Tax Authority: Influencer Business Tax Guidance Period Ends June 30, Urges Registration

(Central News Agency, Taipei, June 8) The guidance period for levying business tax on influencers will end on June 30 this year. The National Taxation Bureau of the Southern District, Ministry of Finance, reminded today that eligible influencers must proactively register for tax registration and file business tax payments within the period. After the guidance period ends, if reported or investigated by the tax bureau or investigators designated by the Ministry of Finance, back taxes and penalties will be imposed according to relevant tax laws.

The Ministry of Finance issued the "Operational Guidelines for Levying Business Tax on Individuals Regularly Creating Content or Sharing Information Online" and the "Operational Guidelines for Levying Individual Income Tax on Individuals Creating Content or Sharing Information Online" last year. These guidelines stipulate a guidance period ending June 30 this year, during which compliance will exempt individuals from penalties under relevant tax laws.

The National Taxation Bureau of the Southern District explained at a regular press conference that if an influencer has a physical fixed business establishment in Taiwan, operates under a business sign, employs personnel to handle sales, or has monthly sales of goods reaching NT$100,000 or monthly sales of services reaching NT$50,000 through online channels, they must register for tax and pay business tax.

For influencers not required to register for business tax, they must still pay individual income tax according to the law. The bureau explained that for resident individual influencers, income from "Taiwan-sourced influencer income" minus related costs and expenses should be included in the annual total consolidated income for tax filing. For "non-Taiwan-sourced influencer income," after deducting related costs and expenses, the income should be reported as overseas income under the Income Basic Tax Act.

The bureau stated that for non-resident individual influencers, their Taiwan-sourced influencer income will be withheld by the withholding agent at a rate of 20% for professional service income.

The bureau provided an example: Resident influencer A, a domestic resident, shares creations on an overseas platform and earns NT$100,000 in influencer income. Of this, NT$80,000 comes from domestic viewers (100% domestic profit contribution) and NT$20,000 from overseas viewers (50% domestic profit contribution).

The bureau calculated that the Taiwan-sourced income is NT$90,000. Applying the 114th fiscal year expense ratio for professional service income (performer) of 45% (tax exemption of 45%, with the remaining 55% being taxable income), the Taiwan-sourced taxable income is NT$49,500 for consolidated income tax filing. The non-Taiwan-sourced income of NT$5,500 is reported under the Income Basic Tax Act.

The bureau added that from January 1 this year, domestic platforms and overseas platforms with tax registration are withholding agents under the Income Tax Act. When paying Taiwan-sourced influencer income to individual influencers, they must withhold tax, file returns, and issue withholding certificates as required. The bureau urged platforms and individual influencers to proactively file and pay taxes with the tax authorities. (Editor: Lin Kelun) 1150608