Influencers Also Need to File and Pay Business Tax
This new type of online transaction involves four parties: influencers, platforms, advertisers, and viewers. On these platforms, influencers authorize the use of their content (such as videos, graphics, and text, hereafter referred to as “performance services”) to display ads or offer paid services. The platform earns revenue from advertisers or paid viewers (e.g., ad revenue or subscription fees).
When influencers meet certain conditions, such as reaching a specific number of followers or signing a contract with the platform, they receive a portion of this revenue, forming a profit-sharing arrangement for their services.
To clarify the collection of business tax on these emerging online transactions, regulations have been established based on the Business Tax Act and other relevant laws.
Key points are as follows:
1.Criteria for Domestic Influencers to Register for Business Tax
Domestic influencers must register for business tax if they have a fixed business location in Taiwan, a business license, or employ staff to assist with sales, or if their monthly sales from online activities reach the business tax threshold.
2. Classification of Influencer Services and Principles for Tax Collection
The performance services provided by influencers who meet the criteria of a business entity are not considered professional services provided by practitioners or services provided by employees.Business tax should be levied separately on the different business models, such as the revenue platforms receive from advertisers or paid viewers, and the profit-sharing revenue influencers receive from the platforms.
