As the digitalization of economic activities progresses, social media actors are increasingly coming into the focus of tax authorities. In North Rhine-Westphalia, the authorities have responded to this trend by launching targeted investigations against individuals generating income through platforms such as Instagram, TikTok, or YouTube. The core issue revolves around cases where taxable income has not been properly reported. The relevant authorities estimate tax losses in the hundreds of millions. In response to the new challenges in the digital realm, a specialized unit has been created within the State Office for Combating Financial Crime.
Introduction of the Influencer Team at LBF NRW
The State Office for Combating Financial Crime (LBF NRW), established in 2025, is an independent body within the North Rhine-Westphalian tax administration. By consolidating responsibilities for particularly complex financial crimes, the agency aims to clarify tax offenses relating to digital business models, among other things. To this end, a dedicated investigative team has been set up, specifically dealing with commercially active influencers, streamers, and other social media actors.
The investigations are based on several thousand datasets from publicly accessible sources. The focus is on commercially operated social media channels where income from advertising, affiliate marketing, product placements, or sponsorships is suspected. Attention is paid not only to cash payments but also to benefits in kind, such as gifts, travel, or invitations to events.
When does influencer activity become relevant for tax purposes?
In principle, income is taxable if there is a sustainable economic activity with the intention to make a profit. This does not only apply to traditional forms of business but also to individuals who regularly publish content for payment or other valuable consideration. Tax relevance arises as soon as a social media channel is operated on an ongoing basis, cooperations are documented, or income is generated through platforms such as YouTube, Twitch, or Patreon.
Overview of typical taxable content
- Paid product placements or advertising contracts
- Affiliate links with commission sharing
- PR samples, gifts, or travel in exchange for consideration
- Income from subscriptions or fan platforms
- Sale of own products or services
Even when no cash payment is made, a taxable income exists if an economically valuable consideration is provided. The value of such benefits must be estimated and declared.
Relocation of residence and international tax liability
In many cases, influencers move their residence abroad, in particular to countries with lower tax burdens. Dubai is often cited as a popular destination. However, an official move does not automatically mean the end of tax liability in Germany. The decisive factor is whether an ordinary residence or economic interests remain in Germany.
If an apartment is still available in Germany, the center of vital interests is in Germany, or if income from German sources continues to be generated, unlimited tax liability may persist despite living abroad. The tax authorities examine this on a case-by-case basis.
Cooperation between countries and exchange of information
International cooperation in the area of taxation has markedly intensified in recent years. Over 100 countries participate in automatic information exchange, including countries previously known for limited transparency. Financial institutions regularly transfer information on accounts, beneficial owners, and investment income to the tax authorities of the country of residence under existing agreements.
Companies that cooperate with influencers also record the services for accounting purposes—such as through invoices, contracts, or proof of payouts. These data points can lead to the identification of social media actors during tax audits or VAT pre-filings. The possibility of complete anonymity is thus greatly restricted.
Digital investigative approaches and technological methods
Tax investigators use modern analysis tools to evaluate publicly available content. Using specialized software and artificial intelligence, content can be automatically searched, linked, and assessed. This includes, among others:
- Brand recognition in photo and video material
- Collaboration indicators such as “Anzeige” or “Sponsored”
- Travel itineraries, hotel tags, and location data
- Integration of payment systems and affiliate links
Based on this data, suspicions are systematically compiled and cross-referenced with existing tax information. Due to the public presence of many influencers, securing evidence is often simpler than with traditional companies.
Voluntary disclosure as a possible measure
Individuals who have submitted incomplete or incorrect information to the tax office may, under certain conditions, avoid prosecution by submitting a voluntary self-disclosure. To be effective, the declaration must be complete, timely, and factually correct. It must cover all tax-relevant periods and amounts.
An incomplete self-disclosure may, however, have legal disadvantages. Therefore, careful review and preparation are necessary. Tax obligations do not end with changing platforms or withdrawing from the public eye.
Assessment and future developments
Controls in the digital sector show that tax regulations are adapting to economic realities. The general regulations for taxation of income apply to all economically active content creators. The increasing professionalization in social networks inevitably leads to an expansion of tax obligations.
At the same time, it is foreseeable that this development will continue. The use of digital analysis tools will be further expanded. Likewise, intensified international cooperation between tax authorities can be expected.
Conclusion
Influencers who regularly generate income through social platforms should thoroughly examine their tax obligations. The public visibility of this professional group significantly increases the likelihood of review by tax authorities. Even without direct payment—for example, in the case of benefits in kind—taxable events may occur and must be reported. Having a residence abroad does not automatically protect against tax liability in Germany if economic interests remain in the country.
In cases of unclear or complex circumstances, early legal advice on national and international tax matters can be advisable. A qualified legal analysis helps to identify potential risks, create compliant structures, and develop a reliable tax solution if needed.
