New proposed tax bill to affect content creators
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Content creation has become a lucrative side hustle for most young people in this generation.
But that is at risk after the government hinted it might start taxing content creators.
This simply means any content creator or influencer , with posts specified as "paid partnerships" will now be taxed.
How the government is actually going to implement this is a concern to the affected parties.
What most people don't know is that not all posts bearing the paid partnerships branding are actually paid for in money form.
Some content creators have been enjoying the privilege of getting PR packages,services offered and fully paid trips in exchange for content.
Those who are actually paid in money form are paid through formal channels that ensure the money is taxed before being paid out.
If this bill is passed,it leaves both a negative and positive impact on creators and business owners.
Creators will have to shift the dynamics of business to receiving money to endorse posts on their page or pay half amount for the services or products.
Their rates will also have to go up to accommodate the tax increase.
Which means for business owners who acquire services of creators to push their products, they will have to dig deeper in their pockets to afford them.
If not , they will have to acquire services from photographers and videographers at an extra fee to be able to get the desired content for their businesses.
This will mean both content creators and business owners compromise on something so that their partnerships are not affected.
So people should not be quick to celebrate because we all know at one point or the other we have relied on creators to market our businesses.
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