\n\n A Bilibili announcement explicitly states that you must complete or update your real-name verification and confirm your payment method by September 14, 2026. Other platforms have similar requirements, so be sure to take action promptly to avoid any disruption to the normal processing of your earnings.<\/p>\n\n\n\n 4. Seek professional financial and tax services.<\/strong><\/p>\n\n\n\n Tax compliance is no small matter. We recommend having a professional firm conduct a comprehensive assessment and develop a compliance plan tailored to your specific circumstances.<\/p>\n\n\n\n As a professional financial and tax services firm, Qicaiying provides tax compliance solutions for new economy sectors such as e-commerce, live streaming, and social media. If you\u2019re confused by the new individual income tax withholding regulations\u2014whether your income structure is optimized, whether you need to register a business entity, or how to legally minimize your tax burden\u2014Qicaiying can provide you with one-on-one professional consultation services.<\/p>\n\n\n\n The simultaneous adjustment of the tax calculation timing by these three major platforms is driven by the implementation of Announcement No. 16 of 2025 issued by the State Taxation Administration. Judging by current policy trends, tax regulation of the platform economy will only become more standardized and stricter.<\/p>\n\n\n\n For influencers, rather than thinking about how to \u201cavoid taxes,\u201d it\u2019s better to embrace compliance as early as possible. After all, only by operating in compliance with the law can you go the distance.<\/p>","protected":false},"excerpt":{"rendered":" Recently, Douyin, Bilibili, and Weibo have successively issued announcements stating that, effective October 1, 2026, they will implement significant adjustments to the rules governing the withholding of personal income tax for individual live streamers, content creators, and bloggers.<\/p>\n \u6838\u5fc3\u53d8\u5316\u53ea\u6709\u4e00\u53e5\u8bdd\uff1a\u6263\u7a0e\u8282\u70b9\u4ece\u201c\u63d0\u73b0\u65f6\u201d\u524d\u79fb\u5230\u201c\u6536\u76ca\u5230\u8d26\u53ef\u63d0\u73b0\u65f6\u201d \u3002<\/p>\n This means that taxes are deducted before you even transfer the money to your bank card. The leeway you used to have\u2014such as \u201cnot withdrawing cash,\u201d \u201cwithdrawing across months,\u201d or \u201cwithdrawing across years\u201d\u2014is completely gone.<\/p>\n Today, we\u2019ll explain the changes, common misconceptions, risks, and compliance strategies related to this new policy in plain, easy-to-understand language.<\/p>","protected":false},"author":10,"featured_media":17702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,17,18,15,64],"tags":[1646,238],"class_list":["post-17701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guide","category-allguide","category-recomguide","category-industry","category-gf-tax-compliance","tag-1646","tag-238"],"yoast_head":"\n<\/figure>\n\n\n\n
I. Comparison of Old and New Rules: Taxes Are Withheld Before the Money Is Even Received<\/h1>\n\n\n\n
II. The Most Common Pitfalls for Top Streamers: 3 Fatal Mistakes<\/h1>\n\n\n\n
III. Potential Risks of Non-Compliant Operations<\/h1>\n\n\n\n
IV. 3 Compliance Solutions for Receiving Payments: A Must-Read for Streamers and Influencers<\/h1>\n\n\n\n
V. What Should Live Streamers and Influencers Do Now?<\/h1>\n\n\n\n
put at the end<\/h1>\n\n\n\n