Turkish government imposes another hefty fine on influencer

Cem Ozkok, a well-known Turkish social media influencer famous for his cleaning videos, has received a fine of $15,115.

The Ministry of Commerce imposed this penalty because Ozkok did not mark his product promotions as advertisements.

Ozkok, who has garnered significant attention on Instagram and TikTok with his “fosur fosur” (onomatopoetic way of describing cleaning with water) cleaning videos, used his social media accounts to express his frustration. He questioned the fairness of the decision, stating, “Now I ask, is this right? Is it really fair?”

In his public response, Ozkok stressed his contributions to society. While some engage in fake advertising, he has focused on producing valuable content, leading environmental cleaning projects, and donating his earnings to charitable causes.

He emphasized that his activities aim to educate and inspire people of all ages and that he pays taxes comparable to those of a large factory.

Turkish government’s crackdown on influencers

The fine against Ozkok is part of a broader crackdown on undisclosed advertisements by influencers in Türkiye. The Ministry of Treasury and Finance recently intensified its scrutiny of digital advertising, leading to significant fines for misleading and deceptive practices.

During a meeting held on May 16, 2024, the Ministry reviewed 119 cases and found 110 in violation of regulations, resulting in a total of $414,354 in fines.

Finance Minister Mehmet Simsek announced in January that the ministry had begun investigating influencers and other online content creators for tax evasion. The ministry identified approximately 250,000 potentially risky taxpayers through detailed analyses of electronic payment data. This initiative reflects the government’s commitment to ensuring that all online income is properly reported and taxed.

Influencers’ compliance with Turkish law, tax regulations

Under Turkish law, influencers can benefit from a tax exemption if their income does not exceed a certain threshold and all earnings are deposited into a designated bank account. This threshold for the exemption is currently set at $72,000 per year.

The exemption aims to simplify tax obligations for content creators who operate within the legal framework, making it easier for them to comply with tax laws while focusing on their content creation.

To qualify for the exemption, influencers must ensure that all their earnings from social media activities are routed through a specific bank account in Türkiye.

This requirement helps the government monitor and verify the income of influencers, ensuring transparency and compliance. Banks are responsible for withholding 15% of the earnings as income tax at the point of deposit, which simplifies the tax payment process for influencers.

However, influencers who fail to comply with these conditions face substantial fines and additional tax liabilities. If an influencer’s income exceeds the $57,500 threshold, they are required to file a full tax return and may be subject to higher tax rates. This ensures that high-earning influencers contribute their fair share of taxes.

Additionally, those who do not channel their earnings through the designated bank account or fail to report their income accurately can incur severe penalties, including back taxes, fines, and interest on unpaid taxes.

How is the Turkish government monitoring influencers’ taxing?

The government has implemented these measures to prevent tax evasion and ensure that all income is appropriately taxed, contributing to the national economy.

The Turkish government has been increasingly vigilant in enforcing these regulations. In recent years, authorities have conducted extensive audits and investigations to ensure influencers comply with tax laws.

These efforts are part of a broader initiative to curb tax evasion and ensure fair taxation in the rapidly growing digital economy. By implementing stringent regulations and conducting thorough audits, the government aims to create a fairer and more transparent digital marketplace.