What Are Influencer Responsibilities As A Taxpayer in Malaysia?

March 14, 2020

About two to thirds population in Malaysia are on the Internet and statistics have shown a steady increase in the demand for digital marketing. Due to the rise in social media, influencer marketing becomes part of social media marketing or content marketing for connecting directly to consumers/ public. Being an influencer can be so lucrative as this can consider being a profession whether you are doing it as a full-time or part-time job.  Celebrities influencers, social media influencers who earn RM34,000 per year (estimate RM2,88833 per month) after EPF deductions from paid reviews, brand endorsements and business conducted via social media will have to pay their income tax. 

What Are Influencer Responsibilities As A Taxpayer in Malaysia? Recently SushiVid collaborates with Lembaga Hasil Dalam Negeri Malaysia (LHDN) to provide insightful tips and guidance to influencers to further understand their responsibilities and rights as Malaysian citizens on tax declaration and its benefits. 

How to file your income tax online? During the workshop, En. Hishamudin Mohamed, Director of Services explained the steps to declare the source of income and tips to fill up the Income Tax Return Form (ITRF).

1) Log in to LHDN Website and key in your identification number. The next step is key in your password. 

If you have forgotten your password, click on Forgotten Password. This link will take you to another page that will require you to key in your MyKad identification number, followed by your email address registered with IRB. A password reset link will then be sent to your email and from there you can create a new password.

2) Which forms to use? Click e- Form and select Form e-B/B: Individuals with business source (own & run a business)

3) Ensure all your basic individual details displayed are correct. In Record-Keeping section, referring to enough record-keeping that required according to ACP 1967. Click Yes if you fulfill the requirement.

4) Fill up the Statutory income, Total Income and Non-employment income of preceding years not declared. Statutory income from business is gains or profits from carrying on a business, trade, vocation, profession and every manufacture, adventure or concern in the nature of trade are liable to tax. The gains or profits include gross receipts from the sales of goods and services rendered such as by doctors or lawyers.

5) Fill up your tax reliefs, rebates and exemptions. Understand the tax reliefs available and identify which are applicable to you. Make sure you retain the proof of purchase or spending for the items you are claiming for up to seven years.
  • Self & Dependent – RM9,000
  • Medical expenses for parent(s) – RM5,000
  • Basic supporting equipment for disabled self, spouse, child, or parent – RM6,000
  • Disabled individual – RM6,000
  • Education – RM7,000
  • Medical expense for serious diseases – RM6,000
  • Complete medical examination – RM500
  • Lifestyle – RM2,500
  • Breastfeeding equipment – RM1,000
  • SSPN’s scheme in savings – RM6,000
  • Child care fees – RM1,000
  • Alimony payments – RM4,000
  • Disabled spouse – RM3,500
  • Ordinary child relief – RM2,000
  • Each unmarried child (18 years & above)
  • Receiving full-time education – RM2,000
  • Receiving further education in MY (award diploma or higher); outside of MY (degree or higher) – RM8,000
  • Disabled child – RM6,000
  • Life Insurance & EPF – RM6,000
  • Deferred Annuity & PRS (2012 – 2021) – RM3,000
  • Insurance for education OR medical – RM3,000
6) Fill up the particulars of Business income/ Financial particulars of individual (Main Business Only)

7) Once you have filled up all the reliefs and rebates, the system will automatically calculate your taxes and you will know if you have balance or excess in income tax payment.

8) The final step is to declare that all the information provided is true. Then, you need to electronically sign the form and send it in (Tandatangan & Hantar). If you have paid your income tax payment in excess via the monthly tax deductions, the excess amount will be reimbursed to you via the bank account details that you had provided.

Influencers will be allowed to claim for their business expenses and tax refunds wherever is applicable. Be sure to keep all the receipts or documents for 7 years. One way to reduce tax anxiety is to know what you need to do as an influencer to properly file your taxes. 

Thanks to Sushivid and LHDN for the meaningful workshop and create a industry transparency, to legitimize the engagement of influencer marketing in Malaysia. If influencers is hired by Sushivid, Sushivid will need to provide all the necessary details to the influencers to file their taxes. The workshop ended with a Q&A session to address the doubts influencers have on tax declaration and tax filing.

About Sushivid

SushiVid, founded by Yuh Wen Foong (currently the CEO) was built to solve one problem, provide opportunity for all influencers/ Key Opinion Leaders to achieve their dreams to create content that people love. A problem she once had as an actress, Wen found it hard to find opportunities in the space proactively - always waiting to be discovered passively. When opportunities do arise, she wouldn’t know how to price herself properly because of lack of transparency and information.

She recalls going for castings blindly not knowing what the job entails or what the client was looking for, and having immerse herself in the scene for two full years, she gave up her aspirations of becoming an actress because it was hard to survive. It inspired her to start an influencer marketing platform to help her fellow KOLs.

October 2015, SushiVid was founded. Since then, the company has been on a roll. We secured angel investors that November itself and by April 2016 we’d signed our first campaign deal with Hermo.my. The following year, SushiVid received Cradle’s CIP500 grant, attended the eStanford program by MaGIC as the market began warming up to influencer marketing. Find out more regarding Sushivid at https://www.sushivid.com/

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