SARS is coming after influencers in South Africa

South African social media influencers and content creators face increased scrutiny of their tax affairs as SARS comes after income generated from brand deals, sponsored posts, and platform payments.

The South African Revenue Service (SARS) has published a dedicated tax guide for influencers and content creators, formally recognising the growing digital economy as a taxpayer segment.

The guidance covers influencers, TikTok personalities, YouTubers, Instagram creators, podcasters and other digital entrepreneurs.

It explains how existing tax rules apply to income earned through content creation and online business activities.

Tax Consulting SA’s Partner and Head of Strategic Engagement & Compliance, Jashwin Baijoo, warned that creators who have treated social media earnings as informal pocket money now need to reconsider their tax affairs.

One of the biggest misconceptions among content creators is that tax only applies to salaries or cash deposited into a bank account.

However, income from sponsored posts, brand partnerships, affiliate marketing, advertising revenue and subscriptions is generally taxable.

The same applies to certain non-cash benefits received in exchange for content, promotion or publicity. These may include products, accommodation, travel, vouchers and other services.

For example, an influencer could receive R40,000 in cash for a promotional campaign, a smartphone worth R20,000 and accommodation worth R15,000 in exchange for agreed promotional work.

In this example, the total value of the benefits could amount to R75,000 for gross-income purposes, subject to the applicable tax rules and the circumstances of the arrangement.

The influencer cannot automatically exclude the smartphone and accommodation simply because no money changed hands.

However, not every gift is taxable. SARS distinguishes between benefits received in exchange for services or promotional obligations and genuinely unsolicited gifts that are not linked to work performed.

Creators who regularly receive products, luxury goods, travel opportunities and complimentary experiences should therefore assess the nature of each benefit rather than assume that it falls outside their taxable income.

Navigating tax obligations as an influencer

Baijoo explained that many South African content creators earn money from international brands and digital platforms.

Payments may come through services such as PayPal, Stripe, Wise, Patreon or YouTube AdSense rather than directly from a South African company.

However, earning money in dollars, pounds, or euros does not automatically remove it from the South African tax system.

South African tax residents are taxed on their worldwide income, which means foreign-platform earnings still need to be declared to SARS.

Income from services physically performed in South Africa will be regarded as South African-sourced, even if the client is based overseas.

The treatment of particular receipts can differ where intellectual property, licensing arrangements or double taxation agreements are involved.

Baijoo said that creators must also establish whether their activities amount to a business for tax purposes. SARS generally regards people earning income from content creation and related activities as carrying on a trade.

Many operate as sole proprietors, which means that their business income is declared in their individual income tax return alongside other income.

They may also have provisional tax obligations. This would require them to pay income tax in advance rather than settle the full amount at the end of the tax year.

Baijoo explained that content creators can generally deduct qualifying business expenses. However, they cannot assume that every purchase connected to their online presence reduces their taxable income.

Expenses must meet the applicable requirements, including being incurred in the production of income and in carrying on a trade. Capital expenditure and private expenses are not automatically deductible.

This can be particularly relevant to clothing, cosmetics, phones, cameras, travel, accommodation, internet costs and home-office expenses.

For example, a phone used for both personal and business purposes may require an apportionment between the two uses.

Similarly, a creator cannot automatically claim the full cost of clothing simply because it appears in social media content.

Creators should retain invoices, receipts, contracts and other documents that establish the business purpose of their expenditure.

SARS also recommends keeping campaign briefs, sponsorship agreements, platform payout statements, affiliate reports, proof of published content and records of products or services received in exchange for promotional work.

Tax records should be retained for at least 5 years and made available upon request by SARS.

Growing creators may also face VAT obligations

According to Baijoo, income tax is not the only consideration for creators whose businesses are expanding.

From 1 April 2026, the compulsory VAT registration threshold increased to R2.3 million in taxable supplies over a 12-month period.

Voluntary registration may be available where taxable supplies exceed R120,000 over 12 months.

Creators whose businesses exceed the compulsory threshold must assess their registration obligations and ensure they comply with the relevant VAT requirements.

Failure to meet tax obligations can result in outstanding tax, interest and penalties. Depending on the circumstances, SARS may also impose understatement penalties where the statutory requirements are met.

Serious tax offences can carry criminal consequences, although prosecution does not automatically follow from an innocent mistake or an unpaid tax amount.