The Malaysian Inland Revenue Board issued comprehensive tax guidelines on January 14, 2026, establishing formal treatment of income earned by social media influencers under the country’s Income Tax Act 1967.
The guidelines define social media influencers as individuals who have the power to influence others through their authority, knowledge, position, or relationship with users, and recognize influencer activity as a legitimate career generating taxable income.
Income Classification and Scope
The guidelines classify influencer income as business income taxable under paragraph 4(a) of the Income Tax Act, treating it as income from exercising a profession. This applies to Malaysian residents regardless of whether payments originate from domestic or international platforms.
“Income received from operators of social media which are based outside Malaysia such as Google Adsense and Instagram is an income that is deemed to be derived and accrued in Malaysia,” the guidelines state, noting that activities performed in Malaysia make foreign platform payments taxable domestically.
The tax authority identified two influencer categories: individual influencers spanning various backgrounds, including politicians, artists, athletes, and content creators; and object-based influencers, consisting of animated characters, live-action characters, or created symbols with social media accounts operated by copyright holders.
Revenue Sources
The guidelines outline seven primary revenue categories subject to taxation. These include direct payments from social media platforms based on clicks, followers, views, uploaded content, displayed advertisements, and subscription commissions; compensation as product ambassadors; revenue from branded goods sales, including digital products; proceeds from social media account sales; royalty payments for character usage; and fees from training programs, seminars, competitions, and event appearances.
Payments may be made in cash or by non-cash means, including goods, services, facilities, vouchers, discounts, or gifts of monetary value. The guidelines specify that non-cash payments constitute taxable income and require declaration, even in the absence of formal contracts.
Allowable Deductions
Influencers may claim business expenses wholly and exclusively incurred in producing gross income under subsection 33(1) of the Income Tax Act. Allowable expenses include internet access costs, content production expenses for filming and editing, and other direct income-generation costs.
The guidelines prohibit deductions for some expenses under Section 39. Section 39 covers personal expenses, some capital expenses, and expenses not “wholly and exclusively” for income. The section prevents influencers from deducting lifestyle costs or big asset purchases as business expenses, even when those costs are loosely connected to content creation. Influencers qualify for capital allowances under Schedule 3 for equipment purchases meeting specified requirements.
Compliance Requirements
Influencers must make estimated tax installment payments under Section 107B when income is derived from sources beyond employment. The tax authority bases installment payments on the prior year’s tax liability, with payments due within 30 days of notice.
Record-keeping requirements require retaining income receipts and supporting documents for seven years from the date of tax declaration submission.
The guidelines note that influencers with both employment and influencer income will have separate tax treatment for each income source, as employment income remains subject to scheduled tax deductions.
Jonathan is a South African content creator, photographer and videographer with 25 years of experience in journalism and print media design. He is interested in new developments in AI content creation and covers a broad spectrum of topics within the creator economy.
The Malaysian Inland Revenue Board issued comprehensive tax guidelines on January 14, 2026, establishing formal treatment of income earned by social media influencers under the country’s Income Tax Act 1967.
The guidelines define social media influencers as individuals who have the power to influence others through their authority, knowledge, position, or relationship with users, and recognize influencer activity as a legitimate career generating taxable income.
Income Classification and Scope
The guidelines classify influencer income as business income taxable under paragraph 4(a) of the Income Tax Act, treating it as income from exercising a profession. This applies to Malaysian residents regardless of whether payments originate from domestic or international platforms.
“Income received from operators of social media which are based outside Malaysia such as Google Adsense and Instagram is an income that is deemed to be derived and accrued in Malaysia,” the guidelines state, noting that activities performed in Malaysia make foreign platform payments taxable domestically.
The tax authority identified two influencer categories: individual influencers spanning various backgrounds, including politicians, artists, athletes, and content creators; and object-based influencers, consisting of animated characters, live-action characters, or created symbols with social media accounts operated by copyright holders.
Revenue Sources
The guidelines outline seven primary revenue categories subject to taxation. These include direct payments from social media platforms based on clicks, followers, views, uploaded content, displayed advertisements, and subscription commissions; compensation as product ambassadors; revenue from branded goods sales, including digital products; proceeds from social media account sales; royalty payments for character usage; and fees from training programs, seminars, competitions, and event appearances.
Payments may be made in cash or by non-cash means, including goods, services, facilities, vouchers, discounts, or gifts of monetary value. The guidelines specify that non-cash payments constitute taxable income and require declaration, even in the absence of formal contracts.
Allowable Deductions
Influencers may claim business expenses wholly and exclusively incurred in producing gross income under subsection 33(1) of the Income Tax Act. Allowable expenses include internet access costs, content production expenses for filming and editing, and other direct income-generation costs.
The guidelines prohibit deductions for some expenses under Section 39. Section 39 covers personal expenses, some capital expenses, and expenses not “wholly and exclusively” for income. The section prevents influencers from deducting lifestyle costs or big asset purchases as business expenses, even when those costs are loosely connected to content creation. Influencers qualify for capital allowances under Schedule 3 for equipment purchases meeting specified requirements.
Compliance Requirements
Influencers must make estimated tax installment payments under Section 107B when income is derived from sources beyond employment. The tax authority bases installment payments on the prior year’s tax liability, with payments due within 30 days of notice.
Record-keeping requirements require retaining income receipts and supporting documents for seven years from the date of tax declaration submission.
The guidelines note that influencers with both employment and influencer income will have separate tax treatment for each income source, as employment income remains subject to scheduled tax deductions.
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