From entertainment to sports, from shows to games, video live streaming has almost injected new vitality into a large number of industries on its own.

Some people see 2016 as the "first year of China's online live streaming", and it's not a bad thing to say. But only those standing at the wind can see that there are more "risks" coexisting with opportunities. There are ups and downs in the wind and waves.

In fact, since 2014, O2O's Internet plus entrepreneurship model has swept China. With the emergence of more and more sharing economic models, how to avoid taxes has become an urgent issue for these companies. However, due to historical reasons and the efficiency of government decision-making, the current tax system design in China does not consider the interests of freelancers much, resulting in many tax difficulties for the sharing economy in China.

Which live streaming platform that has just established its foothold is not constantly struggling with the wind and waves like walking on thin ice and trembling with fear? Avoid being hit on the beach by front, back, large, or even small waves in the sewer at any time.

How can we secure victory in the era of "live streaming for all"? Some things can be predicted.

Because whether you are a dark horse who has just entered the live streaming industry or a unicorn of the future, you are all turning pale at the invisible red line - taxation.

Because, without paying taxes, it's tragic; Pay taxes, suffer. After all, we all need to adhere to the legal framework in order to play happily

I have been wandering around Zhihu for a long time, and a question made my adrenaline surge in an instant:

Is the anchor platform obligated to withhold and pay personal income tax on labor remuneration to the anchor? Similar to YY live streaming platform or Douyu. (That's a good question!)

I solemnly answer:

Yes, it is the responsibility of the anchor platform to withhold and pay the personal income tax on the anchor's labor remuneration. Currently, the anchor market is still in the shuffle stage, and many platforms do not have the ability to withhold and pay personal income tax. For example, for many platforms, there is no energy or capital to assist the anchor in withholding and paying personal income tax in the early stage of market development, and there is also a concern that the anchor will turn to another company for less income from paying personal income tax. Alternatively, some mature anchor platforms may deduct 8-1% from the anchor's income At around 1 point, as a platform intermediary fee (excluding personal income tax withheld and paid), everyone's current focus is closely on the competition for immediate benefits and market resources, without a calm view of the healthy development of the platform. “

——Perhaps you finish reading in one breath and feel like you're in the clouds, but you still start sweating all over. Simply put, if it's about paying taxes, the platform is struggling.

Currently, there are generally three ways for broadcasters and live streaming platforms to collaborate:

The first type is that some anchors directly sign contracts with the platform;

The second type is the cooperation between the platform and the brokerage company, where the brokerage company coordinates the live broadcast with the anchor;

The third type is for ordinary people to directly use live streaming software for live streaming.

The top anchors of live streaming platforms usually sign contracts directly with the platform, and the income earned by the anchors is based on salary income, which should be taxed at a rate of 3% to 45% and withheld and paid by the platform. For example, if A's online celebrity earns 100000 yuan in the current month and the platform distributes it according to the national individual income tax rate, 45% of the online celebrity should be deducted, which means 29920 yuan. In the end, the money received by the online celebrity is only 70080 yuan.

Our country's tax policy is that income earners pay taxes, and live streaming is similar to online transactions. If transactions occur on live streaming platforms, they must pay taxes, "said a professor at the School of Taxation at Central University of Finance and Economics. There are many new trading methods emerging on the internet now, and the introduction of policies requires a better understanding of the situation. Generally, the State Administration of Taxation will only issue relevant policies after a certain scale is formed. However, for live streaming transactions mainly using virtual currency rewards, taxes can still be levied according to the principles of online transactions.

Some people in charge of the live broadcast platform believe that many platform anchors' income is withdrawn through their own Alipay and WeChat, so there is no need to withhold and pay personal income tax for the anchors. In response, a professor from the University of Finance and Economics stated that general taxation starts from the source of income generated. Although the target of taxation is the broadcaster who receives the income, the income generated on the platform, no matter how it is withdrawn, should be withheld and paid by the platform.

Although the platform is struggling in the heart, if it wants to consider long-term development, the tax red line must not be touched. If there is a lucky mentality of tax evasion, it not only affects the development of the platform, but also violates tax laws, and the consequences will be very serious!

The sudden popularity of live streaming platforms has also attracted the attention of tax authorities to the non-standard tax behavior of live streaming platforms.

