06 Mar 2025

Social media influencers in Ireland issued with more than 450 letters by Revenue over gifts

The Irish Times recently reported that, ‘more than 450 letters have been issued to social media influencers by the Revenue Commissioners reminding them of their tax obligations, including their duty to declare income from online activities and gifts they receive.’

According to the article, Revenue has issued 457 letters since September 2023 to support voluntary compliance and “address areas of noncompliance” with the latest batch being sent in October.

This increased focus on the influencing sector highlights Revenue's awareness of the income potential from online activities. Influencers are being warned that all forms of income, including gifts and virtual currencies, must be included on their tax returns.

Revenue also acknowledges that some influencers might be unaware of their tax obligations or the specific tax treatments applicable to their various forms of income. While a small gift exemption allows individuals to receive up to €3,000 per donor per year without tax liability, any value above this amount is subject to a 33% capital acquisitions tax rate.

Influencers who fail to report or underreport their income may face significant consequences, including interest on outstanding tax liabilities and penalties ranging from 3% to 100% of any underpaid tax. They could also be listed as tax defaulters and face criminal prosecution.

The article also included views of Alan Purcell, an accountant and tax adviser at CloudAccounts, which represents several influencer clients, who pointed out that influencers managed by agencies are often tax-compliant, while others might be "winging it" or unaware of their obligations, especially when it comes to gifts like free products or hotel stays given in exchange for reviews.

Revenue will continue to use third-party information, intelligence, taxpayer returns, and other sources to identify noncompliance and ensure influencers meet their tax responsibilities.

Click here to read the full article.

See the ASAI Guidelines for Influencers on tax aspect here and the PRII Guidelines here.