Most Content Creators Tax Illiterate Oblivious That Free Gifts Are Taxable

Nearly half of Malaysian content creators remain unaware or uncertain that non-cash compensation such as free products, hotel stays and vouchers received in exchange for content may be considered taxable income, according to a new industry survey.

The MYCreator Pulse Report 2026, commissioned by integrated public relations agency VoxEureka and independently conducted by research firm Vase.ai, found that 45% of 489 surveyed creators were unsure about their tax obligations relating to in-kind payments.

The findings come ahead of the tax filing deadline and amid increased regulatory attention on the growing creator economy, including guidelines from the Inland Revenue Board of Malaysia (LHDN) requiring creators to declare in-kind compensation.

“Growing regulatory focus reflects the maturity of the creator economy, which is a positive development for the industry,” said VoxEureka Deputy Managing Director Crystalbelle Lau.

“However, maturity brings responsibility. Brands and agencies must step up with practical support and clear guidance to ensure creators can navigate this transition,” she added.

Gifts Become Major Income Source

The study found that free products and gifts have become a significant component of creator earnings, with 70% of creators receiving products or gifts as compensation.

Product gifting accounted for 46% of creator income sources, surpassing direct cash payments at 43%.

However, many creators do not formally record the value of these benefits, creating challenges when determining taxable income.

The awareness gap was more evident among smaller creators. Among those with fewer than 1,000 followers, one in four were unaware that in-kind benefits may be taxable, compared with 91% awareness among creators with more than 100,000 followers.

Vaersa Tax Services partner Krishnan Dorairaju said many creators often overlook tax obligations while focusing on audience growth and content production.

He noted that creators should also consider legitimate business deductions and tax reliefs, adding that the bigger risk is failing to file altogether, which could result in avoidable penalties.\

Tax Filing Remains Confusing for Many Creators

The survey showed that only 34% of creators have filed income tax as content creators and intend to continue doing so.

Among creators who have not filed:

  • 26% believe their income is below the taxable threshold;
  • 17% plan to file for the first time this year; and
  • 14% were unaware that content creators are required to submit tax filings.

Among those who have filed, 46% described the process as confusing, particularly when valuing non-cash income and identifying allowable deductions.

TikTok creator Eien Razak, who has more than 340,000 followers, said uncertainty remains around how gifted products and barter collaborations should be valued and reported.

“While many creators are aware that income from brand collaborations may be taxable, there is still uncertainty around how gifted products and barter deals should be valued and reported,” he said.

Another creator, Kee, who has over 6 million TikTok followers, said practical support such as workshops and easier access to tax professionals would help improve compliance.

Creator Economy Needs More Business Support

Beyond tax awareness, the report highlighted broader gaps in financial and business practices among creators.

The study found that 29% of creators have no formal business practices, while 68% have not registered any form of business entity.

Many creators continue to track income informally through spreadsheets, bank statements or personal records.

VoxEureka said these challenges are particularly common among nano and micro creators, where commercial activity is expanding but professional infrastructure remains limited.

“With shoppertainment and e-commerce on the rise, the creator economy has become an important economic sector for many Malaysians,” Lau said.

To support creators, VoxEureka is releasing a tax guide developed with Vaersa Tax Services, covering areas including valuation of non-cash compensation, deductible expenses and simple record-keeping practices.

The guide aims to help creators better manage their tax responsibilities as Malaysia’s creator economy continues to expand.

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