Gift and Service Tax for Social Media Content Creators: In-Kind Income Now Included

Is This a New Tax or an Existing Regulation?
Technically, this is not the introduction of a new tax, but rather the application of the existing exemption regime to include in-kind (non-cash) income.
If the specified exemption limit is exceeded, taxpayers are required to file an annual income tax return.
What is In-Kind Income and How is it Taxed?
According to the Income Tax Law, earnings do not consist solely of cash payments.
For instance, a content creator receiving a free meal in exchange for promoting a restaurant or accepting a gifted product for brand promotion is considered "in-kind income." The implementation principles of this situation were clarified with the Income Tax General Communiqué No.
325, dated September 26, 2024.
Obligation to Deposit into Bank Accounts According to the communiqué, the fair market value of a product or service received in exchange for promotion must be deposited by the content creator into a bank account opened within the scope of the exemption.
This deposit must occur on the date the product is received or at the beginning of the following month.
The bank will then withhold 15% of the deposited amount and transfer it to the tax office.
The same procedure applies to meals, accommodation, or any other services provided in exchange for promotion.
Consequences of Non-Compliance If content creators fail to deposit the fair market value of their in-kind income into the designated bank account, they may lose the right to benefit from the advantageous 15% withholding regime.
In such cases, the income will be taxed according to general provisions, and sanctions such as tax penalties and delay interest may be applied.
In accordance with Article 3 of the Tax Procedure Law, the actual nature of the tax-generating event will be taken as the basis, and it is of great importance that the evidence presented is concrete and auditable.