Bern
CHF (₣)
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. In Switzerland, there are different “cantons” which are small states within the country, and the rules may differ depending on which canton the influencer is based in.
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.
Yes, but conditions may apply. If the activity is not viewed as a hobby or 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.
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.
In Switzerland, the term for sole traders may differ depending on which part of Switzerland you live in. Sole traders are called "Einzelunternehmen" in German, "entreprise individuelle" in French, and "ditta individuale" in Italian.
The sole traders are able to issue invoices and sell goods and services. They pay their own social fees and taxes.
You can read more about the sole traders and how to register on the Swiss Federal Tax Administration website here:
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 Switzerland, rules differ depending on which canton you live in. Generally, conducting a hobby is tax-free and there are certain criteria that need to be met in order to not be considered a hobby. Those are usually: work at own account and risk; intention to make a profit; use of labor and capital; freely chosen organization; planned and externally visible participation in economic transactions, and multiple customers.
In practice, what is common, is the fulfillment of one or two of the criteria to be considered a profitable activity for the tax authorities and your activity will not be considered a hobby anymore. As long as an activity remains a personal pursuit without the primary objective of generating income, it would most likely fall under the category of a hobby. Yet, when the intention shifts towards profit, individuals are obligated to register their activity as soon as possible. Switzerland's taxation system distinguishes between hobbies and profit-driven enterprises, emphasizing the importance of accurately defining the purpose of pursuits.
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).
When working with influencers in Switzerland, it is important to check whether or not the influencer is registered if they conduct such activities on a regular basis. If they are not registered they may be considered as employees and the brand may have withholding responsibilities.
The most common payment method used to pay influencers in Switzerland is bank transfers and TWINT followed by PayPal.
Swiss sole traders may invoice clients in Switzerland and other countries. They may also issue an invoice without VAT if the client is based in Switzerland. 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 country. You may read more about reverse charge here.
In Switzerland, businesses may outsource invoicing operations to a third party or to the customer if certain circumstances are met. You may use self-billing or if the parties have agreed to use self-billing prior to issuing the invoice. The agreement should preferably be in writing and specify the terms applicable to the self-billing invoice.
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.
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.
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.
Swiss advertising regulations do not include explicit provisions addressing influencer marketing. However, advertising on social media platforms, including influencer marketing, falls under Swiss advertising law. This is applicable when the collective impression of the online presence, such as the relevant website or social media account, is targeted at the Swiss audience. Swiss advertising law does not distinguish the difference between traditional advertising and online advertising.
Advertising in Switzerland (especially towards end consumers) is particularly regulated, for example for the following:
The Swiss Federal Tax Office has a guide on advertisements specifically for alcohol, which can be found here.
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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Explore our guides detailing the dos and don'ts of influencer regulations. Ensure your influencer partnerships comply with the latest international regulations.
