Taxman knocks on bloggers' doors

[Jayy25]

SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.

 

938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.

 

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Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.

 

Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.

 

“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”

 

“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product', so it doesn’t make sense to me,” she added.

 

 

 

The IRAS letter sent to bloggers

 

Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”

 

938LIVE understands that IRAS sent the letter as sent as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers. 

 

Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.

 

A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.

 

 

All of the sudden, the bloggers become blur queens and kings..... I always thought they reckoned themselves to be very smart which is why they can market products and services to be sold at a value-for-$... now suddenly declaring tax becomes rocket science to them

Edited March 17, 2016 by Jayy25

[Xeryh]

Correct me if I'm wrong but only sponsorship/donation to IPCs are tax deductible? 

 

 

for the seller, sponsor items are tax deductible hence the recipient must declare for tax purpose. 

 

nothing is tax free.

 

[Jman888]

 

All of the sudden, the bloggers become blur queens and kings..... I always thought they reckoned themselves to be very smart which is why they can market products and services to be sold at a value-for-$... now suddenly declaring tax becomes rocket science to them

 

 

 

act blur, if duno how much how to recommend to readers  

[Kusje]

Correct me if I'm wrong but only sponsorship/donation to IPCs are tax deductible? 

 

Sponsorship is different from donation.

 

Sponsorship will usually be classified under market cost.

[Nzy]

Just because it is one man show then no need pay tax? Then those insurance agents and property agents and other self-employed people can don't pay tax or not? Alot of them one man show also leh. Taxi drivers also.

[Benarsenal]

Question: How do they determine whether is a business or not?

 

Some people earn $0 cash from blogging but get benefits anyhow (like invited to events etc). Then like that how to calculate?

[Nzy]

Question: How do they determine whether is a business or not?

 

Some people earn $0 cash from blogging but get benefits anyhow (like invited to events etc). Then like that how to calculate?

 

The will incur costs when blogging. If their cost is more than what they earn then no need pay tax lo. If they are able to earn enough to cover costs and still have extra then can consider as a sideline already...

[Ake109]

Question: How do they determine whether is a business or not?

 

Some people earn $0 cash from blogging but get benefits anyhow (like invited to events etc). Then like that how to calculate?

 

Yes this is not always easy.

 

Can we write letter ask IRAS say Christopher Tan always get free luxury cars to drive for week or weekend, need to tax as benefit-in-kind/sponsorship?

 

Ministar walk around hawker center if receive free-kueh from aunty, have to declare also?

Edited March 17, 2016 by Ake109

[Runforyourlife]

Hmmm Jian hao is a millionaire after becoming a youtuber?

[BenTong]

Yes this is not always easy.

 

Can we write letter ask IRAS say Christopher Tan always get free luxury cars to drive for week or weekend, need to tax as benefit-in-kind/sponsorship?

 

Ministar walk around hawker center if receive free-kueh from aunty, have to declare also?

Benefit in kind/sponsorship technically is different from a gift or a belanja. Sponsorship is usually considered income. The laws are quite clear. Let me bring in another area. Say you are employed and you are required to travel overseas by business class. Do you know that the points that you earn while flying in the course of work is taxable and need to be declared?

[Mockngbrd]

Yes this is not always easy.

 

Can we write letter ask IRAS say Christopher Tan always get free luxury cars to drive for week or weekend, need to tax as benefit-in-kind/sponsorship?

 

Ministar walk around hawker center if receive free-kueh from aunty, have to declare also?

That fella not blogger, am sure he pays his taxes.   

Question: How do they determine whether is a business or not?

 

Some people earn $0 cash from blogging but get benefits anyhow (like invited to events etc). Then like that how to calculate?

See those with many many ads/sponsors on their page lo, with links to allow advertisers to contact them to advertise on their blog pages. 

Edited March 17, 2016 by Mockngbrd

[Kusje]

That fella not blogger, am sure he pays his taxes.   

You miss his point leh.

 

When Chris declares his income (or when SPH declares it for him), is the benefit of driving a new car included or not?

[Strat]

think the issue is these bloggers became too famous and attracted the watchful eye of the taxman; 树大招风...

 

but if they not famous , they will not attract sponsorships, products for review etc. 

 

 

 

[Mockngbrd]

You miss his point leh.

 

When Chris declares his income (or when SPH declares it for him), is the benefit of driving a new car included or not?

 

i don't think so. I don't think it's considered a benefit in his case, it's part of his jobscope.  Do chauffeurs declare their "benefit" of driving lux cars?  

 

 

If he gets a Ferrari to drive on his off day long-term without having to do anything or write anything about it then maybe.  

Edited March 17, 2016 by Mockngbrd

[BenTong]

You miss his point leh.

 

When Chris declares his income (or when SPH declares it for him), is the benefit of driving a new car included or not?

That's not a benefit that's taxable.

[Kusje]

i don't think so. I don't think it's considered a benefit in his case, do chauffeurs declare their "benefit" of driving lux cars?

 

 

If he gets a Ferrari to drive on his off day long-term without having to write an article on it, then maybe.  

 

That's the point that bloggers are raising and IRAS needs to address.

 

If I write an article on this yummy lunch (for which I paid nothing), do I have to pay tax on the lunch? I had to write an article on it leh.

That's not a benefit that's taxable.

 

I'm not a blogger or a tax expert but if IRAS can provide some further clarity on what is taxable and what is not, these bloggers have to shut up and pay.

[BenTong]

That's the point that bloggers are raising and IRAS needs to address.

 

If I write an article on this yummy lunch (for which I paid nothing), do I have to pay tax on the lunch? I had to write an article on it leh.

Not taxable. But if they sponsor for future lunches or dinners, yes

[Mockngbrd]

That's the point that bloggers are raising and IRAS needs to address.

 

If I write an article on this yummy lunch (for which I paid nothing), do I have to pay tax on the lunch? I had to write an article on it leh.

I guess they do if they are getting $$$$$ for it. Some bloggers charge a stupid amt of $$$$$ to have their free lunch featured.

 

That's the point that bloggers are raising and IRAS needs to address.

 

If I write an article on this yummy lunch (for which I paid nothing), do I have to pay tax on the lunch? I had to write an article on it leh.

 

I'm not a blogger or a tax expert but if IRAS can provide some further clarity on what is taxable and what is not, these bloggers have to shut up and pay.

I'm sure IRAS will provide many many clarity to them