Income received via social media to be subject to tax

DAILY SABAH
ISTANBUL
Published 05.08.2016 21:15

Social media influencers and advertisers who receive income by promoting products on Twitter, Instagram and Facebook will, from now on, be subject to tax. Presumably, 15 percent of the income received via social media will be paid in the form of withholding tax.

An important step is on its way regarding the taxation of advertisement and promotion services via the internet. According to Ahmet Kıvanç's news from Habertürk Daily, social media influencers who earn thousands of lira everyday by promoting products via social media will be subject to tax. Advertisers behind promotion activities and mediator companies will be held responsible for taxation as well.

Currently, product placements and advertisements on social media tools such as Twitter, Instagram and Facebook are not taxable. Through a law amendment, the Cabinet will be given authority to receive tax from the aforementioned parties and determine its amount.

Regardless of the facts that the payees are taxpayers; payers or mediators are obliged to withhold taxes; the subject of the payment is a merchandise or service trade; or the transaction happens in an electronic environment, the Cabinet will impose an obligation to withhold taxes upon the parties and mediators of the aforementioned transactions.

The taxation is expected to be in the form of withholding tax. The Cabinet will determine a tax rate between 0 and 25 percent. The expected rate is around 15 percent.

Share on Facebook Share on Twitter