Why do online celebrities have to pay taxes?

Legal analysis: individuals set up live broadcast studios to broadcast live through live broadcast platforms;

Forming a labor service cooperation relationship with the platform is a business model generally adopted by stars and big anchors at present. It is mainly a sole proprietorship enterprise, and the income obtained is subject to personal income tax according to the personal business income. Low tax rate and simple business model are also the favorite tax saving methods adopted by major enterprises. The taxes involved mainly include: personal business income tax, value-added tax and additional tax.

Individuals and brokerage companies sign a contract to broadcast live through the live broadcast platform;

It is the most commonly used working mode for anchors at present. There is no direct connection between the anchor and the platform, and the tax payment is mainly related to the contract form signed by the brokerage company. If a labor contract is signed, the brokerage company needs to withhold the anchor's personal income tax in advance according to the salary income; If a labor service agreement is signed, the brokerage company needs to withhold and remit the anchor's personal income tax according to the income from labor remuneration. Also, the anchor who calculates a tax according to the income tax on labor remuneration also needs to pay value-added tax and additional tax.

Legal basis: Article 1 of the Individual Income Tax Law of People's Republic of China (PRC) is a resident individual who has or has no domicile in China and has lived in China for a total of 183 days in a tax year. Individual income tax shall be paid in accordance with the provisions of this Law on income obtained by individual residents from inside and outside China. Individuals who have neither domicile nor residence in China, or who have lived in China for less than 183 days in a tax year, are non-resident individuals. Income obtained by non-resident individuals from China shall be subject to individual income tax in accordance with the provisions of this Law. The tax year starts from Gregorian calendar 1 month 1 day and ends on1February 3 1 day.