China’s tax authority fined PDD Holdings’ subsidiary, Shanghai Xunmeng Information Technology, for failing to report required tax information related to its platform operations for Q3 2025.

The company was fined 100,000 yuan (US$14,400) after ignoring notices to rectify the issue.

The fine follows reports of a clash between PDD employees and regulators last month, which led to staff dismissals and an investigation by multiple government agencies.

Updated Chinese tax regulations, enforced since October, require online platforms to report revenue, refunds, ad income, and bank details quarterly to combat tax evasion.

PDD has previously been summoned over its “refund-only” policy, which regulators said was misused.

🔗 Source: South China Morning Post

Recent PDD developments