Brasília
BRL (R$)
No
PayPal, Bank Transfer
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If the influencer is acting as an individual without any registered activity, it is essential to be aware of applicable rules and regulations, as you may have additional responsibilities towards the individual.
It is important to understand what legal obligations are applicable to you. You may for example have withholding responsibilities or be required to pay social costs.
A person providing a service to someone without actually registering an activity. It could for example be someone helping the neighbour with their math exercises before a test for a small fee.
In Brazil, private individuals may not register their business right away, especially if they are dealing with small amounts of money. However, it is crucial to understand that formal registration becomes necessary as the business grows and becomes more like a proper business.
Yes, but conditions may apply. If certain thresholds are met, the influencer should register their activity as a sole trader or company.
Receiving compensation as an individual can be tricky and may sometimes raise concerns related to employment laws and taxation rules.
Therefore, it is quite common for influencers to register their activity as sole traders in their country of work. In fact, most countries have simplified systems allowing persons to register their activity in a quick and easy way. This allows influencers to invoice their clients and pay their taxes in a more streamlined way.
In Brazil, sole traders are commonly referred to as "empresário individual" or "trabalhador autônomo.” Sole traders are usually self-employed individuals in Brazil and are required to make contributions to the social security system and pay their own taxes.
You may read more about the registration process and the sole-traders on the following websites:
A sole trader is typically a self-employed person who owns and runs their own business as an individual. Sole traders usually benefit from a simplified system designed to make it easier to start a business.
Yes.
If the influencer is popular, it is not uncommon that they have a registered company and a whole team working with them (billing, project management, technical team, ...).
A company is typically a legal entity formed by a group of individuals to operate a business enterprise. It may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.
Yes.
Notwithstanding the above, it may be possible to receive compensation for influencer work without registering as a sole trader or company. Many countries have rules allowing individuals to receive compensation if certain conditions are met. However, it can be tricky sometimes to know if the activity can be classified as a hobby or not, therefore, when in doubt, it is almost always preferred to register as a sole trader to ensure compliance with applicable laws and regulations.
In Brazil, like many other countries, it is possible for individuals to receive compensation for their creative activities without the need for formal business registration. Determining whether these activities are considered hobbies or professional work can be complex and is often a matter of factors such as the regularity and scale of content generation, the intent to generate revenue, and the consistency of income. Even though it is possible to receive compensation without the formal establishment of a sole trader or corporate entity, it is important to be aware of the legal landscape, especially in a country like Brazil with a complex tax system.
Many influencers end up confused because they are unaware of their tax responsibilities and fail to pay the tax, or in some cases, pay more tax than necessary. This is also the case if you are conducting as a private individual and usually have higher tax rates than a company. Brazilian tax authorities, the Receita Federal, require precise income reporting, even when the money comes from what seems like casual hobbies. Not following these rules could lead to legal consequences and fines.
If it's unclear whether the activity is a hobby or a business, it is recommended to register the activity. Doing this helps set up a clear legal structure for their activities, plan their taxes effectively, and manage possible legal issues wisely.
To assess your responsibilities towards the influencer, it is necessary to define your relationship and follow a proper due diligence process catered to the status of the influencer and their country of activity. This may include requesting information about their name, TIN number, age, and more.
It may also be relevant to do some research about the influencer's followers in order to verify that their followers fit the kind of content or product you would like to advertise. This is especially important if the followers are young (e.g. it may not be appropriate to advertise alcohol to underage followers).
The most common payment method used to pay influencers in Brazil is PayPal and bank transfers or PIX.
Brazilian sole traders may invoice clients in Brazil and other countries. The sole trader may issue an invoice without VAT (also known as "ICMS" in Brazil) if the client is in Brazil (conditions apply). If the client is in the EU, the influencer will need to register for VAT and issue a VAT invoice.
Please note that the reverse charge system applies if the sole trader invoices a client in another EU country. You may read more about reverse charge here.
