Understanding Influencer Tax Regulation: Key Insights for 2024

Influencers are individuals who have gained a large following on social media platforms and have an impact on their followers. They engage in activities such as content creation, brand collaborations, and social media management. Tax regulation is an important issue for influencers.

To briefly answer the question of whether influencers are required to pay taxes: although influencers are exempt from income tax as long as their income does not exceed 3,000,000 TL in 2024, they are still required to pay 15% of their earnings as tax. However, influencers are granted a tax advantage for income up to 3,000,000 TL. Within this scope, the income earned by influencers up to 3,000,000 TL is exempt from income tax.

What is Influencer Tax Regulation?

• According to the Income Tax Communiqué, the earnings of social content creators who share text, images, audio, or video content through social network providers on the internet, as well as those who develop applications for mobile devices such as smartphones or tablets, are exempt from income tax.

• Influencers who wish to be exempt must apply to the tax office in their place of residence to obtain an “Exemption Certificate.” With this certificate, they must open an account in a bank established in Turkey and collect all income through this bank(s).

• They must be income tax payers. However, limited liability companies and joint-stock companies, which are corporate tax payers other than sole proprietorships, cannot benefit from this exemption.
  

Conditions for Benefiting from Influencer Tax Exemption

• Only income up to 3,000,000 TL is exempt.

• Real persons who share text, images, audio, or video content on the internet or develop applications for mobile devices can benefit from this exemption.

• You must apply to the tax office in your place of residence to obtain an exemption certificate.

• With the exemption certificate, you must open an account in a bank established in Turkey and collect all income through this account.

• You must notify the tax office of the bank accounts you have opened.

• You must be an income tax payer. Sole proprietorships must be corporate tax payers.

Influencers who meet these conditions will be exempt from income tax on earnings up to 3,000,000 TL in 2024. The bank will automatically deduct 15% of your earnings based on the exemption certificate and pay it to the tax office on your behalf. You do not need to file a monthly tax return or keep books.

Advantages of Influencer Tax

• Influencers benefit from the tax regulation by being exempt from bookkeeping and temporary tax return obligations.

• Payments are made to the tax office by the bank with a 15% deduction. There is no obligation to file a monthly tax return or keep books.

• Being exempt from income tax results in a lower tax liability.

What is an Influencer Tax Exemption Certificate?

An influencer exemption certificate is a document that individuals who earn income through social media platforms apply for at the tax office in their place of residence to request exemption from income tax. The tax office checks whether the applicant’s activity falls within the scope of the exemption. If the activity is within the scope of the exemption, the influencer can obtain an exemption certificate and open a bank account with this certificate.

Influencer Tax Payment Method

Under the influencer tax regulation, influencers who obtain an Exemption Certificate must open an account in a bank established in Turkey and transfer all their income to this account. The bank information must be reported to the tax office within 1 month after opening the bank account. The bank will deduct 15% of the income without the influencer’s instruction and pay it to the tax office. Social media income should only be received through these bank accounts. Otherwise, the exemption may be revoked.

Income Exceeding the Exemption Limit

The exemption limit for influencer tax regulation is 3,000,000 TL. If the income earned within a calendar year exceeds this amount, the excess must be reported to the tax office through an income declaration.

Receiving Payments in Foreign Currency

When payments are received in foreign currencies such as dollars or euros into bank accounts opened under the exemption, the foreign currency amounts are calculated based on their Turkish Lira equivalents.

Situation of Foreign Influencers

The influencer tax regulation applies to both limited taxpayers who reside in Turkey for less than 6 months and full taxpayers. Therefore, foreign influencers are also required to tax their earnings.

Opting Out of the Exemption

Influencers who wish to opt out of the exemption can notify their respective tax office. However, once they opt out, they are required to submit an annual income tax return and have their books certified.

Penalties for Violations

Influencers who violate the exemption conditions may face tax loss penalties and late payment interest for under-accrued taxes. Therefore, it is important to pay attention to tax regulations.