Ministry of Finance: Influencers, Regardless of Scale, Must Pay Taxes According to Law if Requirements Are Met

Central News Agency

(Central News Agency reporter Lu Yen-tzu, Taipei 6th) In response to the continuous expansion of the influencer economy, the Ministry of Finance last year issued relevant tax regulations. Today, it once again called on influencers, regardless of their scale, to pay taxes according to law if they meet the requirements for business tax and income tax assessment. Influencers who meet the criteria are urged to promptly apply for tax registration and pay business tax or income tax.

Lee Chih-chung, Deputy Director-General of the Taxation Administration, Ministry of Finance, explained at today's regular press conference that the Ministry of Finance on September 10 and December 23 last year respectively stipulated and issued the "Operational Guidelines for Imposing Business Tax on Individuals Regularly Publishing Creations or Sharing Information Online" and the "Operational Guidelines for Imposing Consolidated Income Tax on Individuals Publishing Creations or Sharing Information Online." A guidance period until June 30 this year is provided, during which those who comply with the regulations will be exempt from penalties according to relevant tax laws.

According to the tax regulations, influencers can be divided into two categories, commonly known as "large influencers" and "small influencers." Large influencers refer to those who have a physical fixed business place in Taiwan, possess a business signboard, or employ personnel to assist with sales matters, or conduct sales online where their monthly sales reach the threshold for business tax. This means, as of January 1 last year, sales of goods of NT$100,000 and services of NT$50,000; and before December 31 of the year before last, sales of goods of NT$80,000 and services of NT$40,000.

The Ministry of Finance stated that this type of influencer, in addition to applying for tax registration and paying business tax on various incomes obtained from platforms, should also calculate business income tax according to law. If it is a sole proprietorship or a partnership, business income tax is not levied, but rather it is classified as consolidated income tax for the sole proprietor or partners of the partnership.

As for small influencers, they refer to those who do not meet the requirements for business tax registration. The Ministry of Finance reminds that they should still be subject to consolidated income tax according to relevant regulations, including the Income Tax Act and the Income Basic Tax Act. That is to say, influencers, regardless of their scale, must pay taxes according to law if they meet the requirements for business tax and income tax assessment.

Lee Chih-chung explained that the influencer tax regulations compile and clarify the tax provisions for the emerging transaction model of influencers based on existing tax laws. To enhance influencers' understanding of tax laws, before the regulations were issued, the profit-sharing income obtained by influencers in the emerging transaction model within the assessment period should still be subject to business tax and income tax according to existing tax laws.

According to current tax collection regulations, the assessment period is generally 5 years. Lee Chih-chung added that some influencers have asked why sales from previous years are also subject to tax, rather than the regulations only taking effect after issuance. The reason is that tax law inherently stipulates "transactions are subject to tax." The current administrative rules regulate different types of transactions, and there is no such thing as "previous transactions being forgiven." Otherwise, it would violate tax fairness for other businesses that have paid taxes.

The Ministry of Finance appeals that if influencers, through guidance from the National Taxation Bureau or self-assessment, find that they meet the requirements for tax registration and payment of business tax or income tax, they should promptly apply for tax registration with their local National Taxation Bureau and pay the relevant taxes before the expiration of the penalty-free guidance period. After the guidance period (June 30 this year), if they are reported or investigated by the National Taxation Bureau or personnel designated by the Ministry, they will be subject to supplementary tax and penalties according to relevant tax laws. Influencers are advised to pay attention and protect their own rights. (Edited by: Lin Ke-lun) 1150506

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