Abstract
<p>This scientific article discusses issues related to the taxation of Instagram influencers. Its main objective is to define how the influencers’ incomes should be taxed. To achieve this primary purpose, the partial objective is defined to give the list of (legal) cooperation contracts between the marketers and influencers. The hypothesis that there is no need to adopt new specific tax law norms to tax influencers’ incomes properly, at least in developed countries, was confirmed. All jurisdictions are taxing influencers’ incomes. It is always necessary to focus on the content of the relationship generating influencer’s income, as the principle of priority of content over form must be used. The tax liability is influenced only by the tax base. The tax rate and other structural components of the tax remain the same for different types of incomes. Generally, it is always better for the influencer to have a trading license (to be a businessman) than tax his/her incomes as incomes from copyright. Incomes from dependent activities based on labour law contract or occasional incomes are not probable for a typical influencer, and still, the taxation in this way is not really favourable. The novelty of the presented research lies in the fact that no scientific articles deal with the covered issues published so far. The author believes that the article has a cognitive value for both science and practice.</p>
Highlights
Social media play a more and more crucial role in many aspects of our everyday life
That is why only Instagram is being used as it is one of the two most popular platforms marketers are planning to use for influencer marketing and the fastest growing social network
Compared to the other platforms, 18% of marketers believe Instagram offers the best influencer marketing return on investments (ROI), which is the same as YouTube and only 3% less than online advertising
Summary
Social media play a more and more crucial role in many aspects of our everyday life. At the very beginning, social media were designed primarily for individuals willing to share their feelings, ideas, pictures, videos, etc., with their friends. That is why only Instagram is being used as it is one of the two most popular platforms marketers are planning to use for influencer marketing and the fastest growing social network. The main objective of the contribution is to define how the influencers’ incomes should be taxed To achieve this primary purpose, the partial objective is defined to give the list of (legal) cooperation contracts between the marketers and influencers. U got information on how to be in touch with the followers and how it influences the incomes of the influencer Based on this knowledge, it was possible to define private law relationships applicable to the relation between the marketers and influencers. That is why the most effective brand influencers are generally unknown persons having a very different number of followers and interactions. Global spend on influencer marketing is predicted to be worth somewhere between USD 5 billion and USD 10 billion by 2020 and rising as high as USD 15 billion by 2022.29
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