Influencers or 'influencers' in Malaysia are called to pay income tax even if they do not receive regular payments like individuals with a fixed monthly income.
According to the Assistant Director of the Malaysian Inland Revenue Board (IRB), Rohaizad Abd Fandi, influencers must comply with tax regulations even if their income does not exceed the threshold value.
The threshold value refers to the total income level that differentiates a person from having to pay tax or not, based on different status categories.
Influencer income is part of the digital economy, where influencers with more than 10,000 followers, known as micro-influencers, can carry out some promotional work every month.
On the other hand, macro-influencers with more than 100,000 followers can earn much more through full-time brand promotion.
Influencers may fall under the business income category and must file their tax return using Form B through the e-Filing system.
Tax-related documents, including business records, invoices and agreements, must be kept for seven years. Failure to do so may result in fines or imprisonment.
However, influencers can also reduce their taxable income through various deductions.
Rohaizad emphasized further that compliance with tax laws is not just a legal responsibility but also a contribution to the development of the country.
He encouraged influential people to show the importance of tax compliance to the community as a good example.
