Influencers are being urged to pay their taxes accurately to avoid penalties and interest on unpaid tax liabilities.
According to Pinsai Suraswadi, director-general of the Revenue Department, some influencers lack knowledge of tax obligations, while others deliberately evade taxes.
For tax evasion, he said the department strictly enforces the law and imposes a fine of double the tax amount in cases where no tax return is filed, and a fine equal to the underpaid tax amount if a return is filed but incomplete.
In addition, an interest surcharge of 1.5% per month or 18% per year is added to the outstanding tax liability. Any portion of a month counts as a full month for interest calculation purposes.
The financial burden for deliberate tax evasion can be steep, said Mr Pinsai.
For example, if a person owes 10,000 baht in taxes, the maximum interest can reach up to 10,000 baht depending on how long the tax has been unpaid, plus a penalty of double the tax amount. This would result in a total payment of up to 40,000 baht.
If the tax owed is 1 million baht, the total amount due including penalties and interest could tally 4 million baht. The longer the tax remains unpaid, the higher the amount will be, he said.
However, the penalty can be reduced at the discretion of tax officers. For instance, if the taxpayer realises there is unpaid tax and voluntarily submits a return within the time frame set by officials, or if his or her past tax filing history is considered favourable, the penalty may be reduced by 25%, up to a maximum of 50%.
However, the interest and surcharge cannot be reduced.
Influencers generate income from posting on social media. According to a 2022 survey by Nielsen, there are around 2 million influencers in Thailand, the second-highest amount in Southeast Asia after Indonesia.
Influencers earn income from product reviews, advertising revenue, selling their own merchandise, subscription and exclusive content fees, event and appearance fees, affiliate marketing, coaching and course fees, and writing or selling content.
Taxes must be paid on this income, whether the person is a salaried employee who works as an influencer on the side, or a full-time influencer. All income must be included in the personal income tax calculation.
In calculating taxes, expenses can be deducted, but the allowable deductions vary depending on the type of income.
Influencers need to identify their income sources correctly to calculate tax accurately, said Mr Pinsai.
