Free Doesn’t Always Mean Tax-Free: What Influencers and Sponsors Need to Know

Influencer marketing has become an essential part of brand strategy in Singapore. From lifestyle bloggers to TikTok creators, influencers often receive free gifts, endorsements, or sponsored services as part of their collaborations with brands. While these may feel like perks of the job, there’s an important point to remember: free does not always mean tax-free.

Understanding IRAS Guidelines

The Inland Revenue Authority of Singapore (IRAS) has clear guidelines on how influencer income is treated, including non-monetary benefits such as gifts or complimentary services:

• One-off gifts valued at $100 or less: Generally not taxable.

• Gifts worth more than $100: Fully taxable.

• Recurring freebies (e.g., monthly product drops, ongoing services): Always taxable, even if each item is valued below S$100.

This means influencers must declare not only the cash payments they receive but also the fair market value of the products and services provided to them.

Why It Matters for Influencers

Failing to declare these benefits could result in penalties or unexpected tax bills. Influencers should keep detailed records of all sponsorships, collaborations, and gifts, including dates and estimated values, to ensure accurate tax filings. Staying compliant not only avoids unwanted issues with IRAS but also protects their reputation as professionals.

Why It Matters for Sponsors and Brands

For brands and sponsors, tax compliance goes hand in hand with corporate responsibility. Transparency around what is being provided to influencers helps reduce risks and ensures collaborations are structured in a compliant manner. Proper documentation also demonstrates good governance and strengthens trust between brands and their partners.

Influencer marketing is about creativity and connection, but it should also be about compliance. With the right guidance, you can focus on building meaningful partnerships while avoiding unnecessary complications. Reach out now to get complimentary advice!