China: Adopted Opinions on Further Regulating the Profitable Behaviors of Online Live Broadcasting and Promoting the Healthy Development of the Industry

On 30 March 2022, the Cyberspace Administration of China, the State Administration of Taxation, and the State Administration for Market Regulation issued the "Opinions on Further Regulating the Profitable Behaviors of Online Live Broadcasting and Promoting the Healthy Development of the Industry". The Opinions set forth various obligations for online live broadcasting platforms, especially regarding taxation. Platforms must verify the identity of live broadcasters and report information regarding the identity, username, and earnings of broadcasters to tax authorities every six months. Furthermore, platforms must withhold and pay the income tax of broadcasters, for which the Opinions increase enforcement by enhancing cooperation between state agencies. In addition, platforms must ensure fair competition and protect consumer rights.