5 September 2025 – The South African Revenue Service (SARS) has noted information circulating in public regarding taxation of social influencers. SARS wishes to clarify its position with respect to this category. SARS’s legal mandate is to collect all revenue that is due to the state, improve tax compliance, and facilitate legitimate trade.
SARS delivers this mandate through its strategic intent to develop and administer a tax and customs system based on voluntary compliance. Principally, SARS’s compliance theory is underpinned by an assumption that all taxpayers are honest and want to be assisted to comply with their obligations.
To help honest taxpayers who are willing to comply, SARS:
- Provides clarity and certainty to taxpayers and traders of their tax obligations.
- Makes it easy for taxpayers and traders to comply.
SARS is aware that not all taxpayers’ needs are the same. SARS is organised into segments, enabling the organisation to serve various taxpayers’ needs. Complementing this segmentation is our use of data to augment efforts to deepen a culture of voluntary compliance while managing risks.
SARS has been expanding its segmentation model. SARS recognises standard taxpayers (comprising taxpayers with a single income and simple returns); Large and International Businesses; High Wealth Individuals; Public Benefit Organisations; Prominent and Related Entities; Estates; Tax Practitioners; and Employers.
The latest additions to this segmentation model are National and Provincial Government; Social Influencers; and the Gig Economy. The segment of social influencers is composed of modern entrepreneurs, who can be classified as sole proprietors or independent contractors. These are technologically savvy individuals who have identified a niche in the market to provide a generalised offering that leverages their social following. When managing this segment, SARS will handle each such situation on a case-by-case basis according to current income-tax brackets. Some of these cases may generally fall into the provisional-taxpayer category.
For each of these segments, SARS has an engagement model whose first step is to provide clarity and certainty and to make it easy for taxpayers to comply. We work with and through stakeholders and partners to deliver SARS’s mandate. This segment format will specifically serve this group of taxpayers and ensure compliance. For this group, awareness of one’s tax obligations is key.
In terms of the new segments, such as the social influencers’ economy, SARS understands that traditional marketing campaigns are increasingly digitising through smart technologies. SARS is generally finding that most marketing budgets are contracting social personalities to lend their image to digital platforms. This is a shift away from established marketing houses toward individuals with a sizeable following. As the marketing spend-mix changes in response to these shifts, SARS is also adapting its educational and compliance initiatives. Undeniably, digitisation and attendant economic activities have fundamentally changed the world of work, and the gig and sharing economy are critical in this respect.
Tax brackets are determined by income as defined in Section 1 of the Income Tax Act, 58 of 1962 (ITA). Third-party data play a crucial role in determining where each taxpayer must be allocated in terms of income bracket. It must be reiterated that it remains the social influencers’ legal obligation to declare all income received.
Full voluntary disclosure is critical. No matter how social influencers are remunerated — whether with products, services, or travel — all of these are deemed as income (ITA) and must be taxed accordingly. In line with our compliance theory, SARS believes that taxpayers are honest: when they are clear and certain of their obligations, they comply voluntarily. SARS believes that social influencers will declare honestly when adequately educated. In this regard, SARS has prepared products and videos to help these taxpayers to meet their obligations. SARS aims to do much more in terms of outreach and education. It will also provide seminars and webinars as well as rulings to educate taxpayers about their obligations.
Although the social-influencer segment has its own nuances, it is no different to other taxpayer segments in that income earned must be disclosed and taxed. Freelance work is similar. Citizens working as social influencers are encouraged to declare income earned from brand collaboration, sponsored content, and affiliate marketing, whether they have been paid in cash, products, or services. These taxpayers, like all others, are making a significant contribution to the health of our country and its democracy.
Edward Kieswetter, SARS Commissioner, said that “SARS is looking forward to working with this segment to provide clarity and certainty, but also to provide them with a seamless taxpayer experience”. He stressed that “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”.
For further information, please contact [email protected].
