Do the profits deducted by Meituan from the merchants need to be paid to the local tax authorities?

The profits deducted by Meituan from the merchants need to be paid to the local tax authorities.

As a third-party platform, Meituan's income mainly comes from the deduction fees charged to merchants as an intermediary service provider, which belongs to service income and needs to pay value-added tax and business tax according to China's tax laws and regulations. In addition, Meituan also needs to deduct sales expenses, wages and other expenses, and calculate the net profit before paying corporate income tax.

See the tax laws and regulations of the local tax authorities according to the specific situation. Possible taxes include value-added tax, business tax, income tax, urban maintenance and construction tax, education surcharge, etc. Generally speaking, if the platform service provider and the merchant are in the same area, the platform will pay taxes according to the local tax laws. Therefore, it is a practice for the US Mission to pay taxes to the tax authorities as a platform.