Today we have new professions related to the kingdom of the web. In particular, two profiles are essential and successful: influencers and streamers. Whether on Twitch, Instagram, YouTube, or TikTok, Canadian influencers and streamers are certainly making a name for themselves on social media, both in terms of rapidly growing subscriber numbers and revenue generated from online platforms.
The careers of streamers and influencers
Influencers are people who post content on social media with a large audience of followers. The Canada Revenue Agency (CRA) defines influencers as “people who have built a reputation based on their knowledge and expertise on a particular topic.” These personalities are able to leverage their reach and popularity to get free money, merchandise, dinners, and other perks from businesses desperate for a favorable review or mention.
In this regard, video game streamers are not too different from influencers. They play video games and broadcast their gameplay to an audience, often for money or freebies. In short, streamers and influencers have their brands strongly tied to their personality or content style.
But why are we attracted to these profiles? Millions of people watch their favorite video game players not only for their skills but also for their entertaining personalities, as well as their sense of community with other watchers. On the other hand, some follow influencers mainly because of their niche skills and less for the surrounding community.
Canadians on the Web and the Question of Taxes
All of this new business has opened the door to paid advertising, merchandise sales, and other similar types of income that are not necessarily related to gambling in the Canadian online casino as one might think. All of this helps streamers and influencers earn significant revenue, sometimes in the millions. As the incomes of these professionals grew and streaming became a more established societal norm, the ARC stepped in.
The Canada Revenue Agency considers any type of social channel that is a source of revenue to be a commercial activity. However, the owner-user must declare all income (monetary and non-monetary) earned through social networks. Obviously, some streamers and influencers do not fully declare their taxable income. Additionally, the fact that many streamers and influencers are young people who may not know how to calculate their taxes properly has also contributed to the CRA’s concern over this.
- Sponsored posts
- Sale of goods
- Channel subscriptions
- Advertising and brand partnerships
Also, note that a non-resident of Canada has the same tax obligations as a Canadian resident when doing business in Canada.
you are not alone
Thus, any action by the ARC is mitigated.
Among other things, these advisors can:
- Influencers may be required to report the following types of revenue streams:
- help you understand required tax records and complete required returns;
- Identify the receipts and documentation you need to collect from your brand partners
Accurately track your income and expenses to make tax time less hassle.