New Business Tax Obligations for Taiwan Influencers

Influencers are an emerging profession, and in Taiwan there has not yet been a clear consensus on how they should be taxed. Recently, however, the Ministry of Finance issued the “Guidelines on the Imposition of Business Tax for Individuals Who Regularly Publish Creative Works or Share Information Online.”

According to the new regulations, influencers in Taiwan must register for tax purposes and pay business tax if they meet any of the following conditions:

1. Having a physical and fixed place of business in Taiwan. 
   

   
   

   For example: maintaining an office in Taiwan, residing in Taiwan, using a Taiwanese mobile number (+886), or being identifiable as a Taiwan resident through billing address, bank account, IP address, SIM card, or other related information.
   

   
   

2. Operating under a registered business name 
   

   
   

   For example: having established a sole proprietorship, business entity, studio, or company in Taiwan.
   

   
   

3. Employing staff to assist with sales activities 
   

   
   

   For example: hiring employees to handle business matters.
   

   
   

4. Reaching the monthly sales threshold for business tax through online transactions (currently TWD 100,000 for goods or TWD 50,000 for services).
   

The types of income may include:

1. Donations received from followers or audiences
   

2. Advertising revenue sharing from platforms (e.g., Youtube, Instagram, etc).
   

3. Sponsored content income from collaborations with brands or businesses.
   

For instance: 

Vivian is a Taiwanese resident who runs a beauty YouTube channel where she shares her makeup tips and techniques and occasionally accepts sponsorships. She receives TWD 65 in revenue from YouTube. Of this, 80% (TWD 52) comes from paid and unpaid views within Taiwan. Since the place of service provision, viewing, and use all occur in Taiwan, Vivian must pay business tax at the rate of 5% (or at 1% if she qualifies as a small-scale business operator*).

Note: A small-scale business operator refers to those with a limited scope of business, occasional transactions, and an average monthly turnover of less than TWD 200,000. Such businesses are assessed and taxed at a deemed rate of 1%.

Considering that influencers and platforms may not be fully familiar with the new rules at the initial stage of implementation, a grace period has been set until June 30, 2026 (with filing and payment due by July 15, 2026). 

During this period, if influencers or platforms fail to comply with the requirements, such as registering for tax purposes, issuing and delivering uniform invoices, or filing and paying business tax, they will be exempt from penalties under Articles 45, 51, and 52 of the Business Tax Act and Article 44 of the Tax Collection Act.