Recently, the Chinese authorities have once again introduced a new taxation policy. Starting from October 1st, delivery riders, ride-hailing drivers, live streamers, and other individuals who earn income through internet platforms will have their service income tax deducted and paid by the platforms. Scholars point out that implementing this policy during an economic downturn and when people’s incomes are generally decreasing will inevitably increase the living pressure on grassroots communities, further fueling concerns about the authorities’ financial predicament.
Following the “mandatory social insurance”, mainland China’s delivery riders, ride-hailing drivers, and others in similar industries will have their personal income tax deducted and paid by the platforms they work for starting from October 1st. According to the announcement No. 16 of 2025 issued by the State Administration of Taxation of the Chinese Communist Party on June 26, 2025, there will be a significant adjustment in the taxation method for internet platform employees. Going forward, platform companies will be responsible for deducting and paying personal income tax on behalf of workers, instead of individuals filing taxes themselves.
According to reports from Titaimedia, on September 26, “Fengniao Crowdsourcing” issued a notice stating that personal income tax on service income earned by employees will be deducted and paid monthly by the platform. Many riders shared screenshots of the Fengniao Crowdsourcing notice on the internet, and the news quickly ignited discussions in the comment section.
Delivery riders expressed their grievances, with many saying, “We work hard to deliver orders all month, making only a few thousand yuan, and now even that money will be deducted.” Others lamented that mandatory social insurance payments have already put a huge burden on them, and with the addition of taxes, it’s becoming impossible to make ends meet. Some riders helplessly stated that after deducting expenses for fuel, vehicle maintenance, and platform commissions, there is hardly any income left, feeling like the government is pushing them to a dead-end.
In late September, social media platforms like Douyin and WeChat Video were filled with various expressions of anger and helplessness. Netizens widely questioned why the authorities only focus on taxing ordinary people, while turning a blind eye to tax evasion by large corporations. A ride-hailing driver commented, “Even if I make a few thousand yuan a month, I still have to pay taxes. Meanwhile, certain companies rake in hundreds of billions in profits and can legally evade taxes.” Some sarcastically remarked, “They are really precise in harvesting the ‘leeks,’ and no one can escape.” A NetEase user said, “If even riders have to pay taxes, it shows they (the authorities) are really in dire straits.”
Some netizens expressed deep concern about their livelihoods, saying, “We have rent to pay, children to support, and now even the money for meals is being taken away.” Others stated, “Earn a few bucks from one order, pay taxes and social insurance, might as well not work.” Some comments were more cutting, questioning if the government is trying to drive them to the streets.
Mr. Cheng, a scholar from Gansu, pointed out in an interview that the introduction of mandatory taxation policies by the authorities is closely related to financial deficits. He told reporters, “The group of internet platform employees is massive, covering nearly a billion people in delivery, ride-hailing, and live streaming services. Deducing and paying taxes by the platform means that the fiscal department can more effectively target tax sources. In a situation of severe fiscal deficits and mounting local debts, this will naturally be prioritized. Even civil servants may be affected in the future.”
Mr. Cheng further revealed, “I heard that some benefits for civil servants have been canceled, now they are targeting large state-owned enterprises and institutions. A friend’s daughter who was a department supervisor in a large state-owned enterprise used to rent a place separately from her parents, but recently moved back in with them just to save on rent.”
An expert from Beijing pointed out that the living conditions of the internet platform employment group have long been neglected. They mostly lack stable security but are subjected to intense labor. Against the backdrop of a continuing economic downturn, heavier tax burdens may not only accelerate unemployment but also intensify social conflicts. Mr. Liu, a Shenzhen scholar who has long studied labor issues, said, “This is a desperate policy. While the finance ministry may collect a bit more tax in the short term, the long-term social costs will be higher.”
As the implementation date of October 1st approaches, the controversy surrounding internet platforms deducting and paying personal income tax continues to escalate.
Since September 1st, the authorities have increased efforts to enforce social insurance contributions from all enterprises and individual businesses, requiring full and unified collection as per regulations by the tax department. This move has sparked widespread controversy, with many small and medium-sized enterprises complaining of being unable to afford the heavy burden and some individual businesses stating, “Earning little and still having to make up the difference.” Now, netizens are worried that following mandatory social insurance, taxing delivery riders will become a new social focus, potentially triggering more widespread collective dissatisfaction and retaliatory social events.