SHEIN Launches Income Tax Settlement Service, Allowing Sellers to Opt for Platform Withholding

Ebrun Original: Recently, some SHEIN sellers reported receiving the platform's "Income Tax Settlement Service Launch Notice." The income tax settlement service allows sellers to opt for the platform to handle unified income tax settlements with tax authorities on their behalf, eliminating the need for duplicate reporting and tax payments. The tax amount will be deducted from subsequent payment settlements.

Currently, the platform has not specified the proportion of taxes to be withheld. Details regarding the tax payment timeline, operational guidelines, and settlement plan will be announced in follow-up notices.

Sellers can check their backend notifications to determine if they are eligible for this service. Eligible sellers may also choose to decline the service and file tax declarations independently with tax authorities. In accordance with regulations such as the "State Taxation Administration Announcement on Optimizing Corporate Income Tax Prepayment Declarations," the platform will report basic information and export-related sales revenue details to tax authorities.

In fact, platform-based tax withholding services are not without precedent. For example, Amazon previously announced that, starting January 1, 2026, it will withhold value-added tax and income tax from local sellers' sales in Mexico as required by Mexican tax law.

In June of last year, the State Council issued the "Regulations on Tax-Related Information Reporting by Internet Platform Enterprises," and the State Taxation Administration released the "Announcement on Matters Related to Tax Information Reporting by Internet Platform Enterprises," clarifying that internet platforms must report identity and income information of platform operators and practitioners to tax authorities. Subsequently, in October, major platforms including SHEIN submitted their first reports on the identity information of platform operators and practitioners, as well as income data for the third quarter of 2025. They also committed to reporting operator identity information and previous quarter income details by the end of the month following each quarter (January, April, July, October).

Against the backdrop of increasing importance placed on tax compliance, SHEIN's launch of the income tax settlement service sets a precedent for domestic cross-border e-commerce platforms exploring tax withholding services.