Social media and digital influencers in Malaysia are now required to declare all income, including payments, free products, gifts, or other perks received for promotions or reviews, under new guidelines from the Inland Revenue Board (LHDN).
The guidelines aim to help both the public and LHDN officers comply with tax laws, with the Director-General of Inland Revenue empowered under Section 134A of the Income Tax Act 1967 to issue, amend, or revoke these rules as needed.
LHDN stressed that influencers are a recognised profession, capable of generating substantial income through content creation, social media appearances, promotions, and related marketing activities. Income sources include direct platform payments, brand ambassador fees, merchandise sales, royalties, and other benefits.
Influencers are divided into two categories: individual influencers (such as politicians, artists, athletes, professionals, students, or homemakers) and object-based influencers (animated or fictional characters with social media followings).
Payments can take multiple forms: cash, goods, vouchers, free services, or social media engagement (e.g., “likes” with monetary value). Eligible expenses for tax deductions include internet costs, filming, and editing, while personal or capital expenses are not allowed.
Influencers must maintain records of all income and supporting documents for seven years for auditing purposes.
