Viya and the Growing Scrutiny of Tax Obligations for Live-Streamers in Hangzhou

Viya and Tax Obligations: The New Normal for Live-Streamers

In recent times, China has witnessed a significant crackdown on tax evasion, particularly among internet influencers engaging in live-streaming. The State Taxation Administration has revealed three high-profile cases involving hefty fines for tax evaders from 2020 to 2023.

Recent Developments in Tax Enforcement

• Sichuan province fined a celebrity 14.31 million yuan (US$1.98 million) for underreporting taxes by 8.05 million yuan.
• Liaoning saw an individual penalized nearly double for 7.35 million yuan of unpaid taxes.
• East China’s Zhejiang imposed a fine of 2.47 million yuan on a live-streaming host.

These actions exemplify a growing trend as local governments tackle shrinking fiscal revenues, primarily caused by diminishing real estate profits and corporate contributions.

Financial Strain and Tax Revenue Challenges

As the country grapples with a downturn, local authorities are compelled to enhance tax revenue. During the first nine months of 2023, they reported an overwhelming 1.04 trillion yuan in bond interest payments, indicating severe financial strain.

With the implications of these rulings becoming clearer, the Guangdong Society of Reform has indicated that the threat of more crackdowns may escalate.

Conclusion: Future of Live-Streaming and Tax Compliance

The rising tax obligations for influencers such as Viya signify a shift toward stricter compliance in the booming live-streaming sector of China. As local governments strive to boost revenue amidst unfolding economic challenges, only time will reveal the long-term impact on business confidence and the sustainability of this dynamic industry.