Tax Office vs. TikTokers: The end of tax freedom?
TikTok is one of the most popular apps globally. In Poland alone, nearly 11 million internet users engage with the platform each month. It has evolved from a mere source of entertainment into a means of earning money, so it shouldn’t be surprising that tax authorities have also become interested in TikTok. Is it the end of tax freedom for TikTokers?
TikTok, formerly known as Musical.ly, is a social networking platform that has rapidly gained immense popularity worldwide. The app enables users to create, share, and view short videos.
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Initially, TikTok users primarily focused on dancing to popular songs. Today, the platform's content is far more diverse, including funny videos, commentary, daily vlogs, trends, challenges, and much more. Content published on TikTok quickly becomes viral.
TikTok as an easy source of income?
TikTok has long since ceased to serve purely as an entertainment platform. In Poland, users can support their favourite creators during live broadcasts by sending virtual gifts, such as roses, which can be converted into real money.
For a while, TikTok creators and streamers enjoyed the fruits of their labour without the burden of taxation. The money earned through virtual gifts remained untaxed, allowing them to pocket the full amount. However, the National Revenue Information (Polish: Krajowa Informacja Skarbowa, KIS) has stepped in to regulate the taxation of digital income, potentially altering the financial landscape for these content creators.
The end of tax freedom for TikTokers
Tax experts fully support the National Revenue Information's stance. They frequently raise concerns about the lack of taxation on digital income. The online space is a unique environment for earning money, and while there is much discussion about being an influencer as a legitimate profession, topics like tax reporting and accounting for related benefits are less commonly addressed. This is set to change. The new regulations are unlikely to be welcomed by online influencers.
Source: Burbonik
