Summary
Summary
The Taiwanese Ministry of Finance has introduced a new VAT liability for online content creators who generate income through social media platforms. The new regulations aim to tax individuals who monetize their content through advertising, subscriptions, or paid services.
The continuous increase in revenue generated through social media platforms, by platform operators on one side and by online content creators on the other, hasn’t gone unnoticed by the Taiwanese Ministry of Finance and the related revenue authorities.
More and more individuals are generating income by producing online content. That could mean uploading different types of videos, images, audio, or other content to digital platforms, which are later monetized by the platform.
The monetization primarily comes through advertising, subscription fees, or paid services. The income that individuals generate in this manner is going to be taxed.
On September 10, 2025, the Ministry of Finance issued the “Operational Regulations for Levying Business Tax on Individuals Who Frequently Publish Creations or Share Information Online”. The National Taxation Administration (NTA), in consultation with the Ministry of Finance, introduced the so-called “guidance period,” during which responsible online content creators and digital platforms that “operate” in good faith will be exempt from penalties for non-compliance.
New Framework
The guidance period began on September 10, 2025, and finishes by June 30, 2025. The first return submission and payment should be processed by July 15, 2026.
Tax on Social Media Content
The Guidance period, led by the National Taxation Administration in the first person, is precisely what the name/description stands for. The revenue authority officials will provide tax assistance to all online content creators and platform operators who have any inquiries, doubts, or need guidance on establishing a tax-compliant system aligned with the new rules.
The guidance period started on September 10, 2025, and will last until June 30, 2025. During this period, different types of non-compliance will be exempted from penalties. Non-compliance, such as late registration, late filings, or late payment of business taxes, or the non-issuance of uniform invoices, will be exempt from penalties.
Tax Authority will serve as an experienced tax consultant that will closely assist to all interested parties, on how to register, file declarations, pay taxes, issues electronic invoices, store, archive supporting documents, and other, that is connected with the liability to register for Business Tax, collect and remit collected tax, when the person is liable for it, under new regime.
The deadline for returning and paying all business taxes collected since the Regulation came into force is July 15, 2026.
Impact
The NTA emphasized that income generated by online content creators, which is monetized through digital platforms, is taxable under Business Tax. In addition, the tax liability triggered by this event will likely not cover the full amount of the invoice in many cases.
Tax registration is mandatory for domestic online content creators, and business tax collection is related to domestic supply. For domestic supplies, the Business Tax at 5% will be charged; for transactions where the place of supply is outside Taiwan, that part of the transaction, or the entire transaction, will be zero-rated.
The tax registration obligation is triggered when domestic providers have:
- Fixed place of business within Taiwan, possess a business license, or employ sales personnel; or
- In cases when they sell goods or services through the internet, and they reach the registration threshold
If any of the above criteria are met, the service provider must register for business tax and comply with all tax-related requirements.
The commission or service income that the platform operator receives from content providers is also taxable.
Takeaway
The substantial increase in the revenue generated by online content creators through platforms like YouTube, Instagram, Meta, and TikTok hasn’t gone unnoticed by the Ministry of Finance.
Author: Aleksandar Delic
The introduction of the tax framework for online content creators and related platform operators that intermediates in the supply and also generates commission income is a strong response by the Taiwanese revenue authorities.
After the guidance period, the first mandatory return submission and related remittance should be handled by July 15, 2026.
Indirect Tax Manager – E-Commerce
Starting in 2026, Taiwan will impose VAT on income generated by online content creators through platforms. This includes income from monetization methods such as advertising, subscription fees, and paid services, and the new regulations require content creators and platforms to register for Business Tax.
The guidance period began on September 10, 2025, and ends on June 30, 2026. During this period, content creators and platform operators who comply in good faith will be exempt from penalties for non-compliance, such as late registration or filings. The goal is to help businesses transition smoothly to the new tax system.
The first return submission and payment must be processed by July 15, 2026. This date marks the end of the guidance period, after which content creators must fully comply with the new tax obligations.
Content creators must register for Business Tax, issue uniform invoices, collect and remit tax, and maintain proper records. The Business Tax rate for domestic transactions is 5%, and the tax liability will depend on the location of the supply.
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