Firstly, let's analyze the current operating mode and some tax risks of the B2B/B2C/C2C platform:

1. In the initial stage, it was a matchmaking mode

The platform only matches customers and service providers for transactions, and some platforms provide certain subsidies, while the platform records transaction information; After providing services to customers, service providers directly charge service fees from customers.

2. Complex management mode

Customers place orders through the platform, and the service fee is paid to the platform first, which may result in obtaining invoices from the platform;

The platform collects funds from customers and pays them to service providers;

Service providers provide services to customers and collect service fees from the platform;

As long as it involves the service provider obtaining income through the platform, the platform is a withholding agent and must assist the service provider in withholding and paying personal income tax. (Please refer to the Individual Income Tax Law of the People's Republic of China)

Article 8: Individual income tax shall be levied on the income earner as the taxpayer, and the unit or individual paying the income shall be the withholding agent. If an individual's income exceeds the amount specified by the State Council, or if there are no withholding agents for income from wages or salaries obtained in two or more places, or if there are other circumstances specified by the State Council, the taxpayer shall handle tax declarations in accordance with national regulations. The withholding agent shall handle full withholding declaration for all employees in accordance with national regulations.

The service provider obtains profits from the platform. As a withholding agent, the platform has the responsibility to declare in full in accordance with national individual income tax regulations. Some platforms like to deceive themselves with the slogan of collecting and paying on behalf of others. The government and tax bureau are not fools. Please first study the relevant regulations on collection and payment on behalf of others. Ordinary enterprises are not legally allowed to engage in collection and payment services (collection and payment services are within the scope of business allowed by banks and financial companies).

Experts have said:

Firstly, it depends on whether the live streaming platform has any withholding and payment tasks? Is the platform the payer of internet celebrity anchor funds? If it is the payer, there is a withholding obligation. For example, if the funds are transferred to the platform's account, the income of internet celebrities is considered paid by the platform; There are currently three types of platform anchors: the first type is salary, and rewards are based on platform income; The second type is to transfer money to the personal account of internet celebrities, who should pay on their own; The third type is that the income of internet celebrities is first transferred to the platform, and the funds are then distributed to the anchor from the platform. The platform should fulfill the obligation of withholding and paying the anchor's personal income tax.

——Wang Dongsheng, President of China Taxation Network Tax Agent Firm

Interim Measures for Referencing Individual Income Tax Withholding and Payment

Article 5: When withholding agents pay taxable income to individuals, regardless of whether the taxpayer is a member of their own unit or not, they must withhold and pay the personal income tax they should pay. The payments mentioned in the preceding paragraph include cash payments, remittance payments, transfer payments, and payments in the form of securities, physical objects, and other forms.

Management Measures for Payment Services of Non Financial Institutions

Article 3: Non financial institutions providing payment services shall obtain a "Payment Business License" in accordance with the provisions of these Measures and become payment institutions. Payment institutions shall accept the supervision and management of the People's Bank of China in accordance with the law.

Without the approval of the People's Bank of China, no non-financial institution or individual shall engage in or engage in payment business in disguised form

——To be honest, if you don't pay taxes, it's miserable.

The emergence of online live streaming platforms as a new form of media has triggered a communication revolution, while also making the fan economy generated by celebrity IPs measurable. As of June this year, the penetration rate of live streaming apps has increased by nearly 50% compared to last year, and the speed and amount of capital injection are beyond imagination.

Regardless of whether this trend can reshape our social way, missing it is a pity. As a broadcaster platform, we have gracefully crossed the barrier of "having the responsibility to withhold and pay personal income tax on broadcaster labor remuneration" at this stage?

Is the law of achieving peace and harmony in the world a responsibility for the Tathagata or for the Qing?

have Easy Finance and Taxation - Jieshuibao provides professional and mature finance and taxation solutions for the anchor platform!

At present, we have cooperated with anchor platforms such as Douyu TV, Liujianfang, PLU, Yiheng Media, and anchor brokerage companies. This not only improves and solves the tax legal issues arising from the anchor platform, but also allows the anchor to avoid high tax losses and achieve a win-win situation!

Of course, it is necessary to be reasonable and legal, while also preserving strength.

(Please kindly remind platform operators and CFOs to pay attention to the long-term development of the company, refuse to evade taxes, and help broadcasters avoid taxes reasonably in order to completely solve the platform's tax risks.)