SHAH ALAM - Nearly half of Malaysian content creators remain unaware that non-cash rewards from brand collaborations, including free products, luxury hotel stays, and gift vouchers, constitute taxable income, according to a new industry study.
The MYCreator Pulse Report 2026, commissioned by public relations consultancy VoxEureka and conducted by market research firm Vase.ai, revealed that 45 per cent of the 489 local digital creators surveyed were either unaware or uncertain that in-kind benefits must be declared for tax purposes.
The findings come amid heightened regulatory oversight from the Inland Revenue Board (LHDN), which recently formalised updated tax guidelines classifying gifts, vouchers, and sponsored travel with measurable market value as taxable business income under the Income Tax Act 1967.
According to the report, 70 per cent of Malaysian creators receive free products or gifts as standard compensation. Non-cash "gifting" accounts for 46 per cent of their total income sources, marginally outstripping cash payments, which stand at 43 per cent. Despite its prominence, the majority of respondents admitted they do not formally track the monetary valuation of these perks.
VoxEureka Deputy Managing Director Crystalbelle Lau said the study highlights a maturing creator economy that now requires urgent professional awareness and structured industry support.
“The growing regulatory focus on creators reflects the maturity of the creator economy, which is a positive development for the industry,” Lau said in a statement. “However, maturity brings responsibility. Brands and agencies must step up with practical support and clear guidance, ensuring that creators can navigate this transition without being left behind.”
Tax professionals noted that non-compliance within the sector typically stems from a lack of accounting knowledge rather than intentional evasion or an unmanageable tax burden.
“What we usually find is that once legitimate deductions and personal reliefs are taken into account, the actual tax owed is far less than people fear,” said Krishnan Dorairaju, a partner at Vaersa Tax Services Sdn Bhd. “The bigger problem is failing to file at all, and that's what tends to land people with penalties they could easily have avoided.”
Prominent digital personalities have called for more accessible resources to simplify the filing process. Content creator Eien Razak, who has more than 340,000 followers on TikTok, noted that managing multiple annual brand partnerships without creator-specific guidance can leave talent feeling overwhelmed.
Similarly, Kee, a prominent Malaysian creator with more than six million TikTok followers, emphasized the need for hands-on corporate support, including dedicated tax workshops and direct access to qualified accountants to bridge existing knowledge gaps.
Beyond taxation challenges, the report found structural administrative deficiencies within the sector. A significant portion of Malaysian creators continue to operate without formal business entities, with many relying on informal methods such as spreadsheets, bank statements, or memory to track their commercial earnings.
In response to the findings, VoxEureka, in collaboration with Vaersa Tax Services, has released a free educational tax guide designed specifically for digital talent. The publication details how to properly value non-cash compensation, identify allowable business deductions, such as production equipment and internet subscriptions, and implement standard record-keeping practices to ensure statutory compliance.