Internet celebrities are subjected to paying income tax
It is reported that social media influencers who earn more than RM 5,000 a month from paid reviews, sponsored content or online business via social media are subjected to paying income tax.
Since the activities of doing paid reviews and brand endorsements can generate income, it has been classiffied as a profession therefore they will need to be taxed.
They can detect the individuals who fail to declare their earnings. Hence, the companies that hired them need to declare their company’s revenue and also disclose information about the ambassadors or vendors that they hired.
Minors are not exempt from paying tax too
According to the Income Tax Act 1967, minors who earn within the taxable bracket are subjected to paying income tax. Parents are responsible
Even so, influencers will be allowed to claim for business expenses and tax refunds wherever applicable as well considering it’s now a legit business model.
So influencers make sure you pay your income tax and set a good example to your followers. Otherwise, you will be in big trouble for evading your taxes!