Ugly Blogger Xia Suay taken by surprise by IRAS letter on taxable income

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An honorable member of the Coffee Shop Has Just Posted the Following:

SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.

938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.

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Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.

Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.

“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”

“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product', so it doesn’t make sense to me,” she added.



The IRAS letter sent to bloggers

Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”

938LIVE understands that IRAS sent the letter as sent as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers.

Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.

A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.


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