KUALA LUMPUR – The Inland Revenue Board (LHDN) has officers keeping tabs on local social media influencers and those using digital interaction platforms for sales to ensure they file income tax, the board’s chief executive officer said.
Datuk Abu Tariq Jamaluddin said LHDN has seen tax compliance among influencers increase in recent years, thanks to “nudging” exercises by way of email reminders to those making a living on social media, he said in an interview with The Star.
In 2023, LHDN had 390 tax files on influencers, and the number increased to 1,250 as of April this year.
In terms of collections, Abu Tariq said LHDN collected RM5.144 million from 450 files in 2020, and RM5.734 million from 507 files in 2022.
“Each state has a unit with officers monitoring local influencers or those offering sales on TikTok or Instagram. Our officers also send out official emails to the individuals concerned to advise them to comply,” Abu Tariq told The Star.
Last year, a survey attributed to marketing firm Envisage Media Solutions found that influencers with up to 50,000 followers earned an average income of RM10,000 to RM15,000 per month. Those with more than 500,000 followers can make upwards of RM50,000 a month.
Influencer marketing company, SushiVid Sdn Bhd, meanwhile, states that mega influencers (those with more than 500,000 followers) reap estimated total earnings of between RM9 million and RM24 million per year. In Malaysia, there are around 100 influencers in this category.
The bulk of influencers, around 9,000 people, are in the “nano” category with between 1,000 to 10,000 followers. SushiVid estimates they can earn from RM10.8 million and upwards per year, depending on activity level. – May 27, 2024