Social media influencers in Malaysia must now declare all income earned from online activities under new taxation guidelines issued by the Inland Revenue Board (LHDN). The guidelines took effect on 14 January 2026 and formalise how influencers must report income generated through content creation, promotions, and brand collaborations for tax purposes.
LHDN says the rules apply to anyone who influences others through digital platforms and receives income or benefits from that influence. This group includes not only full-time content creators, but also athletes, artistes, professionals, students, homemakers, and other individuals who earn from social media activities. The authority also recognises “object-based influencers”, such as animated characters or branded mascots with social media followings, as taxable entities.
Under the guidelines, influencers must declare non-monetary benefits received in exchange for promotions or reviews if those benefits carry monetary value. These include free products, sponsored services, discount vouchers, digital gifts, and platform-based appreciation tokens that can be assigned a value.
LHDN also clarified that income earned from overseas platforms or foreign brands remains taxable if influencers conduct their activities in Malaysia or closely link them to the country. As a result, receiving payments from abroad does not automatically exempt influencers from Malaysian income tax obligations.
The guidelines also outline allowable expenses that influencers can claim under Section 33 of the Income Tax Act 1967. These include work-related costs such as internet subscriptions, filming equipment usage, and editing expenses. However, personal and capital expenses remain non-deductible.
To ensure compliance, influencers must submit income estimates (CP500), pay advance tax instalments, and maintain complete records of income and expenses for at least seven years for audit purposes. LHDN issued the guidance under Section 134A of the Income Tax Act, which gives the Director-General of Inland Revenue the authority to amend or withdraw the guidelines when necessary.
Quick Breakdown:
- Who is affected:
Individual influencers (including creators, athletes, artistes, and professionals) and object-based influencers such as animated characters (including VTubers etc)or mascots.
- What income is taxable:
Cash payments, brand ambassador fees, merchandise sales, royalties, paid appearances, subscriptions, and platform payouts.
- Non-cash items still count:
Influencers must declare free products, gifts, vouchers, sponsored services, and digital tokens with monetary value.
- Overseas income:
Taxable if the influencer’s activities are carried out in or linked to Malaysia, even if payments come from abroad.
- What expenses can be claimed:
Work-related costs like internet, filming, and editing expenses, subject to existing tax rules.
- Compliance requirements:
File CP500 estimates, pay instalments, and keep income and expense records for at least seven years.
(Source: NST / The Edge Malaysia)
