The South African Revenue Service (SARS) has begun enforcing stricter compliance among social media influencers, calling on them to declare all income—including sponsored posts, brand partnerships, and perks such as free trips and products—as it pursues unpaid taxes.
SARS aims to recover approximately R513 billion in unpaid taxes, as part of its aggressive effort to meet the revised 2024/25 fiscal year revenue target of R1,840.8 billion.
The revenue authority is employing artificial intelligence and data analytics to identify undeclared influencer income. It cross-references social media activity with financial transactions to detect non-compliance.
Mohau Lebese, Managing Partner at Accountants on Point, told CapeTalk that many influencers lack tax knowledge. He explained that most begin by posting “funny videos” at home and may not realise that in-kind benefits also fall under taxable income.
Lebese clarified that perks such as sponsorships, brand deals, free meals, gadgets, and trips form part of “gross income” and must be declared in annual tax returns.
He also distinguished between informal freebies and formal agreements. Receiving a gadget to unbox without a contract differs from a formal promotional agreement—in the latter case, SARS treats it as taxable income.
SARS imposes administrative penalties of between R250 and R16,000 per month for each outstanding tax return, even if no tax is owed. Persistent non-compliance may result in criminal charges. The authority uses advanced data-matching and international law frameworks to enforce compliance.
According to industry reports, SARS is in the process of upgrading its systems and will continue to escalate enforcement efforts against influencers who fail to report this type of income.
The move signals a broader shift in SARS’s strategy toward the digital economy, where it increasingly targets non-traditional income streams to bolster revenue collection.