In Brazil, self-billing is not allowed. A potential solution is to work with a third-party billing service that can handle the invoicing process on behalf of the business if certain circumstanses are met. This can involve outsourcing a portion or all of the billing responsibilities to the service provider, which can help to ensure that invoices are accurate, timely, and compliant with relevant regulations. Businesses may outsource invoicing operations to a third party or to the customer if certain circumstances are met.
As a general rule, gifts are considered to be a form of compensation, and influencers should therefore always report the value of gifts, free travel, and vouchers to their tax authorities. The taxable value is usually based on the commercial value of the gift, travel, or voucher.
It is not uncommon for companies to be legally required to report to tax agencies when they pay out compensation to an influencer. Influencer partnerships are quite different from regular partnerships, compensation may not only include monetary compensation but also free gifts, vouchers, and travel. In some countries, all types of compensation sent for “payment” to the influencer should be reported. Therefore, it may be relevant to verify your reporting responsibilities on that matter.
As mentioned above, it is not uncommon for companies to be legally required to report to tax agencies when they pay out compensation to an influencer. This obligation may also be applicable if you are working with an influencer from another country. Many countries sign bilateral agreements in which they agree to exchange income statements with each other. This allows tax agencies around the world to have a better overview of the compensation paid out to the people conducting business in their country and better control over who should pay taxes or not. The exchange of income statements is especially relevant when paying out compensation to individuals without a registered activity. It is therefore important to verify your reporting obligations in your country. Brazil is known for its complex taxation system, with various many different taxes in place. Influencers operating in the country must be aware of their taxation obligations. Whether they're generating income through sponsored content or affiliate marketing, understanding the applicable taxes - such as ICMS, PIS, COFINS, and income tax, is essential. Staying informed and seeking professional guidance is crucial to ensure compliance with Brazil's intricate tax regulations and avoid potential legal issues.
Before drafting an agreement with an influencer, it is important to consider if the person has a registered activity as an influencer or a company. If the influencer is acting as an individual without any registered activity, it is essential to be aware of applicable rules and regulations, as you may have additional responsibilities towards the individual. It is important to understand what legal obligations are applicable to you. You may for example have withholding responsibilities or be required to pay social costs. It is important to be fully aware of all the responsibilities before drafting any agreement with an influencer as you may be able, depending on the applicable laws and regulations, to put some of the responsibilities onto the influencer if it is clearly stated in the agreement. It is also important to consider any potential liabilities arising from the agreement. As such, the responsibility of each party should be clearly described in the agreement and preferably regulate topics such as the payment of indirect and direct taxes, reporting to tax authorities, or even social costs.
In most countries, influencer marketing is already regulated by national laws such as consumer protection and marketing laws or specific guidelines.
Considering influencers can reach consumers globally, examining legal implications in various countries is important. Violating the rules can lead to penalties, fines, and legal fees.
It's important to note that there are topics that are usually more strongly regulated within influencer marketing. These commonly include:
Work on this is progressing quickly both on a national and a global level. It would therefore be wise to keep yourself updated on new laws and guidelines being issued on the topic.
In countries outside the EU, it is common to have a self-regulatory body that publishes guidelines regarding influencer marketing. In Brazil, influencer marketing is subject to regulations overseen by CONAR, which stands for "Conselho Nacional de Autorregulamentação Publicitária" or the National Council for Advertising Self-Regulation. CONAR is a self-regulatory body in Brazil that monitors and regulates advertising practices, including influencer marketing. They ensure that advertisements, including those on social media, meet ethical and legal standards.
CONAR's role involves examining influencer marketing content to ensure it complies with advertising and consumer protection laws. They look into issues such as transparency, disclosure of paid partnerships, and truthfulness in advertising. Non-compliance can result in sanctions and corrective actions.
Influencer marketing in Brazil, like in many other countries, faces particular scrutiny in areas related to minors, alcohol, religious beliefs, adult content, tobacco, cosmetic procedures, gambling products, and politics. Regulations in these areas may be more stringent to protect vulnerable audiences and uphold societal values. CONAR has published a guide for advertisements directed towards children and compared it to the rest of the countries in the world. The guide can be found here.
