PETALING JAYA: Social media or digital influencers, who get free products and gifts for reviews, should declare all their income and pay taxes – but it should not be a form of punishment, say creators.
Content creation, they say, is seen as a real profession now, so it makes sense that it is treated like any other job.
“At the end of the day, I think the bigger conversation is recognising content creation as a legitimate profession,” said Ceddy Ang, a food influencer and content creator.
“However, I think the execution needs more clarity. Not all gifts are income-generating.”
“Sometimes brands just send products with no obligation to post, no contract, no deliverables.
“If everything is automatically considered ‘income’, that becomes difficult and also quite unfair,” he said.The Inland Revenue Board (LHDN) had announced on Jan 19 that, under new guidelines, influencers have to declare all their income, including gifts.
Ang said he treats his work as a business by engaging an accountant.
Digital duty: (From left) Fedtri, Nithyaa and Ang recognise content creation as a legitimate business and are calling on LHDN for clearer guidelines and better tax education.
“I keep proper records of my income, invoices, contracts and expenses. It’s important because once you reach a certain level, you can’t afford to be careless.
“But not all influencers are that organised, especially those who start off as hobby creators and suddenly get brand deals.
“Many don’t realise they should be tracking income, saving for taxes, or separating personal and business finances. So I think education is very important here. Instead of only enforcement, there should also be more guidance on how creators can do proper bookkeeping,” he said.
Content creator and makeup artist Nithyaa RV said the guidelines are fair as long as they are clear and applied to everyone equally, as influencers also earn income like any other business and profession.
“But it (guidelines) should be explained properly because many influencers are not finance experts. Influencers now need to set aside money for taxes, and also be more careful with pricing.
“Some may need to increase rates slightly to cover extra costs,” she said, adding that she tracks all payments, invoices, and expenses monthly.
Nithyaa said many influencers do not properly track income at the beginning, especially as it comes from many small jobs. Once income grows, tracking becomes necessary.
TV personality and lifestyle content creator Fedtri Yahya said most influencers do not have a fixed or permanent job, so LHDN needs to make the guidelines and requirements clearer.
“They have to make it fair, especially for creative and freelance income which can be irregular and harder to track than salaries.
“In the future, I think there will be changes in how brands engage with us.
“LHDN should give us more time as well as support by providing meet-and-greet sessions to explain about tax, accounting and related matters,” he said.
