In this course · 6 of 7
Course 3
Tax on your online income
7 lessons · 7 min
- 1Is Online Selling Income Taxable in Malaysia, Even Part-Time?
- 2Form B or Form BE for Online Sellers in Malaysia: Which and When Due?
- 3Sdn Bhd Online Store Tax Return: Form C Deadline in Malaysia
- 4Sole Proprietor vs Sdn Bhd Tax Rates for Online Sellers in Malaysia
- 5What Business Expenses Can an Online Seller Claim for Tax in Malaysia?
- 6Is TikTok Shop Affiliate Commission Taxable in Malaysia?
- 7Late Tax Filing Penalty for Online Sellers in Malaysia
The short answer
Yes. TikTok Shop affiliate and creator commissions are taxable in Malaysia. The Inland Revenue Board (LHDN) guideline of January 2026 treats income from social media, including commissions and sponsorships, as taxable under the Income Tax Act 1967. A creator without an employer usually declares it on Form B.
LHDN issued a guideline in January 2026 on the tax treatment of income earned by social media influencers. Its position is that income from social platforms is taxable under the Income Tax Act 1967 in the same way as other income.
What this covers in practice
- Affiliate commissions from marketplace programmes.
- Fees for sponsored posts and paid reviews.
- Platform payouts for content.
- Free products and similar benefits received for promotion may also need to be assessed; the guideline sets out how.
How to declare. A creator who runs the activity as a business files Form B with a profit computation. Expenses incurred to earn the income, such as equipment used for the shoot, internet, editing software and a reasonable share of studio space, may be deducted subject to the usual rules.
Mixed income. A person who is also an employee declares salary and the creator income together on the same return.
Where the seller is also the creator. Selling on TikTok Shop as a merchant is trading income. Affiliate income is a separate stream and should be recorded separately.
Legal basis and sources
The law
- Income Tax Act 1967, s.4(a)
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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