THE Inland Revenue Board of Malaysia (LHDN) has introduced new guidelines requiring social media and digital influencers to declare all income earned from their online activities, including non-cash benefits such as free goods, services and gifts received for promotional or review purposes.
The move is aimed at strengthening tax compliance among influencers and providing clarity for both taxpayers and tax officers. LHDN said the Director General of Inland Revenue has the authority under Section 134A of the Income Tax Act 1967 to issue, amend or withdraw the guidelines at any time if necessary.
According to LHDN, a social media or digital influencer is an individual who has the ability to influence others on social media or in the digital sphere through authority, knowledge, position or relationships with users.
“Social media influencers are not only individuals who can influence others and have a large following; they are also capable of generating substantial income through their activities as influencers on social media and digital platforms.
“Social media influencers should be recognised as a profession because it is capable of generating income that arises and is received from social media platforms or from marketing activities resulting from their influence on social media.
“The activities of an influencer include producing audio, video or written content, appearing in programmes or social media events, being involved in product promotions and receiving payments, gifts or any form of benefit from any party as a result of their involvement on social media,” LHDN said.
The agency explained that influencers are divided into two main categories: individual influencers and object-based influencers. Individual influencers include politicians, artists, athletes, professionals, students and homemakers, while object-based influencers consist of any objects such as animated characters, fictional characters or characters created and registered on any social media platform with followers.
On the types of income subject to tax, LHDN said influencer earnings include direct payments from social media platforms, fees for serving as brand ambassadors, merchandise sales, the sale of influencer accounts or IDs on social media platforms, royalties from social media characters and other forms of income.
Influencers may receive payments through various arrangements, including management fees, talent fees, participation fees and consultancy fees.
“These payments may be received in the form of cash, goods, discount vouchers, free services, likes (emojis) and gifts or appreciation on social media that have monetary value.
“As for allowable expenses, social media influencers may claim expenses permitted under Section 33 of the Income Tax Act, including internet costs and expenses related to filming and editing materials, while personal or capital expenses are not allowed.
“Social media influencers must keep records of income received and supporting documents related to all income and expenses for audit purposes by LHDN, and such records and supporting documents must be kept for seven years from the end of the year in which the income tax return is submitted to the Director General of Inland Revenue,” it said. - January 19, 2026
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