Tax authorities focus on influencers

German tax authorities are increasing their focus on social media influencers and their taxable income. Since 2020, several state finance ministries have published information on how influencers should be taxed, and in July 2024, the finance ministry of Schleswig-Holstein provided a more detailed stance on income taxation.

The influencer activity is increasingly being recognized as a profession, generating income through collaborations with brands, advertising, and commissions. This growing commercialization has led tax authorities to examine these revenues more closely. Given recent measures against tax evasion in social media, implemented in states like Hamburg, North Rhine-Westphalia, and Thuringia since 2025, further oversight is expected.

From a tax perspective, influencer income can be treated in different ways. If the activity is classified as business income, it is subject to business tax and potentially chamber of commerce fees. If it is deemed self-employment, different tax rules apply. For occasional influencer activities, "other income" may be applicable, which can be tax-free up to a certain threshold.

BDO AG, an auditing and consulting firm, emphasizes the importance of correctly classifying influencer activities to avoid issues with tax authorities. The firm outlines the different types of income and potential areas of dispute. Differentiating between various income streams is crucial, especially if an influencer engages in multiple activities concurrently.