Luis Carlos Reyes explains whether ‘influential people’ have to pay taxes

With the rise of social networks and influencers, a series of challenges have also emerged in this growing industry. how should they do In order for these people to pay taxes, they have to clearly state that they are advertising in their content, they may be promoting investments or holding raffles on Instagram or TikTok.,

Many government entities closely monitor the actions taken by each of these content creators, who may be banned and even have their accounts closed if limits are exceeded.

From the Directorate of National Taxes and Customs (DIAN), which checks that they are paying taxes appropriately, to the Superintendent of Industries and Commerce (SIC), which ensures that they do not make misleading advertisements. There is also the Superfinanciera, which checks the spread of opinions on investments, or the Coljuegos, which monitor whether the draws they make are actually supported.

Does La Dian review social networks of influencers?

Absolutely. It not only reviews the network, but audits the economic activities of DIAN taxpayers in general to see whether what they send on paper matches the reality. So, it is important to know that we are following them with appreciation and to ensure that everyone’s tax obligations are met.

What should a person making money as an influencer keep in mind while paying taxes?

That the income received constitutes income and can be taxed like any other activity if it exceeds certain limits, more or less if it reaches about 5 million pesos per month. These people should think like a store or business owner. They may have costs and expenses that can be deducted from taxable income. For example, if a person pays someone to edit their video, if they have to purchase photographic equipment or take out a series of subscriptions. Thus, if your income is 10 million pesos, but you are spending 5 million on expenses necessary for your activity, your income will only be 5 million. This would be a case in which you would have to declare income, but not pay tax with almost complete security. It is important to keep track of what they are spending so that a causal relationship with income can be demonstrated in the event of an audit.

Many of these people receive gifts in kind, do they also need to be declared?

When there is income in kind they are also counted and in accounting it is important to value them at fair market value and include them in what they are receiving. In some cases, they also have a service contract with the brand they are promoting. All this has to be considered.

Have you recognized that influencers are typically underreporting their income?

What we have identified is that because this is a relatively new economic activity, there are a number of young people who have over the limits, who will have to declare and potentially pay, but many are not complying with their obligation. Are. The first approach there has been to facilitate compliance before reaching approval. We have sessions in which they are invited to learn what they need to know in tax matters. As there is more awareness that these tax obligations exist and that we actually have to comply with them, we will start with sanctions. At the moment, the approach is to facilitate compliance.

And do you already have many restrictions?

There were 40 influencers in 2023 that we called to review what they were doing on their networks, but more from an educational perspective. At present, the demand for action has led to a major case of an influential person carrying out reforms which had already escalated. For the rest, they are reforms that have been done in a friendly manner.