The regulatory landscape for influencer marketing is dynamic and can evolve rapidly, both on a national and global level. Staying informed about the latest laws and guidelines issued by CONAR and other relevant authorities is essential for influencers, brands, and marketers to navigate this rapidly changing industry. Failure to adhere to these regulations may lead to penalties and legal consequences.
If you are looking to collaborate with independent workers, it is essential to treat them as such. Influencers working independently should be treated differently from employees. It is crucial to provide them with creative and personal freedom, allowing them, for example, to choose and determine their own activities and working hours. To prevent a relationship that could be seen as an employment relationship, it is imperative to draft a clear agreement between the two parties. If the relationship is too close to an employment relationship, it may be viewed as false self-employment. This may come with legal implications for the brand. Without an unambiguous agreement, a clear distinction is not always easy; both influencers and those who use them are often unaware of how the relationship can be viewed by the authorities.
As a rule of thumb, the more instructions you give regarding the services to be performed and the more the person is bound to your organization, the more likely it is that an employment relationship exists. To ensure that your relationship with the influencer is as unambiguous as possible, it is important to make sure that the agreement that is established is fair and offers them the autonomy to choose their own activities and working hours. Also, the relationship should also be independent in facts not only on paper. This should allow for a successful collaboration. In the case of false self-employment, the brand or agency may be responsible for paying employer fees and social costs for the influencer.
An Agreement can take many forms and does not necessarily have to be in writing. However, it’s usually recommended to sign a written Agreement with the digital creator before they start to work on a project. We recommend having a legal professional review the agreement before it's signed, to ensure that it covers all the necessary legal aspects relevant to the relationship at hand. It may be relevant to define the following points in the agreement:
1. Define Compensation Structure and Amount
Begin by specifying the type and amount of compensation the influencer will receive for their services. This can be a flat fee, commission-based, or a combination of both. Be transparent about the compensation structure and ensure that the influencer understands whether they are considered an employee or an independent contractor, as this has tax implications.
2. Outline Payment Schedule and Currency
Establish a clear payment schedule that details whether the influencer will receive a one-time payment or multiple installments. Also, specify the currency in which payments will be made, and discuss potential fluctuations in exchange rates to avoid confusion or disagreements.
3. Specify Payment Terms for Content Creation and Sharing
One important consideration is whether payment should only be made upon delivery of the post or if there should be two separate fees, one for creating the content and another for sharing it upon approval by the Brand. Clearly state these terms in your agreement to ensure both parties understand when and how payments will be made for each aspect of the influencer's work.
4. Detail Payment Methods and Third-Party Involvement
Outline the method of payment, whether it's PayPal, wire transfer, or through a third party. If you're using a third-party service provider, such as Gigapay, to handle payouts and reporting, include this information in the agreement. This helps set expectations and ensures the influencer knows who will send the payment and when to expect it.
Want to know more about influencer partnership agreements? Use this guide to ensure your agreements cover all essential aspects and foster long-lasting, mutually beneficial relationships with your influencers.
With Gigapay you can start working with creator in a breeze. Forget about complicated KYC process and a long chain of approval. Simply upload your spreadsheets with the emails of who you would like to pay and we handle everything for you. We tank care of collecting all the necessary legal information in order for you to pay influencers.
With Gigapay you can start working with creator in a breeze. Forget about complicated KYC process and a long chain of approval. Simply upload your spreadsheets with the emails of who you would like to pay and we handle everything for you. We tank care of collecting all the necessary legal information in order for you to pay influencers.
With Gigapay you can start working with creator in a breeze. Forget about complicated KYC process and a long chain of approval. Simply upload your spreadsheets with the emails of who you would like to pay and we handle everything for you. We tank care of collecting all the necessary legal information in order for you to pay influencers.
With Gigapay you can start working with creator in a breeze. Forget about complicated KYC process and a long chain of approval. Simply upload your spreadsheets with the emails of who you would like to pay and we handle everything for you. We tank care of collecting all the necessary legal information in order for you to pay influencers.
Note: The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only.
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