The statutory body has published new guidelines on the tax treatment of income earned by social media influencers, effective Jan 14. The key message is simple: influencer earnings must be declared – and that includes non-cash perks like freebies and gifts.
Before panic sets in, this isn’t a brand-new influencer tax. It’s more of a long-overdue update on how existing tax rules apply in a world of reels, reviews, and sponsored posts.
Whom does it apply to?
The guideline covers social media and digital influencers – basically, people (or entities) who can influence audiences through their reach, authority, knowledge, or relationship with followers, and earn from that influence.
It’s not limited to full-time creators: the guideline notes it can include a wide range of people who monetise influence online – from artistes and athletes to professionals, students, homemakers, and part-timers who do brand work on the side.
In other words, you don’t need a million followers to be on the radar. If you’re consistently getting value because you promote, review, feature, or drive attention, you’re part of the equation.
What counts as income?
LHDN makes it clear that influencer income can come in many forms, including:
- paid brand collaborations and sponsorships;
- affiliate commissions;
- platform or creator-programme earnings;
- sales of merchandise or personal brands;
- free products, vouchers, or services received in exchange for promotion.
That means “gifted” items can be taxable if they’re part of a promotional arrangement.
But it was a gift… right?
Here’s the line the revenue board is drawing. If your aunty gives you a handbag, it’s a gift. If a brand gives you something because you’re expected to post, tag, review, or promote, it’s a benefit arising from work.
So, that free skincare set followed by an Instagram reel and discount code falls squarely in this category.
Here are some other real-life influencer examples:
1. The ‘RM0 invoice’ PR package
You receive skincare, makeup, a phone accessory, or shoes. You post an unboxing and tag the brand. The guideline takeaway? Freebies tied to promotions should be declared as income/benefit.
2. The ‘Free Stay in Exchange for Reels’ hotel deal
The resort comps your room and breakfast, and in return, you deliver content. LHDN expects you to declare non-cash benefits (free services) linked to promotional work.
3. The part-time creator with a full-time job
You’re salaried from Mondays to Fridays, but you do paid reviews on weekends. The guideline coverage stresses it’s not only for full-time influencers – what matters is income or benefits earned through influence activities.
4. You earn in ‘mixed forms’
A campaign pays you RM2,000 plus a “bonus” phone. Both cash and non-cash components matter – and both should be tracked and declared appropriately.
The boring bits
LHDN expects influencers to keep documentation and details of non-cash items received, with records generally kept for seven years. These include:
- contracts/emails/DMs confirming deliverables;
- invoices issued and proofs of payment;
- screenshots of campaign terms;
- notes on what you received (cash amount, item description, service received);
- anything that helps you justify values and timing if questions come later.
Finally, a quick checklist
If you’re monetising your online presence:
- track all income streams;
- don’t ignore freebies tied to promotions;
- save receipts, screenshots, and agreements;
- get professional advice if your creator income is growing.
Because in 2026 Malaysia, the golden rule is simple: if your influence earns you something, the revenue board wants to know about it.