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Influencer Marketing Compliance

What is the tax rate for influencers in Georgia?

Standard income tax is 20%, but registering as a Small Business Individual Entrepreneur can lower this to 1% for annual revenue under 500,000 GEL.

Can I use any song in my sponsored video?

No, for commercial (sponsored) content, standard social media music libraries may not cover the rights. You need a commercial sync license.

Are crypto promotions legal?

They are not banned, but promoting high-risk financial products requires strict adherence to consumer protection laws and clear risk warnings.

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Influencer Marketing Compliance is a comprehensive service helping brands and digital creators manage their activities in full compliance with Georgian legislation. This field combines tax, copyright, and advertising law issues. Many influencers operate informally, creating significant risks of tax disputes and fines. Additionally, brands hiring influencers are liable for the content of their campaigns. This service ensures that your marketing activities are not only effective but also legal.

The service includes full legal audit and support regarding:

  • Tax Compliance: Registering the influencer as a taxpayer (Small Business Status with 1% tax or Individual Entrepreneur), declaring income, and optimizing income tax.
  • Intellectual Property (IP) Clearance: Ensuring legal use of music, photos, and other content in posts (e.g., licensed music for TikTok).
  • Restricted Product Advertising: Consulting on which products have advertising restrictions (e.g., gambling, tobacco, certain financial schemes) and how to avoid violations.
  • Contest and Giveaway Regulation: Complying with lottery and gambling legislation when conducting giveaways on social networks.
  • GDPR and Data Protection: Collecting consumer data during marketing activities in compliance with the law.

A practical example: An influencer receives income from foreign brands via PayPal and does not declare it. Upon tax audit, they will be liable for the principal tax plus substantial fines. A lawyer would have helped them obtain "Small Business" status, allowing them to pay only 1% legally. Another example: A brand conducts a "Giveaway" with an expensive prize, which might be legally considered an unlicensed lottery, leading to fines.

In Georgia, this field is regulated by the Tax Code of Georgia, the Law on Copyright and Related Rights, and the Law on Organizing Lotteries, Games of Chance and Winning Games. Digital marketing is not the "Wild West"; strict state regulations apply here, especially regarding revenue.

The lawyer works with the client to create a safe operating model. This involves developing standard contracts, tax structuring, and periodic content monitoring. Legal.ge offers lawyers who understand the specifics of the digital economy.

Be a law-abiding creator. Protect your income and reputation with the help of Legal.ge professionals.

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