The Ministry of Finance released comprehensive regulations on the withholding and collection of taxes on interest income from internet lending platforms, effective 1 July 2026. The rules define calculation methods, reporting frequencies, penalty mechanisms, and documentation retention requirements to strengthen tax compliance in the digital credit market. The regulation applies to all domestic and offshore platforms facilitating consumer loans via digital channels, requiring monthly electronic filings and five-year record retention. Taxpayers receive a six-month transition period to adapt their systems, after which full enforcement begins, with penalties including fixed fines and surcharge charges.
Key Takeaways
- Effective Date: 1 July 2026 for all platform operators
- Withholding Rate: 10 percent on interest payments
- Reporting Obligations: Monthly electronic statements to the tax authority
Source: Read Original Announcement