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Celebrities under tax spotlight
Print Edition
THE State Taxation Administration issued a notice on Saturday on taxation in the entertainment industry.
The notice said it will carry out tax inspections randomly on celebrities and livestreamers and reveal the results to the public in a timely manner. The aim is to hit hard on tax evasion in the entertainment sector.
The move comes after Shanghai tax authorities fined actress Zheng Shuang 299 million yuan (US$46.23 million) for evading taxes last month.
The administration will guide the studios and enterprises set up by celebrities and livestreamers to establish an accounting system in accordance with the laws and regulations.
Those suspected of evading taxes will be given warnings and told to rectify the error.
Celebrities who voluntarily report and promptly correct tax-related issues before the end of 2021 will be given a lighter, mitigated, or exempted punishment.
Those who refuse to cooperate with the investigation and rectification work, the relevant government department and industry association will be asked to assist in the supervision and correction. If the circumstances are serious, they shall be investigated and dealt with strictly.
The notice also said that it was necessary to standardize the management of tax-related incentives in the entertainment field.
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