The Employees Provident Fund (KWSP) shared guidance for social media influencers and content creators regarding their tax responsibilities in Malaysia. According to the article, income earned through digital platforms is taxable and must be declared to the Inland Revenue Board of Malaysia (LHDN).
Who is considered an influencer?
A social media influencer refers to individuals who influence audiences through digital platforms using their knowledge, expertise, or online presence. This includes content creators on platforms such as YouTube, TikTok, Instagram, Facebook, and similar channels.
Influencer income is taxable
KWSP explained that income earned from:
- Sponsored content
- Advertising revenue
- Affiliate marketing
- Brand collaborations
- Paid reviews
- Digital platform monetisation (e.g. Google AdSense)
is generally treated as business income under the Malaysian tax system and must be declared using Form B.
The article also clarified that income received from overseas platforms such as YouTube or TikTok may still be taxable in Malaysia if the influencer is a Malaysian tax resident and the income relates to activities carried out in Malaysia.
Tax registration and MyTax access
For Malaysians holding MyKad, MyPR, or MyKAS, the identification number automatically functions as the Tax Identification Number (TIN). However, first-time taxpayers must activate their Digital Certificate via the MyTax portal before accessing e-Filing services.
Claimable business expenses
Influencers may claim tax deductions for expenses directly related to generating income, such as:
- Equipment and devices
- Internet and phone bills
- Editing software subscriptions
- Advertising and marketing expenses
- Travel costs related to content creation
If an expense is partly personal and partly business-related, only the business portion is claimable. Taxpayers are advised to keep receipts and records for at least seven years.
EPF and tax relief benefits
Self-employed influencers can still enjoy tax relief through:
- EPF voluntary contributions (up to RM4,000)
- Life insurance or takaful contributions (up to RM3,000)
KWSP also highlighted that EPF dividends are tax-exempt, allowing contributors to grow retirement savings more efficiently.
CP500 instalment payments
Some influencers may be required by LHDN to pay taxes through the CP500 instalment scheme, where estimated taxes are paid throughout the year instead of a lump sum during tax filing season.
Filing deadline
For YA 2025:
- 30 June 2026 – Manual Form B submission
- 15 July 2026 – e-Filing submission
KWSP encouraged taxpayers to file early to avoid penalties and ensure smoother tax management.
To know more, refer here.