Tax on income earned from social media platforms
Did you know that there will be a tax on social media influencers?
The income received from blogging, advertising & activities performed on social media platforms will be taxed.
Payments in exchange for services performed by social media influencers can take the form of money, goods or services.
Social media influencers will not be required to declare non-monetary benefits if the following two conditions are met:
(a) The product/service is given to them on an ad-hoc basis for one-off consumption or testing; and
(b) The value of each product/service received does not exceed $100.
If the value of the product/service exceeds $100, the full value of the benefit should be declared and be subjected to tax.
The $100 threshold does not apply to non-monetary benefits received by social media influencers. This is only applicable if it is a recurring supply provided over a period of time.
Q&A for Tax on Social Media Influencers
Here are some questions and answers that you might be interested in.
Q: I am writing out of passion/as a hobby and do not receive much income from it. However, I receive sponsorship products occasionally. Am I considered to be carrying on a trade or business?
A: In general, blogging as a hobby is not considered a business. However, if blogging activities are performed repeatedly or habitually in exchange for monetary
and non-monetary benefits such that the annual net business income earned is more than $6,000, this income should be declared as self-employed income.
Q: If I work full-time as a salaried employee and part-time as a blogger/youtuber, will the income earned on part-time basis be subject to tax?
A: Yes. The income you have received from blogging / advertising will be assessed as self-employed income if you are carrying on a trade or business as a
blogger or YouTuber.
Q: I received a blogging fee as well as sample products/services for my review. Are these sample products/services received taxable?
A: Yes. However, you are not required to declare the benefit if the sample product/service was provided to you on an ad-hoc basis for one-off consumption or
testing; and its value does not exceed $100. Where the value exceeds $100, the full value should be declared.
If you are interested to find out more, you can find more details and questions here.