Major Update for Digital Platforms: Tax Transparency is the New Reality
The digital economy landscape is changing markedly.
With over 22+ jurisdictions now adopting the OECD's Model Reporting Rules for Digital Platforms (MRR), and China's State Council Order No. 810, platform operators worldwide are encountering unprecedented reporting obligations.
What's happening
The OECD's MRR requires platforms (Airbnb, Uber, TaskRabbit, etc.) to collect and report detailed seller data annually by 31 January.
China has increased the requirements with quarterly reporting beginning in October 2025.
Both frameworks focus on accommodation rentals, ride-sharing, personal services, and e-commerce.
The China difference
Unlike the annual OECD standard, China's new rules demand quarterly submissions and extend directly to foreign platforms serving Chinese users.
They've also integrated withholding obligations for both Individual Income Tax and VAT.
Why this matters for your business
- Platform Operators: Review your due diligence processes - non-compliance results in hefty fines and possible criminal sanctions.
- Sellers and Service Providers: Increased tax transparency has arrived. Make sure your records are accurate and complete.
- Global Businesses: If you operate in China or serve Chinese users, your compliance framework requires immediate review.
The message is unmistakably clear: the age of hiding digital economy taxes is gone.
Governments around the world are calling for transparency, and businesses must adapt swiftly to remain compliant.
Are you ready for this new regulatory landscape?
See further here: https://lnkd.in/gnvhEmbj.
Get In Touch
For more information please contact Michael Velten.
michael@veltenadvisors.com
+6590687547
37 Ann Siang Rd, Singapore 069715
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