The South African Revenue Service (SARS) has announced that social media influencers must declare all forms of income, including non-cash benefits such as free products, sponsored trips, and brand partnerships. This move is part of SARS’s broader effort to recover approximately R513 billion (~$28.5 billion) in unpaid taxes and meet its revised revenue target of R1.84 trillion (~$102.2 billion) for the 2024/25 fiscal year.
SARS Commissioner Edward Kieswetter confirmed that the revenue service is expanding its taxpayer segmentation model to include social influencers, describing them as “modern entrepreneurs” who can be classified as sole proprietors or independent contractors.
“No matter how social influencers are remunerated – whether with products, services, or travel – all of these are deemed as income under the Income Tax Act and must be taxed accordingly,” said Kieswetter in a recent statement.
SARS plans to leverage artificial intelligence and data analytics to identify undeclared income in the growing influencer sector. The tax authority has emphasized that cases will be assessed individually, with many influencers potentially falling into the provisional taxpayer category, depending on their income levels.
Mohau Lebese, Managing Partner at Accountants on Point, explained the distinction between informal gifts and taxable income: “If you receive a gadget to unbox and talk about on your platform without any formal contract, that’s one thing. But if you have agreed to promote a brand in exchange for that product or service, SARS treats that as income.”
Pushback and Concerns
Some prominent content creators have voiced opposition to the new tax focus. Television personality Lasizwe Dambuza criticized the move, arguing that it places an unfair burden on creators who are already struggling to earn a consistent income.
“Being an influencer is not as glamorous as people think. It’s actually very tough to navigate this world,” Dambuza told Sunday World. “Every single day, influencers are negotiated down … our value is constantly questioned.”
Dambuza highlighted the significant expenses influencers incur, including makeup, transport, and outfits, sometimes for unpaid appearances. “Sometimes you’ll maybe get a goodie bag, and now even that is seen as taxable,” he said.
Education and Compliance Support
SARS has indicated it will provide educational resources to help influencers understand and meet their tax obligations. The revenue service is developing materials, videos, webinars, and seminars specifically for this taxpayer segment.
At the recent Africa Creator Festival in Johannesburg, Keitumetse Sesana, Acting Deputy CEO at the South African Institute of Taxation, reminded influencers of their obligations: “Every rand and cent that you make belongs to this country. That’s consideration in cash, but there’s also consideration in kind.”
Sesana also warned that SARS has visibility into financial accounts and social media activity. “You guys operate in the digital economy. As much as I can see you consuming your content, they can see it too.”
Cecilia Carloni, Interview Manager at Influence Weekly and writer for NetInfluencer. Coming from beautiful Argentina, Ceci has spent years chatting with big names in the influencer world, making friends and learning insider info along the way. When she’s not deep in interviews or writing, she's enjoying life with her two daughters. Ceci’s stories give a peek behind the curtain of influencer life, sharing the real and interesting tales from her many conversations with movers and shakers in the space.
The South African Revenue Service (SARS) has announced that social media influencers must declare all forms of income, including non-cash benefits such as free products, sponsored trips, and brand partnerships. This move is part of SARS’s broader effort to recover approximately R513 billion (~$28.5 billion) in unpaid taxes and meet its revised revenue target of R1.84 trillion (~$102.2 billion) for the 2024/25 fiscal year.
SARS Commissioner Edward Kieswetter confirmed that the revenue service is expanding its taxpayer segmentation model to include social influencers, describing them as “modern entrepreneurs” who can be classified as sole proprietors or independent contractors.
“No matter how social influencers are remunerated – whether with products, services, or travel – all of these are deemed as income under the Income Tax Act and must be taxed accordingly,” said Kieswetter in a recent statement.
SARS plans to leverage artificial intelligence and data analytics to identify undeclared income in the growing influencer sector. The tax authority has emphasized that cases will be assessed individually, with many influencers potentially falling into the provisional taxpayer category, depending on their income levels.
Mohau Lebese, Managing Partner at Accountants on Point, explained the distinction between informal gifts and taxable income: “If you receive a gadget to unbox and talk about on your platform without any formal contract, that’s one thing. But if you have agreed to promote a brand in exchange for that product or service, SARS treats that as income.”
Pushback and Concerns
Some prominent content creators have voiced opposition to the new tax focus. Television personality Lasizwe Dambuza criticized the move, arguing that it places an unfair burden on creators who are already struggling to earn a consistent income.
“Being an influencer is not as glamorous as people think. It’s actually very tough to navigate this world,” Dambuza told Sunday World. “Every single day, influencers are negotiated down … our value is constantly questioned.”
Dambuza highlighted the significant expenses influencers incur, including makeup, transport, and outfits, sometimes for unpaid appearances. “Sometimes you’ll maybe get a goodie bag, and now even that is seen as taxable,” he said.
Education and Compliance Support
SARS has indicated it will provide educational resources to help influencers understand and meet their tax obligations. The revenue service is developing materials, videos, webinars, and seminars specifically for this taxpayer segment.
At the recent Africa Creator Festival in Johannesburg, Keitumetse Sesana, Acting Deputy CEO at the South African Institute of Taxation, reminded influencers of their obligations: “Every rand and cent that you make belongs to this country. That’s consideration in cash, but there’s also consideration in kind.”
Sesana also warned that SARS has visibility into financial accounts and social media activity. “You guys operate in the digital economy. As much as I can see you consuming your content, they can see it too.”
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