Jashwin Baijoo | Associate Director | Head | Strategic Engagement & Compliance | Tax Consulting SA | mail me |
Social influencers in South Africa must declare all income, including non-monetary compensation, as clarified by the South African Revenue Service (SARS)!
On 5 September 2025, SARS issued a media release. It stated its zero-tolerance position regarding social influencers and undeclared income. The release also provided clear guidance on the tax obligations of these influencers.
As digital marketing continues to evolve, this initiative ensures that all taxpayers comply with their tax responsibilities. SARS and social influencers remain a focal point in efforts to tighten compliance within the gig economy.
Flowing from the success of SARS’ segmentation model, including the High-Wealth Individual Unit and Crypto-Asset Revenue Augmentation Unit, SARS has now introduced “Social Influencers and the Gig Economy”.
SARS’ new gig strategic objectives
This strategic move aligns with SARS’ mandate to collect all revenue due to the state. SARS wrote off R36.5 billion in taxes last year, creating a deficit that must be filled.
Initially, policymakers hoped to bridge this gap by increasing the VAT rate. However, that attempt failed. Increasing income tax brackets is another option. Yet, with already high marginal rates, SARS must target alternative taxpayer segments to cover fiscal deficits.
Social influencers generate income in various ways, such as sponsorship agreements and product collaborations. SARS asserts that all forms of compensation must be declared as taxable income under South African tax laws. This includes cash, products and even travel.
Practical implications
Influencers are urged to voluntarily disclose their earnings accurately to avoid compliance issues, regardless of how they are remunerated. This reinforces the growing importance of SARS and social influencers in shaping modern tax enforcement.
To assist influencers in meeting their tax obligations, SARS has committed to providing targeted resources, such as:
- Educational materials and videos.
- Workshops and seminars designed to clarify tax responsibilities.
SARS Commissioner Edward Kieswetter emphasised the agency’s intent to collaborate with influencers. He explained that SARS wants influencers to have clarity about their obligations and a positive taxpayer experience. It is essential for influencers to understand that their non-traditional income sources do not exempt them from tax regulations.
The other side of the coin arises when influencers fail to comply voluntarily. SARS’ secondary objective is to make non-compliance hard and costly. It uses data-driven insights to detect irregularities. These insights augment manpower and often result in a five-year audit on the chosen taxpayer. Offenders face understatement penalties of up to 200%.
SARS notices in your mailbox
Taxpayers active in the influencer space or gig economy who have not declared their income, whether in cash or kind, should act quickly. They are encouraged to engage with specialist tax attorneys to ensure compliance. Such professionals can help with voluntary disclosures, assess tax liability from historical transactions and regularise income reporting before SARS initiates audit proceedings.
All this can be done under legal professional privilege, which reduces risk exposure. This recommendation follows numerous taxpayers receiving audit notices and final demand letters. These actions stem from SARS’ improved data insights and system modernisations.
The message is clear. SARS wants taxpayers to comply voluntarily, or it will make them comply.
Recommendations for social influencers
A common misconception is that income from foreign sources or platforms is invisible to SARS. This is not true. When taxpayers attempt to hide transactions, SARS can detect them and take measures to recover what is due. The interaction between SARS and social influencers demonstrates how seriously foreign income is being tracked.
For social influencers or anyone in the gig economy, the following steps are recommended:
- Keep accurate records and provide full disclosure of all income streams, including “in kind” payments, to comply with SARS.
- Set aside a portion of your income for tax, similar to a contractor.
- Utilise SARS’ educational resources to better understand your tax obligations.
- If you have already erred, consult a tax professional immediately. They can guide you on reporting income, claiming deductions and rectifying historic non-compliance.
The recent expansion of SARS’ framework to include influencers underscores the importance of following tax regulations in a digital economy.
The best defence is a good offence
To avoid becoming the next revenue collection headline, always keep your tax affairs in order. SARS warns that non-compliance will be both hard and costly.
If influencers or artists need to disclose undeclared interests, foreign income, or secondary income, the best option is to seek a tax professional. A professional will help craft the right compliance strategy.
Should you already find yourself in conflict with SARS, act quickly. There is a first-mover advantage in seeking legal counsel. Doing so ensures steps are taken under legal professional privilege and provides protection for your reputation.
In cases of potential conviction for tax offences, SARS must be engaged legally. The agency is generally agreeable when a correct compliance strategy is followed.
