Three Departments Regulate Matters on Administrative Penalties for Tax-related Information Reporting by Internet Platform Enterprises

The State Taxation Administration (STA) recently issued the Announcement on Relevant Matters Concerning the Administrative Penalties for Tax-related Information Reporting by Internet Platform Enterprises (the "Announcement"), with effect from the date of issuance.

The Announcement, focusing on three aspects, namely, "applicable circumstances, penalty authorities, and penalty measures", provides the detailed penalty measures against internet platform enterprises with illegal acts. For internet platform enterprises that are ordered to suspend business operation for rectification, the tax authorities will adopt a series of measures: (1) restricting their invoicing capacity by means of suspending invoice collection and reducing invoice quotas, and issuing risk alerts when other enterprises issue invoices to them; (2) disclosing the illegal acts and penalty decisions of such internet platform enterprises via such channels as official websites, news media, and WeChat official accounts; and (3) requesting relevant regulatory authorities to lawfully take appropriate measures against such non-compliant internet platform enterprises as per relevant procedures. In addition, for those enterprises that actively carry out rectification during the business suspension period and complete tax-related information reporting in compliance with laws and regulations, relevant penalty measures may be lifted in a timely manner upon confirmation by the tax authorities.



(Source: https://fgk.chinatax.gov.cn/zcfgk/c100012/c5243496/content.html)

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