Tax on content creators including gig economy
The New Zealand Inland Revenue has issued an Interpretation Statement on the Goods and Services Tax and income tax liabilities of online content creators for payments, consideration, merchandise sales, donations or gifts, prize winning and other remuneration received. This includes the obligation to register and charge New Zealand GST in line with other businesses – including exceeding the GST registration threshold of NZD 60,000 (approx. $ 41,600 or €36,000).
What is taxable income from content creation
Online content creators are typically those businesses or individuals (including gig economy participants) offering the following supplies:
- posting videos, images or text on social media platforms such as YouTube, Instagram and Facebook;
- competing in online gaming competitions; and
- streaming game play on platforms such as Twitch, Facebook gaming and YouTube gaming.
Content creator income types
- payments from
- platforms based on the number of times content is viewed;
- platforms when viewers subscribe to channels created by the content creator;
- promoting products or brands in the content creator’s online content;
- advertisements embedded in the online content;
- commissions earned from affiliate marketing and links;
- sales of merchandise or other products or services through platforms such as Shopify or Gumroad;
- donations or gifts; and
- prize money (eg, from e-sports competitions).