Influencers/creators should sign services agreements or employment agreements with their own entities (this does not apply to establishments) and receive their compensations by virtue of such agreements in order to segregate their commercial activities from their personal ones, and avoid widening their tax exposure by clearing any confusion between the entity’s income and theirs as influencers.
As a general advice, influencers and creators are strongly recommended to consult with auditors and tax consultants in relation to their activities and obtain legal advice to better understand the rules and regulations applying to them and their activities, and ensure such activities are compliant with applicable laws.
Julien Cordahi, Deputy General Counsel & Legal Officer, and George Hoyek, Finance Manager, at Choueiri Group share a Q&A with some considerations on a variety of tax-related questions for influencer marketing, covering a variety of questions such as:
- Should I register for VAT?
- What is a taxable supply?
- Any correlation between tax residency and UAE residency?
- What is my post-registration to-do list?
- How are barter deals treated?
- Can I claim input VAT?
Learn more about the state of transparency in influencer marketing in the United Arab Emirates – Explore the full market study and report: