Influencers, content creators to declare their income, says LHDN

The Inland Revenue Board (LHDN) has reminded individuals deemed as YouTubers, Instafamous personalities, influencers, or anyone earning income from paid reviews, to declare their income.

Speaking to Bernama Radio, LHDN principal assistant director Syed Mohd Syukree Syed Mohd Kamil said that anyone who receives payment for their content or services are considered to be running a business. As a result, a failure to report such income within the stipulated period would be considered a criminal offence and can lead to legal action.

Failure to submit an income tax return form may result in a fine of between RM200 to RM20,000, or imprisonment of up to six months, or both, upon conviction. This is based on section 112 of the Income tax act 1967. 

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The LHDN principal assistant director reportedly added that non-compliance could trigger a tax audit, which involves a detailed review of all business transactions and financial documents. He added that the process can be complex, time-consuming, and could negatively impact both the reputation and financial standing of the business. 

He warned that in order to avoid such a situation, business owners have to submit their income form B or e-B on the MyTax portal between 1 March to 15 July. Business owners are also reminded to maintain proper tax records for at least seven years as usual. He also said that fulfilling income reporting obligations enhances a business' credibility and reputation as it is seen to be more legitimate and responsible.

Additionally, Syed reportedly said that all business owners must declare their income, even if they are making a loss. He explained that taxpayers won't necessarily be taxed if their business is operating at a loss, but it depends on whether the individual earns other income such as a salary or payments for content or services. 

Last October, LHDN revealed that the incomes of influencers need to be included in the digital economy as macro-influencers with over 100,000 followers make a full-time career through paid social media and content creation. It added that micro-influencers with more than 10,000 followers are estimated to earn an average of five jobs promoting goods and services each month, according to Bernama. 

In May 2024, in a report by The Star, the Inland Revenue Board noted that more influencers and social media earners were coming forward to declare their taxes, driven by concerns over potential repercussions. The group saw a near four-fold increase from 390 files in 2023 to 1,250 last year. 

Join us this coming 21 May for #Content360, an extravaganza centered around three core thematic pillars: Challenging the norm; Conquering Media Fragmentation; and Unlocking Imagination. Immerse yourself in learning to curate content with creativity, critical thinking, and confidence with us at Content360!   

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