Tax Obligations and Options in Influencer Marketing
Income earned by influencers on the internet is no longer overlooked by tax authorities. Rather, influencers are recognized as entrepreneurs with all associated tax obligations. This became clear by July 2025 at the latest, when it was revealed that the State Office for Financial Crime Control in North Rhine-Westphalia (LBF NRW) is analyzing a comprehensive data set to track down professional influencers who allegedly willfully evaded their tax duties. The tax administration plays a central role in supervising and clarifying influencers’ tax obligations. Influencers are individuals who generate income through their activities on social media platforms; digitalization enabled this profession and led to new income sources. Tax authorities and tax offices are increasingly committed to raising awareness among influencers about the tax treatment of their income and emphasize the necessity of resolving all tax-related questions early on. The focus is not on hobby bloggers or occasional users of social media, but on professional content creators who regularly generate substantial income.
Tax Risks and Penalties for Influencers
Tax evasion is no longer a minor offense and can result in severe penalties ranging from fines to imprisonment. Influencers should therefore be aware of their tax obligations and, if applicable, consider filing a self-disclosure to avoid criminal liability for tax evasion, according to the law firm MTR Legal Rechtsanwälte, which also advises on tax law and tax criminal law. Influencers earn income from various sources such as posts, texts, images, videos, blogs, and product placements, each potentially having different tax consequences. Presence on social media and the number of followers are crucial for influencers’ reach and economic success. Products, goods, benefits in kind, services, and any business income must be properly documented and taxed as profit in the profit determination. Clear rules apply to the taxation of influencer income, making compliance with all tax regulations especially important. Companies collaborating with influencers also have tax obligations, for example, regarding the assumption of flat-rate tax on free products and services. Proper remittance of taxes, accurate tax declarations, and timely tax payments are essential; support from tax advisors is advisable. Prompt responses to tax questions and proactive clarification of open issues are indispensable for correct tax classification and consultation. Official guidelines and decrees, such as those from Schleswig-Holstein (e.g., VI 3010, S 2240) and relevant paragraphs like § 6 b EStG, provide important orientation for influencers. Establishing a GmbH can offer influencers tax advantages and is a common business form in this sector. Influencer marketing is nowadays an essential part of modern corporate communication and marketing strategy. The influencer profession brings new tax challenges due to digitalization that require precise knowledge of the tax framework.
Tips and Information for Influencers
The investigations by LBF NRW have caused considerable uncertainty among influencers regarding their tax obligations. The NRW tax office has responded by compiling important tips and information for influencers at finanzamt.nrw.de/influencer.
The website outlines which types of income are taxable. These include, among others, income from cooperations, advertising posts, affiliate links, or merchandising. Product placements represent a particularly significant source of income that must also be reported for tax purposes. It should be noted that not only monetary payments but also benefits in kind such as free products, goods, trips, or vouchers as well as free services and any services count as taxable business income, provided they are related to one’s own activity. Even accepting a free product for advertising purposes can represent a monetary benefit that must be reported to the tax office. Donations via streaming platforms or subscription models are also included.
For documentation, it is important to fully record all services and business incomes to ensure correct profit determination. In cases of uncertainty, it is advisable to consult the relevant pages in official guidelines or decrees issued by the tax administration.
Various Relevant Types of Taxes
Several tax areas need to be considered: First, income tax, which applies to the profit. Tax liability arises once the basic allowance is exceeded. Additionally, trade tax may become relevant if there is a commercial activity and the profit exceeds the threshold of 24,500 euros per year. Value-added tax must not be overlooked either: Those who regularly generate income are considered entrepreneurs under VAT law. However, under certain conditions, the so-called small business regulation can be applied. It applies if the turnover was below 25,000 euros in the previous year and is not expected to exceed 100,000 euros in the current year. Still, a formal declaration to the tax office is required. Correct taxation and compliance with all tax regulations are particularly important for influencers to avoid tax risks and additional payments.
A key point is documentation: Income, expenses, contracts, collaborations, and also benefits in kind should be fully recorded. It is essential to capture all business income and every single business receipt without gaps to ensure correct profit determination and accurate calculation of profits. Errors or omissions, such as late tax returns or incomplete information, can lead to interest, surcharges, or even tax criminal investigations.
Returning to tax legality through voluntary disclosure
If income was generated but not declared to the tax office, the offense of tax evasion under Section 370 of the Fiscal Code (Abgabenordnung) may be fulfilled. In such cases, voluntary disclosure can be a way to avoid criminal consequences. Through voluntary disclosure, the taxpayer can return to tax legality. For the voluntary disclosure to have a mitigating effect, various conditions must be met. It must be complete and submitted on time. Complete means that all previously undeclared income and periods must be disclosed. On time means the tax authorities are not yet aware of the offense or the essential circumstances.
Anyone who has not filed a tax return or has only submitted an incomplete one should not delay. If tax evasion is discovered, it may be too late, and tax investigators may already be at the door.
Defense against investigation measures
If influencers come under scrutiny from the tax office or other authorities, quick and deliberate action is required. Investigative measures can have significant consequences for influencers active on social media platforms such as Instagram, YouTube, or TikTok – ranging from additional payments to criminal proceedings. In such cases, it is advisable not to communicate independently with the authorities but to immediately involve an experienced tax advisor or lawyer. These experts know the current rules and obligations in tax law and can specifically address the individual situation.
Professional support helps to protect one’s rights and avoid mistakes in dealing with the tax office. Especially in defense against investigation measures, it is crucial to fully document all business income and expenses without gaps. Those who regularly review their tax returns and tax obligations and correctly report all relevant information on products, collaborations, and income can avoid many pitfalls. If an error is still found in the tax return, it is advisable to correct it immediately with the support of a tax advisor to minimize possible negative consequences.
Furthermore, influencers should use their reach and influence responsibly. Transparency towards followers and cooperation partners builds trust and can also play a positive role in case of investigations. Compliance with all tax rules and obligations is not only a legal requirement but also a sign of professionalism in influencer marketing.
Ultimately, anyone active as an influencer on social media platforms should regularly inform themselves about current tax law developments and not hesitate to seek expert advice in case of uncertainties. This way, risks can be minimized and one’s activity as an influencer can be designed to be legally secure.
Competent support
However, a voluntary disclosure that exempts from punishment is not straightforward and should not be prepared without expert support. Even small mistakes can render the voluntary disclosure ineffective overall. While it then no longer exempts from punishment, it may still have a mitigating effect. For example, if it is considered an expression of genuine remorse, it can mitigate the severity of the penalty.
It must be taken into account that intent must also be present for a tax offense. The income must have been deliberately concealed or misrepresented. However, even if only negligence and no intent applies, tax evasion still exists and can be punished as a tax regulatory offense with a fine of up to 50,000 euros.
MTR Legal Rechtsanwälte has extensive experience in tax criminal law and in preparing effective voluntary disclosures.
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