LHDN Malaysia – bloggers and influencers to pay tax starting 2016!

When I was in Singapore few months back, my fellow Singaporean influencers were in an uproar about being taxed.

As an active influencer myself I can relate only too well.

IMG_0840

I wouldn’t want to pay the government anymore than deemed necessary, and frankly, the rules of the taxation were a bit ridiculous.

I did however, at that point of time, knew that influencers’ taxation will happen and sooner than later, it will happen in Malaysia.

And so it has.
Today. 26th May 2016.

This is all I have as of now:

Seksyen 4 Akta Cukai Pendapatan 1967.

http://www.hasil.gov.my/pdf/pdfam/Media_23052016_PENJELASAN_CUKAI_PENDAPATAN_PERNIAGAAN_ONLINE.pdf

It is for REAL.
If you are an influencer/blogger/you make additional income from online transactions, you are subjected to this law.
As of 2016, you will have to get your affairs in order and be ready to pay tax by April/May 2017.
So what do we have to do?

I’m talking to my accountant and she will update me when she has more info in a few days.

Meanwhile the question of whether (1) food reviews (calculated as cost per head at the review), (2) the gadgets that you keep after a review, (3) the trips (flights, hotels, food, attraction fees) and (4) other products (dresses, shoes, cosmetics, skincare) will be taxable or otherwise is still unclear.

What we do know FOR SURE is; cash income is taxable.

Bloggers/Influencers: You need to open a new account at LHDN (if you do not already have one) and it will be the Borang e-B from your e-Filling.
Online business (registered company): you need to apply Borang e-P on e-Filling.

For example:

Your blog income should be treated as per your normal income.
Eg. Your salary is RM3,000/month.
Gross per annual income is 36,000 per annum. Then total received from YOUR blog is RM4000 per annum/or that particular yeat.
So, your total income is RM40,000.

Then only you minus EPF, SOCSO  you contributed and whatever else relief that you are entitled for.

You need to save your statements, records and receipts up to 7 years from this year onwards.
Since this is a new ruling, there will be more statements from LHDN on the tax structure and such.
For more information or enquiries, please visit www.hasil.gov.my

2015_lhdn_tax_table-1024x397

If you want to read the Guidelines on Taxation on Electronic Commerce in English, visit http://www.hasil.gov.my/pdf/pdfam/GUIDELINES_ON_TAXATION_OF_ELECTRONIC_COMMERCE.pdf

For those of you who might want to know how are the taxes like for SINGAPORE influencers, here we go:

Social Media Influencer_IRAS_SG-page-001

Social Media Influencer_IRAS_SG-page-002

Social Media Influencer_IRAS_SG-page-003

Social Media Influencer_IRAS_SG-page-004

Social Media Influencer_IRAS_SG-page-005

Will our Malaysians influencers/bloggers be taxed the same way?
Well, we are awaiting further news….

* NOTE:
Getting legal and accounting advice over the day so I’ll be updating this article again.

This Post Has 11 Comments

  1. Meitzeu

    It is a very useful post! Thank you Rebecca. 🙂

    1. Rebecca Saw

      Welcome dear!
      I’ve got some info from a friend who is knowledable in taxation so I’ll update this post soon!
      Meanwhile my company accountant will update me over the next few days on what needs to be done 😀

  2. cindyrina

    Oh! I thought just SG. Blogger becoming tedious part time hobby soon.

  3. Peter

    Hi Rebecca,

    Thanks for this informative article. You mentioned you will be updating this article. Or would it be that you will publish a new updated posts. Will like to be kept updated on this particular subject. How do I do that?

    1. Rebecca Saw

      So far my accountant has not found anymore details about this tax. So it is now only cash that is taxable. 🙂

  4. Peter

    Hi Rebecca,

    I vaguely remembered about server location as per online income in that if the servers are not located in Malaysia, then they are not taxable. Will this be correct?

    1. Rebecca Saw

      Thanks for your comment Peter!
      Well, as long as you are a Malaysian resident taxes applies I guess, even if your server isn’t in Msia.
      Most of us host via US anyways.

  5. Alvin

    Thanks for writing about this! Does the $ refer to Ringgit or SGD? And also are we only subjected to tax if our annual income is above 6k?

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