SINGAPORE: Netizens who receive products or services worth more than $100 from companies or regularly over a period of time – must now declare them to the taxman.
Some examples are five-course meals, sponsored travel, magazine subscriptions or door gifts at events. These are often given in return for reviews or advertisements on the social media platforms of prominent bloggers or influencers, as trendsetters are called.
The taxman has come to a consensus with social media management companies and bloggers on the conditions under which such “non-monetary benefits in kind” have to be declared as part of their taxable income. The rules were, however, issued only close to the filing deadline this year.
Thus, the Inland Revenue Authority of Singapore (Iras) told The Straits Times that the online community has until April 18 next year to declare the items and, therefore, the income received last year. Those who flout the rules will have to pay a penalty amounting to double the tax undercharged.
In March, Iras wrote to bloggers to remind them that such benefits must be declared as part of their income. They were to do so by the following month. Some bloggers and social media influencers said it was hard to keep track of multiple, low-value items given to them.
Iras responded that the requirements are not new and are similar to those for other self-employed taxpayers. It has now clarified the guidelines, put them online and communicated them to bloggers, their management companies and the National Youth Council.
Netizens welcomed the clarity that the new guidelines bring.
“This $100 clarification gives bloggers and influencers more clarity as to what needs to be declared,” said Ms Yang Huiwen, regional director of social media company Netccentric, which has a network of 62,000 blogs here.
Mr Mark Amatya, a director at accounting firm PwC, agreed. “The threshold of $100 seems reasonable as it may mean that most items provided to bloggers are exempt from tax or reporting,” he said.
