China’s leading conglomerate, Tencent, plans to launch a variety of solutions that are based on distributed ledger technology for both ride-sharing and taxation into the blockchain in the foreseeable future. In this venture, Tencent has decided to partner with local and government developers.
The company has recently signed an agreement with the Shenzhen National Taxation Bureau (SNTB) for the establishment of an Intelligent Tax Innovation Laboratory. This is expected to provide the municipality with research data based on blockchain to invoice applications.
This particular platform is also expected to be designed to treat invoice circulation in a new manner, using invoicing logic. This invoicing logic, it is believed, will streamline taxation processes while also integrating with external applications like Wechat.
The SNTB pioneered digital innovations in China’s economic sector by greatly accelerating the process of paperless taxation and the appropriate use of markets that are internet linked.
The blockchain-based digital invoicing system has some unique features like the ability to trace a whole process and provide non-disruptive information. This would be consistent with invoice logic, would eliminate false invoices while also improving the process of invoice supervision.
Since Shenzhen has grown economically in the last two decades, the move has been welcomed by state officials, particularly the development of billing initiatives like Wechat Billing, Wechat Taxation, and Wechat Simple Penalties that provide more intelligent and diverse service platforms.
As the blockchain-based platform becomes operational, streamlining the ecosystem for the collection of taxation data will be easier, feel most officials. The platform will also support forecasting of tax revenues, decision-making on taxation policies and issues and enhance prevention of risk and its control.
More Chinese regulation
China has recently adopted a stringent policy for decentralizing ride-sharing on the blockchain in tandem with its strict policies for information control. Tencent will also support Kuaidi Dache, an app that provides blockchain-based ride-sharing services with a view to accelerating blockchain technology use in China.