KUALA LUMPUR, January 21 — Social media influencers in Malaysia are now required to declare income from their digital activities, including free gifts and digital tokens, under new taxation guidelines issued by the Inland Revenue Board (LHDN) and effective from Jan 14, 2026.
Issued under Section 134A of the Income Tax Act 1967, the guidelines formally recognise influencing as a legitimate income-generating profession and aim to clarify tax obligations in the rapidly growing digital economy.
The guidelines categorise taxable influencer income to include direct payments from social media platforms, brand ambassador and promotional fees, merchandise and digital product sales, royalties, paid appearances, and earnings from seminars, subscriptions and video views.
Importantly, non-monetary benefits such as sponsored products, discount vouchers, free services, and digital appreciation tokens with monetary value are also deemed taxable if received in connection with influencer activities.
LHDN further clarified that income earned from overseas platforms or foreign brands is taxable if the activities are conducted in or linked to Malaysia, regardless of where payments are made. The rules apply to both individual influencers — including athletes, artists and content creators,
And object-based influencers such as animated characters, virtual personalities or branded mascots with an online presence. Under the new directive, influencers must submit income estimates under CP500, make advance tax instalment payments, and maintain proper financial records for at least seven years.
While allowable deductions may be claimed for expenses wholly and exclusively incurred to generate income, LHDN stressed that transparency and compliance are essential as digital and creator-led industries continue to expand.
