Celebrities cannot use seek tax exemption for spending on make-up and beauty treatments, the Internal Revenue Board (IRB) said.

Tax exemptions are only allowed for items that are solely used to provide services in the entertainment industry.

“Others, which are also used for personal use, cannot be exempt from income tax.

“Meaning that spending on make-up or doing beauty treatments are not tax-deductible expenses because these are considered personal use,” IRB public relations chief officer Masrun Maslim said.

However, Masrun said, the costs of clothing for performances, and for make-up artists and managers are deductible expenses.

He also assured celebrities who do not have a steady income not to worry because the tax rates are not the same as that for salaried workers.

The per job payment they receive will be considered commercial income, Masrun said.

Declare using Form B

As such, he said, they will need to declare this income using Form B and submit it before June 30 every year, along with deductible expenses.

“Even if they get two or three jobs worth a total of RM50,000, they can rest assured that IRB will not tax them on that amount.

“We understand that there are costs they have to incur like paying their managers, toll rates for travel, petrol and transport fares to get to locations, publicity expenses and so on,” Masrun said.

He said many celebrities have landed in trouble for not declaring their incomes to the IRB, while half of them do not pay tax.

This is based on IRB’s survey on 100 celebrities, where 50 said they did not submit their income tax forms.

“They have to declare their incomes, even if it is an irregular income, like a contract to act for three months over a year, for example.

“They need to declare it so they will know how much tax they have to pay.

“There is a lackadaisical attitude among celebrities (about tax obligations). They either don’t understand or pretend not to,” Masrun told Malaysiakini.