NEWS
Instafamous People And Influencers, Get Ready To Pay Income Tax!
If you think updating your Instagram or social media accounts is something almost everyone does on a daily basis so that they can update everyone about their life or to kill time, well, some people actually take it seriously – in fact, they make a career out of it.
Few years ago, you’d probably laugh if someone said that being a social media influencer or Instafamous is their full-time job. Obviously, times have changed, and some of these influencers could earn up to five or six figure incomes a month.
And if you know someone who’s making money from it, it’s time to tell them that they will have to start paying income tax.
Harian Metro reported that internet celebrities or figures (including those who are underage) who earn more than RM5,000 a month from paid reviews, sponsored content, or online business via social media are subjected to paying income tax.
Since the activities above can generate income, it has been classified as a profession therefore they will need to be taxed.
Inland Revenue Board (LHDN) Chief Executive Officer Datuk Seri Sabin Samitah said these online celebrities or influencers should visit LHDN’s office to seek advise on how to declare their earnings and calculate their taxes.
“We can detect the individuals who fail to declare their earnings when the companies that hired them for their social media services declare their company’s revenue. By doing so, the companies will also disclose information about the ambassadors or vendors that they hired,” Sabin said.
And if you feel that it’s weird that a kid should be paying taxes, according to the 1967 Income Tax Act, underage children who earn within the taxable bracket are subjected to paying income tax. Their parents are responsible in declaring their earnings on their behalf.
So influencers, make sure you pay your income tax since impressions are important in your business and you’d also want to set a good example to your followers. You definitely don’t want to go viral for evading your taxes!