Influencers, Have You Paid Your Taxes?

Posted on February 24, 2020


You must be thinking do influencers pay tax? In recent years, becoming an influencer or an internet personality is becoming the norm with the Millennials and Gen Zs. So much so, that they can rake in profits and make it a full-time job. This means that you have to pay your income tax once you reach the taxable income of RM32,000 annually. 


Here are some of the baby steps you can take to declare your income and taxes!


  1. To register your tax file - You can either go to the nearest LHDN branch or register online by going to edaftar.hasil.gov.my

  2. To declare income - Go to the nearest LHDN branch together with; (1) Profit and Loss account, (2) Bank statement and (3) Copy of SSM (if registered)


See that wasn’t too hard, was it? By the way, registering your tax file and declaring your income doesn’t mean that you have to pay your tax! So don’t worry.


 Which expenses are tax-deductible and which are not?


Allowable:

  • Utilities (for business purposes only)

  • - The cost incurred from posting reviews on social media

  • - The cost incurred during the production of business income such as;

    • - Salaries/Wages

    • - Employee’s EPF/SOC

    • - Business Insurance (burglary/fire)

    • - Business premises rental

    • - Interest on business loans


Non-allowable:

  • - Domestic and private expenses such as personal electricity bill, water supply bill, children’s education fees, and depreciation)

  • - Purchases of personal assets (car, house, and furniture)

  • - Other costs for personal purposes


What can influencers write off on taxes? 

As an influencer, your job can require a wide variety of expenses. These may include (but are not limited to): 

  • - Computers, tablets, and smartphones 

  • - Cameras and other filming equipment  

  • - Editing software  

  • - Trademark and copyright fees 

  • - Stock photography subscriptions 

  • - Advertising and marketing costs

  • - Website

  • - Emailing service

  • - Home office space and supplies

  • - Travel  

  • - Mileage 


Are gifts in kind are taxable?

This includes products given for reviews;


How much is the tax rate for each income bracket?


Income Tax Rate

Category

Chargeable income (annually)

Calculations(RM)

Rate (%)

Tax (RM)

A

0,000 - 5,000

On the first 5,000

0

0

B

0,5001 - 20,00

On the first 5,000

Next 15,000

1

0

150

C

20,001 - 35,000

On the first 20,000

Next 15,000

3

150

450

D

35,001 - 50,000

On the first 35,000

Next 15,000

8

600

1,200

E

50,001 - 70,000

On the first 50,000

Next 20,000

14

1,800

2,800

F

70,001 - 100,000

On the first 70,000

Next 30,000

21

4,600

6,300

G

100,001 - 250,000

On the first 100,000

Next 150,000

24

10,900

36,000

H

250,001 - 400,00

On the first 250,000

Next 150,000

24.5

46,900

36,750

I

400,001 - 600,000

On the first 400,000 

Next 200,000

25

83,650

50,000

J

600,001 - 1,000,000

On the first 600,000

Next 400,000

26

133,650

104,000

K

Exceeding 1,000,000

On the first 1,000,000

Next ringgit

28

237,650

…………...

Tax Rate Table


The tax rate depends on your chargeable income. For further explanation on how to calculate chargeable income and how to refer to this table, please visit the nearest LHDN branch. 



What category does influencer’s income falls under and why it is different from a salary?


The income that influencers received falls under the Other Gain category (file OG). You need to submit Form B (Resident Who Carries On Business). 


Influencer’s income is different from salary because 

  • - They do not have an EA form

  • - The income is not fixed

  • - There is no employee-employer relationship in the contract

  • - They are entitled to deduct their expenses from their income received in Malaysia



Are International Influencers being paid from Malaysia taxed? What’s the tax rate?


For non-resident influencers, their income falls under these categories

  • - If they come to Malaysia under contract with the client and receive payment from Malaysia, then their income is considered taxable

  • - If they conduct the business outside of Malaysia but received money from the client in Malaysia, then their income is not taxable

SushiVid x LHDN Event! 


For more information on our event, scroll down at the bottom to read more about it and get your tickets. 

Founder of SushiVid, Foong Yuh Wen said “As a proud Malaysian and the CEO of an influencer marketing company, I feel that Malaysian influencers have progressed to reach sizable incomes in the past years. SushiVid is humbled to say we have paid over 2000 influencers in 4 years. I feel that it has been a long journey but the Income Tax Act is society’s way of admitting social media influencing is a profitable and professional career choice. Although influencer marketing is only at it’s budding stage, collectively if all our influencers pay RM1000 in income taxes a year, LHDN would be able to collect RM2,000,000! We could use it to further develop our country! This is the best part of starting a business - giving back to our country.” 


SushiVid has taken it upon themselves to host a complimentary workshop in collaboration with Lembaga Hasil Dalam Negeri (LHDN). The event will be officiated by the Director of Corporate Communication, Mr Hishamuddin Mohamed.


LHDN officials will be present on the event day to lend a helping hand to influencers with their tax paying process and claims. Seats are open to the first 100 influencers to participate via Eventbrite. Click on the picture above to join the event for FREE!


Want more information about your taxes as an Influencer?


You can visit the LHDN and proceed to the department in charge - Bahagian Kesedaran Cukai Jabatan Khidmat Korporat


Or


Contact them at


Hasil Careline: 1-800-88-5436 or 603-89111100 (overseas)