Cukai Influencer Malaysia: LHDN Guidelines, Income Types & Tax Rules Explained

Influencer tax has become an important topic in Malaysia after Lembaga Hasil Dalam Negeri Malaysia (LHDN) released official guidelines on how income earned by influencers or pempengaruh should be taxed.

According to LHDN, influencers must declare all types of income, including:

Cash payments
Free products
Gifts
Vouchers
Benefits received from promotional or marketing activities

These guidelines apply to influencers across all digital platforms such as Instagram, TikTok, YouTube, Facebook, X and others.

What Is an “Influencer” According to LHDN?

Based on LHDN’s definition, an influencer (pempengaruh) is an individual who can influence others through digital or social media using:

Personal influence
Knowledge or expertise
Social status or reputation
Relationship with followers or audience

An influencer is not only someone with many followers. Anyone who earns income from digital content or online promotion is considered to be doing commercial activity and therefore subject to income tax.

Activities Considered as Influencer Activities

You are considered an influencer if you are involved in activities such as:

Creating, recording or uploading video, audio or written content
Appearing in online shows, events or livestreams
Promoting or advertising products or services
Receiving payment, gifts or benefits from social media activities

All these activities are treated as income-generating activities and are taxable.

Influencer Categories According to LHDN

LHDN classifies influencers into two main categories.

Individual Influencers

This includes:

Politicians
Artists and celebrities
Athletes and sports personalities
Professionals
Students
Housewives
Content creators

Object-Based Influencers

This refers to accounts based on:

Animated or cartoon characters
Fictional or acting characters
Logos, brands or symbols

These accounts may be managed by individuals or companies that own the intellectual property rights.

Types of Influencer Income Subject to Tax

1. Income from Social Media Platforms

Examples include:

Payment based on views, likes or clicks
Follower-based income
Advertising income such as Google AdSense
YouTube, Facebook or Instagram monetisation
Subscription or membership income
advertising income such as Google AdSense
YouTube, Facebook or Instagram monetisation
subscription or membership income

2. Paid Reviews and Brand Ambassador Fees

Income received as:

Cash payment
Free products
Vouchers or discounts
Free services
Accommodation or travel benefits

If it has monetary value, it is taxable.

3. Sales Income

Including:

Speaking engagements
Seminars and workshops
Podcast or talk show appearances
Judging or facilitation fees
Event appearance fees
Digital gifts, tokens or emojis with cash value

Income from Overseas – Still Taxable?

Yes. Influencer income is taxable in Malaysia if:

The influencer is resident in Malaysia
The activity relates to a profession carried out in Malaysia
Payment is received or credited into a Malaysian bank account

Even if filming or content creation is done overseas, the income may still be considered as income derived from Malaysia under Paragraph 4(a) of the Income Tax Act 1967.

Allowable Expenses for Tax Deduction

Under Section 33 of the Income Tax Act 1967, influencers may deduct expenses that are:

Wholly
Exclusively
Incurred in producing income

Examples of allowable expenses:

Internet subscription fees
Video recording costs
Photography costs
Editing and production expenses

Expenses Not Allowed

Personal expenses
Private lifestyle expenses
Capital purchases

Assets such as cameras, phones and computers can only be claimed through Capital Allowance (Schedule 3 of the Act).

Tax Instalment Payment – CP500

Influencers with business income may receive a CP500 Notice under Section 107B of the Income Tax Act.

CP500 is an estimated tax instalment payment and:

Is paid every two months
Does not include employment income already deducted under PCB

Record Keeping Requirement

Influencers are required to keep proper records of:

Income received
Expenses incurred
Supporting documents

All records must be kept for seven (7) years from the end of the year the tax return is submitted.

Example: Influencer Tax Calculation (Simple Illustration)

Below is a basic example to help influencers understand how income tax is generally calculated. This example is for reference only. Actual tax payable depends on individual tax reliefs and LHDN assessment.

Example Scenario

An influencer earns income from multiple sources in one year:

Income Source	Amount (RM)
Brand collaborations	60,000
Platform monetisation (YouTube / TikTok)	25,000
Affiliate commission	15,000
Total Gross Income	100,000

Step 1: Deduct Allowable Business Expenses

Allowable expenses under Section 33 ITA 1967:

Expense	Amount (RM)
Internet subscription	2,400
Video & photography cost	5,000
Editing & software tools	2,600
Total Allowable Expenses	10,000

Net Business Income:

RM100,000 − RM10,000 = RM90,000

Step 2: Apply Personal Tax Reliefs (Example)

Relief Type	Amount (RM)
Individual relief	9,000
EPF contribution	4,000
Lifestyle relief	2,500
SOCSO	350
Total Reliefs	15,850

Step 3: Chargeable Income

RM90,000 − RM15,850 = RM74,150

Step 4: Estimated Income Tax Payable

Based on Malaysia resident tax rates (progressive system):

Estimated tax payable ≈ RM4,700 – RM5,200

(Actual amount may differ depending on updated tax rates and additional reliefs.)

Important Notes

Free products and gifts must be included at market value.
CP500 instalment payments may apply if business income is ongoing.
Final tax payable is confirmed only after submission via MyTax e-Filing.

Influencer income is treated as taxable income under Malaysian tax law. Whether income is received in cash, free products or digital gifts, it must be declared to LHDN.

Understanding the guidelines early helps influencers stay compliant, avoid penalties and manage their tax obligations properly.

For official updates, always refer to the LHDN Official Portal.

Digital Economy – Tax for Influencers

For full details on digital economy taxation, please refer to the official PDF issued by LHDN.

LHDN Guidelines – Influencer Tax

Download the official LHDN guideline PDF for complete explanation and reference.

Frequently Asked Questions (FAQ)

Do small influencers need to pay tax?

Yes. Even micro or part-time influencers must declare income if they receive payment or benefits with monetary value.

Are free products considered taxable income?

Yes. Free products, gifts or services received in exchange for promotion are taxable based on their market value.

What if I only do influencing part-time?

Part-time influencers are still required to declare income if they earn from digital activities.

Do I need to register a business as an influencer?

It depends on income level and business structure. Many influencers register as sole proprietors for tax reporting purposes.

What happens if influencers do not declare income?

Failure to declare income may result in:

Tax penalties
Additional tax
Late payment charges
Possible legal action by LHDN

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