South Africa’s new class of social media millionaires is finding itself in the crosshairs of the taxman. The South African Revenue Service (SARS) has declared that it will no longer ignore undeclared income in the booming influencer economy – from luxury trips and designer giveaways to sponsored gadgets and brand deals.
This comes as SARS intensifies its R513 billion revenue recovery drive to plug holes in the fiscus, with Commissioner Edward Kieswetter vowing to be “unrelenting” in pursuit of the revised R1.84 trillion tax target for 2024/25.
Speaking to CapeTalk, tax expert Mohau Lebese explained that many influencers may not even realise they are breaking the law. “Most of these influencers started out as ordinary people making videos at home. They went viral, gained followers, and suddenly brands were knocking. But the problem is they don’t understand tax compliance. A free phone, a paid trip, even a free meal in exchange for promotion – SARS sees all of that as gross income,” Lebese warned.
SARS has already begun deploying artificial intelligence and advanced data-matching systems to track undeclared income. According to Tax Consulting South Africa, assuming you’re invisible to the taxman is “a very risky gamble.” Non-compliance can result in stiff penalties ranging from R250 to R16,000 per month per outstanding return – and in serious cases, even criminal charges for tax evasion.
Lebese drew a clear line between casual freebies and taxable sponsorships: “If a brand sends you a gadget just to try out, that’s one thing. But the moment you agree to promote it in exchange for keeping it, SARS classifies that as taxable income.”
The warning signals a new era of scrutiny for digital entrepreneurs who have long operated outside traditional tax systems. With SARS sharpening its digital surveillance tools, the era of ‘influencers flying under the radar’ may be coming to a dramatic end.
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