Are promotion rewards subject to taxes?

Promotion rewards are subject to personal income tax. Effective 00:00 on January 1, 2023, Alibaba Cloud canceled the preferential tax policy for Alibaba Cloud Ambassadors. You are personally responsible for taxes on commissions and other promotional incentives. In accordance with the Individual Income Tax Law of the People's Republic of China and other relevant tax laws, Alibaba Cloud withholds and pays these taxes on your behalf. As confirmed with the Hangzhou tax authorities, value-added tax (VAT) and surcharges for individuals are calculated according to the following rules.

Withheld taxes are deducted from your withdrawal amount. The following table describes how taxes are calculated. Note: The actual tax amount withheld is determined by the tax policies in effect at the time of withholding.

For individual Alibaba Cloud Ambassadors, taxes are deducted from withdrawals as described above. Enterprise Alibaba Cloud Ambassadors must provide a VAT invoice to be exempt from tax withholding on withdrawals. Any adjustments to the exemption period will be announced on the official Alibaba Cloud Ambassador website: https://dashi.aliyun.com/