Accounting for influencers

“Accounting for Freelancers" and "accounting for influencers” are two very current topics lately, as social media advertising has become a major marketing tool. The digital space is the most active field for the expression of every business and specialists, engaged in promotion.

         Quite logically, public figures, who advertise through their profiles, began to generate serious income, which turned this activity into one of the most modern professions. This necessitated the need for competent accounting services for this type of engagement, as it provokes checks and even legislative changes on the part of the institutions.

Are influencers subject to taxation?

Profession "Influencer" is no exception to the others and is not exempt from taxation. Practitioners of this profession can choose several different forms of practicing their activity, according to the legislation.

Are there any penalties for influencers?, who do not declare their income?

In recent years, the topic of influencers' income has been the subject of regular public discussion. There is an increasing interest and control over them from the side of the institutions. Checks are becoming more frequent in order to prevent income evasion, and the sanctions for established violations can reach significant amounts.

For individuals, who have not filed their tax return, the financial sanction starts from 500 BGN. on the first offense and is doubled on each subsequent offense. The amount may be much higher for violations, established as a result of a revision of the National Revenue Agency on the origin of an individual's income.

Under what legal forms can the "Influencer" profession be carried out?

The legislation in Bulgaria provides 3 legal forms for receiving income and carrying out activities as an influencer:

– on employment and non-employment legal relationship – this form concerns income, according to concluded employment or civil contracts with the service provider. When it comes to employment contracts, influencers owe tax and insurance.

When concluding a civil contract, the person retains his individuality as a self-employed person, the tax-insurance burden is almost the same, except for a small percentage of Social Security, is not bound by obligations under the Labor Code for both parties. With this type of contract, there are more commitments regarding the declaration of income, which must be included in an annual tax return. It should be submitted by individuals by April 30 of each year. The tax due is in the amount of 10% from revenues, after deducting legally recognized expenses in the amount of 25 % and insurances at the expense of the employed person.

– as a registered sole trader (MEAT) - with this form of official registration, the sole trader is responsible as an individual for all tax obligations. There is an obligation to file an annual tax return, according to Art. 50 from VAT. The tax due for sole traders is 15% from revenues.

– in the form of a registered limited liability company (Ltd)  – this is the most preferred and, according to us, practical legal form for practicing the "Influencer" profession. For EOOD, the Law on Corporate Taxation applies and the tax payable is in the amount of 10% from revenues.

Each of the listed forms of legal practice of the "influencer" profession requires competent accounting services. It guarantees complete orderliness and accountability to the institutions and, accordingly, an opportunity for development, financing and participation in projects and legal official income, which is needed in lending for example.

For the needs of creative and creative persons Marilena-Consult EOOD offers differentiated services for influencers and freelancers. The service is provided with a focus on the specifics of the activity by personnel with detailed knowledge and experience in this direction.

You can rely on us for the following specific services:

– accounting for influencers

– accounting for freelancers and freelancers

– assistance in the audit of an individual by the NRA

– assistance with the registration of an influencer's company

– assistance in submitting tax returns

Ensure financial peace of mind and professional development!