February 6, 2023

Places and Foods

Family Lifestyle Food and Travel Blog

Are Sponsored Products and Media Trips Taxable in Malaysia?

2 min read

We are sure many bloggers, Instagrammers, Youtubers and social media influencers received sponsored products and media trips every year. We took the effort to make a trip to Inland Revenue Board (Lembaga Hasil Dalam Negara) to clarify many issues. Two of them are Sponsored Products and Media Trips Taxable in Malaysia?

We met with two Inland Revenue Board officers for this question. We had a lengthy chat as one of my intention is to ask about the LHDN’s Special Program for Voluntary Disclosure and some of the other questions. 

Sponsored products and media trips without any monetary gains are not taxable according to the Inland Revenue Board officers. According to them, this is a ‘grey area’ for them too. If you are paid for sponsored products or media trips, the monetary income is taxable.

For sponsored products like cosmetics or intangible products are not taxable if there is no monetary value is involved. However, we didn’t not ask what if you sold the products, the money you received could be taxable? We will probably visit the income tax office after my next trip to clarify some other issues and update this post.

Please take note that, if you have not declared your income from blogs or social media networks, they will come and look for you. What we know from our friends in media line is they have started to investigate celebrities and influencers could be next. Like Pokemon, the Inland Revenue Board will come and ‘catch ‘em all’.

The Special Program for Voluntary Disclosure is up to 1st April 2019 (not April Fool’s Joke). After this special program, the taxable penalty will be from 80% to 300%. Read more at http://www.hasil.gov.my/bt_goindex.php?bt_kump=4&bt_skum=1&bt_posi=1&bt_unit=1&bt_sequ=1&bt_lgv=2

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