The South African Revenue Service is intensifying enforcement by targeting social media influencers and content creators who do not declare income from brand deals, sponsorships, and non-cash benefits. The effort supports recovery of R513 billion in outstanding taxes and a revised 2024/25 revenue target of R1.84 trillion. SARS is deploying AI and advanced data analytics to detect undeclared income, especially among individuals operating outside formal business structures. Sponsored posts, brand collaborations, and non-cash perks are treated as gross income and must be reported. Penalties include administrative fines of R250 to R16 000 per month and potential criminal charges for repeated or willful evasion. Tax experts urge creators to review income, disclose earnings, and seek professional advice.
The South African Revenue Service (SARS) is stepping up its tax compliance game by targeting social media influencers and content creators who fail to declare income from brand deals, sponsorships, and non-cash benefits. The move comes as part of a larger effort to recover R513 billion in outstanding taxes and meet a revised revenue target of R1.84 trillion for the 2024/25 financial year.
The agency is particularly concerned about sponsored posts, brand collaborations, and non-cash perks like free travel, meals, and promotional products that influencers receive in exchange for exposure. These are considered part of gross income and must be reported in annual tax returns. While receiving a free gift with no formal agreement may not attract tax, any arrangement involving a brand agreement to promote a product or service is taxable - even if no money changes hands.
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