Influencers are firmly on SARS’s radar. The issue is no longer whether their income, cash or otherwise, is taxable, but how the revenue service will enforce compliance in a fast-growing, often murky, digital economy.
For now, SARS appears to be relying on voluntary compliance, making it clear that all forms of remuneration - cash, products, services or travel - are taxable.
Edward Kieswetter, the SARS Commissioner, said: “SARS is looking forward to working with this segment to provide clarity and certainty, but also to provide them with a seamless taxpayer experience. SARS is more than willing to assist honest taxpayers to comply with their tax obligations. I am reminding social influencers to uphold their end of the bargain.”
SARS has also highlighted that although the social-influencer segment has its own nuances, it is no different from other taxpayer segments in that income earned must be disclosed and taxed.
The issue of influencer tax came under renewed spotlight last month, when several young South African influencers were reportedly paid up to R100 000 each to promote the controversial Alabuga recruitment programme in Russia. The campaign sparked widespread criticism, not only for its ethical concerns but also for raising questions about whether this income had been declared, in light of SARS’s growing focus on digital earners.
Despite this, many influencers remain unsure how to apply the rules, especially when it comes to declaring non-cash benefits or structuring their activities to comply with tax obligations.
Ndivhuwo Muhanelwa, an author and contentpreneur, said: “Like many influencers, I started just enjoying the payments and freebies.
“The mistake is thinking, ‘I’m not a business; I’m just creating content.’ That’s ignorance, and it’s dangerous. The moment you start earning, you’re running a business whether you like it or not. I now treat myself as a contentpreneur.”
Muhanelwa believes support must be simplified. “Simplicity and mentorship would assist, step-by-step tools, calculators, and digital guides. Also, connect us with advisors who actually understand influencer income, not just 9-to-5 pay cheques. Once you start thinking like a business, tax stops being intimidating and becomes part of the growth process.”
Influencer Adré Müller admitted she was initially unaware of how to handle gifted collaborations but now records both monetary and non-monetary income. “I save invoices, agreements, and emails to track the value of gifted items or services. Declaring them can be tricky because it’s not always straightforward. I feel SARS hasn’t yet tailored enough resources for influencers. Most people only hear about it through word-of-mouth or after getting into trouble.”
Müller's suggestions: “Step-by-step guidance, templates for tracking income, and relatable examples. Even a SARS portal specifically for content creators could make the process less overwhelming.”
Lindokuhle Mkhize, influencer and senior business developer at Style ID Africa, argues that the gap lies in education.
“Influencer marketing is a relatively new industry, and while SARS has frameworks in place, most influencers aren’t directly reached with education or practical tools. There’s room for more targeted communication. Simple, accessible tools like webinars, explainer videos, or even a dedicated influencer tax guide would make compliance less intimidating and far more straightforward.”
For many influencers, creating content began as a hobby or just a bit of fun. During lockdown, especially, casual posts and playful videos quickly turned into paid gigs, sponsored trips, and gifted products. Before they knew it, they were running a business, without necessarily understanding the tax obligations that came with it.
But experts warn that non-compliance carries serious consequences, including financial penalties of up to 200% of undeclared amounts with interest, and damage to professional credibility that can cost partnerships with brands.
Mohau Lebese, managing partner at Accountants on Point, recalls the shift during lockdown.
“Back in 2020, people were making funny entertainment videos just to pass the time. That moved from being just for likes to a full-time gig. The challenge is, they started earning money from something they thought of as entertainment and never considered the tax obligations. Many influencers don’t understand their responsibilities, and the income structures, sponsored posts, free products, and discounted deals make it even more complex.”
For influencers who haven’t declared past income, SARS’s Voluntary Disclosure Programme (VDP) provides a clear pathway to compliance. Participants can come forward voluntarily, declare their earnings, set up repayment plans, and often benefit from reduced penalties, helping to mitigate the financial and professional risks of non-compliance.
Luncedo Mtwentwe, managing director at Vantage Advisory and host of the SAICABIZ Impact Podcast, highlights the importance of the SARS's VDP.
“The VDP is SARS’s way of saying that if you’ve slipped up, you can come clean. Influencers who haven’t declared income in past years can voluntarily disclose, set up repayment, and often receive reduced penalties. It’s much safer to come forward than to wait for an audit.”
“Treat your hustle like a business. Keep proper records, even if it’s on Excel. Then register formally, either as a sole proprietor or a small business corporation. That gives you credibility, opens tax benefits, and shows clients you’re serious.”
Hiten Keshave, CEO of Unconventional CA, warned that the financial and professional risks are real stating, “Penalties can be up to 200% of undeclared amounts, with interest on top. But the bigger issue is credibility. Without tax clearance certificates, many brands, especially international ones, won’t work with you. Non-compliance can cost you deals as well as money.”
Keshave stresses that compliance should be viewed as part of brand-building. “Brands increasingly ask for tax clearance certificates. If your finances are in order, you avoid nasty surprises and project professionalism, which in turn strengthens your brand.”
anita.nkonki@inl.co.za
Saturday Star