SARS has a new target

Tax experts warned that social media influencers in South Africa must declare all income, including non-monetary compensation, to SARS or risk costly consequences.

On 5 September 2025, SARS issued a media release stating its zero-tolerance position on social influencers and undeclared income and providing clear guidance on these taxpayers’ obligations.

Jashwin Baijoo, associate director and head of strategic engagement and compliance at Tax Consulting SA, warned that as digital marketing continues to evolve, this initiative aims to ensure that all taxpayers comply with their responsibilities.

Based on the success of SARS’ segmentation models, such as the High-Wealth Individual Unit and Crypto-Asset Revenue Augmentation Unit, SARS has now introduced “Social Influencers and the Gig Economy”.

Baijoo said this strategic move aligns with SARS’ mandate to collect all revenue due to the state. In 2024, SARS wrote off R36.5 billion in taxes. Now, the taxman is looking at how it can plug the budget’s deficit.

“Initially, it was hoped this would be aided by an increased VAT rate, but we all know how that went,” Baijoo noted.

“Increasing income tax brackets could be another consideration, but with marginal rates as high as they are, SARS has to look to alternate taxpayer segments to fill any fiscal deficits.”

With the rise of the digital economy, social media has become an increasingly popular income stream worldwide and in South Africa.

“Social influencers generate income through various means such as sponsorship agreements and product collaborations,” he said.

However, influencers are often unaware of their tax obligations, so they don’t always declare their income correctly, or even at all.

“Notably, SARS asserts that all forms of compensation, whether in cash or kind (including products and travel), must be declared as taxable income under South African tax laws,” Biajoo explained.

“Influencers are urged to voluntarily disclose their earnings accurately to avoid compliance issues, no matter how they are remunerated.”

SARS’ message for influencers

To assist social influencers in meeting their tax obligations, Baijoo said SARS has committed to providing targeted resources, such as educational materials and videos, and workshops and seminars designed to clarify tax responsibilities

SARS Commissioner Edward Kieswetter emphasised the agency’s desire to collaborate with influencers, ensuring clarity regarding their obligations and a positive taxpayer experience.

“It is essential for influencers to recognise that their non-traditional income sources do not exempt them from tax regulations,” Baijoo stressed.

“The flip side of the coin is where influencers fail at full voluntary compliance, SARS’ other strategic objective of making non-compliance hard and costly, kicks in.”

SARS is using data-driven insights to augment manpower efforts to detect non-compliance. Often, this results in a five-year audit of the chosen taxpayer and culminates in understatement penalties of up to 200% being imposed on the offending taxpayer.

Baijoo warned that income from foreign sources and platforms is not invisible to SARS. Where a taxpayer attempts to sweep their transactions under the rug, SARS will see this and take the necessary measures to ensure that they recover what is due.

For social influencers or those partaking in the gig economy, the following steps are recommended:

• Keep accurate records and provide full disclosure of all income streams, including those “in kind”, to comply with SARS requirements
• Keep aside a portion of your income for the taxman, similar to a contractor
• Utilise available educational resources from SARS to better understand your tax obligations
• Where you have already misstepped, immediately consult a tax professional for guidance on income reporting and deductions associated with influencer activities, whilst rectifying historic non-compliance

“The recent expansion of SARS’ framework to include social influencers highlights the significance of adhering to tax regulations in an increasingly digital economy,” he said.

“In instances of potential conviction on commission of a tax offence, SARS must be engaged legally, and we generally find them utmost agreeable where a correct tax and compliance strategy is followed.”