influencer taxation

Taxation is something every social media icon should be aware and nothing to be left unattended. The last decade there has been an explosion of influencers and icons with some of them focusing totally in the growth of popularity and income from sponsored content.

According to speculations the influencer marketing is expected to become a €15 Billion business by 2022. Influencers are considered entrepreneurs who are building businesses and multi-million-dollar income. These large income amounts have caught the attention of the Tax authorities internationally. The future is expected to bring radical changes in the taxation and income inspection of such individuals.

 

Influencer Taxation.

If you are considered an influencer then you most probably work as an independent contractor. That means you charge companies as self-employed individual. Under this status you are obliged to pay income tax as self-employed in your country of origin. These large amounts of paid sums have caught the attention of the authorities and earlier this year the Competition and Markets Authority of the UK published a report for this matter. According to the report, any form of reward, including money, gifts, free services or even product freebies is subject to taxable income.

Although the influencer taxation cannot be fully controlled by the authorities worldwide, the income tax inspectors are becoming more and more suspicious and investigating more influencer cases every day. Influencers can be spotted and investigated any time for their income at the time being.

Our Tax consultants strongly advise that any high paid influencer or entrepreneur, plans and declare all income to avoid any future complications and inspections from the authorities.

 

The secure tax solution.

KTC Tax advisory experts have been working with international entrepreneurs for many years advising and planning on worldwide tax matters.

Cyprus has a very competitive tax regime allowing self-employed professionals, entrepreneurs like influencers or freelancers, to use the country as a home of operations and benefit on their taxable income. The ideal solution for these entrepreneurs is the formation of a Cyprus based company and work as employed person under the registered company. This solution is considered the most valuable for high earners. It is estimated that on approximately €100.000 income the tax implications would be as low as 15% on the total income.

This solution not only allows any high paid individual to benefit from various tax advantages of Cyprus but also to be taxed on their worldwide income, without the need to be based exclusively in the island of Cyprus.

 

Becoming a Cyprus Tax resident under a Cyprus registered company.

A Cyprus tax resident is taxed on all the income from sources within or out of Cyprus.

The Cyprus company provides many tax advantages and exemptions under an attractive regime within the European Union.

50% of remuneration from employment in Cyprus is exempted from income tax for the first 10 years. This rule applies for individuals that were not tax residents before the commencement of the employment and provided that the annual remuneration exceeds €100.000.

An alternative of 20% exemption is also valid for 3 years if employee annual remuneration is less than €100.000

Learn everything for Cyprus Tax resident here. How international high earners benefit on their income.

 

Cyprus company advantages.

Start operating in a very short time under Cyprus regime and benefit from the significant tax advantages of Cyprus corporate tax. The company formation procedure is fast and easy if you have the proper professional guidance

  • Register your company without visiting Cyprus
  • Get Cyprus Tax id number and benefit from the low-income tax
  • Operate worldwide with your Cyprus Company
  • Company bank account in 10-15 days
  • Fast and easy process. No fuss. Sent the paperwork and we do the rest.

 

Learn everything you need to know about Cyprus Company Formation and the Tax advantages off Cyprus. One solution vehicle for international operations and taxation.

 

Tax write offs.

Having a Cyprus Registered company will allow you to be eligible on various exemptions and deductions from Tax purposes. Daily operational costs can be declared as company expenses. Some of them are.

  • Phone for work.
  • Software purchasing or paid professionals for video or photo edit.
  • Office supplies.
  • Professional equipment such as personal computers and cameras.
  • Website and digital marketing expenses.
  • Gas and commute expenses including airline tickets.
  • Car maintenance and insurance.
  • Company office rent and bills.
  • Entertainment expenses. Dinner with a customer.
  • Travel costs for business purposes.

 

If you require any assistance regarding you tax plan schedule now a teleconference or get in touch with us on email.