Side Income & a Second Job: How to Report Alongside a Salary

Introduction

You are salaried and have extra income — tuition classes, online sales, e-hailing, commissions, influencer work, rental, or a second salaried job. Do you need to report it? Which form? And is PCB enough?

The basic principle: all income must be reported. The type of form you use depends on whether you carry on a business — not on the number of income sources.

Which form? The deciding factor: business or not

With a business (even small or started mid-year): Form B only — include salary + business income + others in the same Form B. Deadline: 30 June (e-Filing: 15 July).
Without a business: Form BE — salary + other income (rent, interest, etc.). Deadline: 30 April (e-Filing: 15 May).

Source: HASiL — Frequently Asked Questions (Individuals) Q11, Q35 (R1); BN Filing Programme 2026 (R5).

Second salaried job — employment income (s.13)

A second salaried job is employment income (s.13) from another employer. It is reported together with your main salary in your return; PCB is deducted by each employer; total income is aggregated.

Source: HASiL — Frequently Asked Questions (Individuals) (R1); Form BE Explanatory Notes (R3).

PCB as Final Tax — loss of eligibility

PCB as Final Tax (Cukai Muktamad) (the option not to submit a tax return) is only available if all of the following conditions are met: only one source of employment income (s.13); PCB deducted under KKCP 1994 (or zero PCB); serving with the same employer; tax not borne by the employer; and no election for joint assessment.

Therefore, side income/a second job removes eligibility to choose Final Tax — you must file a return.

Source: HASiL — Frequently Asked Questions (Individuals) Q31 (R1).

Side business income — self-assessment

Business income (commissions, tuition classes, speaking, e-hailing driving, freelancing, personal shopping, influencer work) is income chargeable under paragraph 4(a) ITA 1967. For side business income:

self-assessment applies;
records must be kept for 7 years;
CP500 estimates may apply;
expenses are allowed under s.33/39 (see perbelanjaan-tidak-boleh-ditolak).

Source: HASiL — Introduction to Individual Income Tax (R2); Frequently Asked Questions (Individuals) (R1).

Influencers & social media — HASiL guideline 14 Jan 2026

According to the Guideline on the Tax Treatment of Income of Social Media Influencers (HASiL, 14 January 2026), influencer income from marketing/platform activities is generally business income under paragraph 4(a) of the ITA, except where an employment relationship exists. Expenses wholly and exclusively incurred in producing gross income are deductible; assessment basis and CP500 payment procedure apply.

Source: HASiL — Social Media Influencers Guideline, 14 Jan 2026 (R4).

What if you do not report?

Failure to report side income can result in additional assessments/penalties. Records must be kept for 7 years.

Source: HASiL — Frequently Asked Questions (Individuals) Q7–Q10 (R1); Form BE Explanatory Notes (R3).

this item still awaits official confirmation from HASiL — check again with HASiL before deciding. notes from research

Frequently Asked Questions (FAQ)

Q. I work for a salary and sell cakes on a small scale. Which form? A. If you carry on a business (even small), use Form B only — include salary + business income in the same form; deadline 30 June (e-Filing 15 July).

Q. I have a second salaried job. Do I need to report it? A. Yes — a second salaried job is employment income (s.13); it is reported together with your main salary. The presence of side income removes the eligibility for PCB as Final Tax — you must file.

Q. Is influencer income taxable? A. Generally yes — influencer income from marketing/platform activities is business income (paragraph 4(a) of the ITA), except where an employment relationship exists (HASiL Guideline 14 Jan 2026).

Q. Can I deduct expenses for my side activities? A. Yes, if they are wholly and exclusively incurred in producing gross income (s.33), and not within the s.39 prohibitions.

Q. How long must I keep side income records? A. 7 years.

Glossary

BNCP — income tax return form (Borang Nyata Cukai Pendapatan).
CP500 — tax estimate notice for business individuals (instalment payments).
PCB — Monthly Tax Deduction (Potongan Cukai Bulanan).
Final Tax (Cukai Muktamad) — the option not to submit a tax return if certain conditions are met (one employment source, same employer, etc.).
s.13 — gross employment income.
paragraph 4(a) — income from a business.
YA — Year of Assessment.