TAX TREATMENT OF PAYMENTS AND IN-KIND BENEFITS PROVIDED TO INFLUENCERS

We would like to share recent developments regarding the tax treatment of payments and in-kind benefits provided to social media content creators (influencers) in Türkiye. This update is based on the private ruling (in Turkish, “Özelge”) dated 6 January 2026 issued by the Turkish Revenue Administration, which provides clarification on the income tax and VAT treatment of advertising payments made to social media content creators, as well as the explanations provided under the General Communiqué on Income Tax (Serial No. 318).

• Under Provisional Article 20/B of the Income Tax Law, income derived from social media content creation activities, including advertising, product promotion and brand collaborations is treated as commercial income and may benefit from a special taxation regime, provided that the statutory conditions are met. The regime operates through a bank-based withholding mechanism. Content creators must open a dedicated bank account in Türkiye and collect all income exclusively through this account. Banks apply a 15% withholding tax, which constitutes final taxation, provided that the annual gross revenue does not exceed TRY 5.3 million for 2026. In such cases, the content creator is not required to file an annual income tax return. As clarified in the private ruling dated 6 January 2026, companies making advertising or promotional payments to social media content creators operating within this regime are not required to apply additional withholding tax under Article 94 of the Income Tax Law, since the tax obligation is fulfilled through bank withholding. If the regime conditions are not met – for example, if the income is not collected through the designated account or the threshold is exceeded- the income becomes subject to general taxation rules, including annual declaration and potential tax liabilities.
• From a VAT perspective, advertising and promotional services provided within the scope of this regime are exempt from VATpursuant to Article 17/4-a of the VAT Law and article II/ F-4.26 of the VAT General Implementation Communiqué (in Turkish, “KDV Genel Uygulama Tebliği”). Services falling outside the scope of the regime remain subject to VAT under general provisions.
• Besides, pursuant to article 6/3 of the General Communiqué on Income Tax (Serial No. 318) (in Turkish, “318 No.lu Gelir Vergisi Kanunu Genel Tebliği”), social media content creators benefiting from the exemption are not subject to bookkeeping or invoice issuance obligations. Accordingly, influencers operating within the scope of the regime are not required to issue invoices for their services.
• In addition to monetary payments, products or services provided free of charge for promotional purposes may, depending on the circumstances, be treated as in-kind benefits (in Turkish, “ayni gelir”). Even where no cash payment is made, the fair market value of such benefits may be considered part of the influencer’s income, as the tax assessment is based on the economic substance rather than the form or designation of the benefit. Where consideration is provided fully or partially in kind (e.g. PR products instead of cash), the conditions of the special regime may not be satisfied, since one of the key requirements is that the income must be collected through the designated bank account. In such cases, the transaction may fall outside the scope of Article 20/B and be subject to general taxation rules.

Accordingly, the total value of cash payments and non-returned products received within a year must be considered together in determining whether the annual threshold is exceeded. If the combined amount exceeds TRY 5.3 million for 2026, the content creator becomes subject to the general income tax regime.

In summary, payments made to influencers may benefit from the special regime subject to bank withholding tax and VAT exemption, provided that the statutory conditions are met. However, benefits provided in kind may affect the applicability of the regime and should be evaluated based on their economic substance.

Our Law Firm remains at your disposal for any further clarifications you may need.

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