Being an influencer in Malaysia now comes with clearer responsibilities and stricter expectations. Starting in 2026, social media and digital influencers must declare all income earned from their online activities, including free products, services and gifts received for reviews or promotions. These new tax guidelines reflect the government’s view that influencer work is no longer informal and should be treated as a legitimate income generating profession.
The guidelines were issued by the Inland Revenue Board of Malaysia (LHDN) to strengthen tax compliance and provide clearer guidance to both taxpayers and enforcement officers. LHDN has also stated that the Director General of Inland Revenue retains the authority to amend or withdraw the guidelines when necessary.
Influencer Work Is Officially Recognised as a Profession
According to LHDN, an influencer is an individual who can influence others through authority, knowledge, position or relationships on social media or digital platforms. This definition goes beyond follower count. What matters is the influencer’s ability to generate value and income through digital influence.
Influencer activities include producing video, audio or written content, appearing in programmes or events, participating in product promotions, and receiving benefits linked to online influence. Once income or benefits arise from these activities, they are considered taxable income.
New Tax Guidelines Make Free Gifts Part of Taxable Income
One of the most important clarifications concerns non cash benefits. LHDN has confirmed that influencer income is not limited to cash payments. Free goods, free services, discount vouchers, gifts and other benefits with monetary value must be declared.
For an influencer, this means complimentary skincare, hotel stays, sponsored services or appreciation gifts received in exchange for exposure are now treated as taxable income. If a benefit has value and is connected to influencer activity, it must be reported.
Different Types of Influencer Income
LHDN outlines several forms of influencer income, including direct payments from social media platforms, brand ambassador fees, merchandise sales, royalties, consultancy fees and the sale of influencer accounts or digital identities.
Income may be received through management fees, talent fees, participation fees or consultancy arrangements. Whether an influencer is paid in cash, goods or services, the income is treated the same for tax purposes.
Who Is Considered an Influencer
The guidelines divide influencers into two main categories. Individual influencers include politicians, artists, athletes, professionals, students and homemakers. Object based influencers include animated characters, fictional personalities or digital characters that are registered on social media platforms and have followers.
This means influencer taxation applies beyond traditional creators. Any influencer presence that generates income or benefits falls within the scope of the guidelines.
Allowable Expenses and Record Keeping
There is also clearer guidance on allowable expenses. Influencers may claim internet costs and expenses related to filming and editing content, provided these are directly connected to influencer activities. Personal expenses and capital expenses are not allowed.
Influencers must also keep full records of income and expenses for audit purposes. Supporting documents must be retained for seven years from the end of the year in which the income tax return is submitted.
New Guidelines Clarify Tax Rules and End the Free Gifts Loophole
These new rules highlight a broader shift in how the influencer economy is regulated in Malaysia. Influencer work is no longer treated as casual or secondary. It is recognised as a professional activity with clear tax obligations.
Source: here
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