THURSDAY, March 28, 2024
nationthailand

Bloggers in S'pore told to declare sponsored items

Bloggers in S'pore told to declare sponsored items

SINGAPORE - Sponsored trips to Hong Kong Disneyland, an invitation to family and friends for a meal tasting session or a package of the latest beauty items.

These are some of the products or services that bloggers or "social media influencers" often receive from companies keen for them to spread the word about their products.
Now the taxman has come knocking on their doors to remind them that such "non-monetary benefits in kind" must be declared as part of their income by next month.
"Sponsorships of products or services received in return for writing or reviewing the sponsors' products may be taxable and must be declared," the Inland Revenue Authority of Singapore (Iras) wrote in a letter to bloggers earlier this month.
But some are protesting that they had no inkling of this requirement.
Popular blogger Wendy Cheng, also known as Xiaxue, said: "It may be hard to put a value on certain things. If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it?"
Cheng said her social media agency often receives products that it did not ask for nor has a need for, and it would be unfair to be expected to pay tax on them.
According to Iras, such requirements are similar to that for other self-employed people and have "always been around".
For instance, if a person's family or friends are invited to a meal for four people, the writer or reviewer will have to declare its market value under taxable income.
However, bloggers can claim these expenses if they are incurred in the course of earning an income.
For instance, Iras said the lipstick received by a reviewer would be taxed if it is the only form of payment received for the article that she writes. But if she is paid for the article, it would not be taxed.
She also cannot claim expenses for the lipstick in this instance. Only things like accounting and administrative fees or advertisement costs are considered expenses.
"The market value of the product or service should not be the taxable amount," said a spokesman for Gushcloud, an influencer marketing and media company. "What would be more accurate and less subjective is the market value of the service the influencer provides in exchange for the in-kind payment, should they accept it."
TAGS
RELATED
nationthailand