JHB 
The digital economy is reshaping South Africa’s tax landscape, and SARS is responding with sharper focus. For the 2025 tax season, social media influencers are firmly in SARS’s sights. With billions in unpaid taxes at stake, the message is clear: freebies are not free.
Why influencers are on SARS’s radar
The influencer economy has grown rapidly, with creators leveraging platforms like Instagram, TikTok, and YouTube to secure brand partnerships and promotional deals. These arrangements often include:
Sponsored posts and brand collaborations
Free products, trips, or hospitality perks
Endorsement deals and affiliate partnerships
While influencers may view these as “gifts” or perks of the trade, SARS regards them as taxable income under the definition of gross income in the Income Tax Act.
Declaring benefits correctly
Influencers must declare both monetary and non-monetary income. This includes:
Cash payments from brands or agencies
Products or services received in exchange for promotion
Sponsored trips, meals, or accommodation tied to brand exposure
Failure to declare these benefits may lead to administrative penalties (up to R16,000 per month for outstanding returns) or, in severe cases, criminal prosecution for tax evasion.
The role of AI and data analytics
SARS is investing heavily in AI and advanced data-matching systems to detect undeclared influencer income. By cross-referencing digital footprints, advertising contracts, and international reporting standards, SARS can quickly identify discrepancies between lifestyle and declared earnings. Assuming you are “under the radar” is no longer a safe bet.
Risks of non-compliance
Influencers who fail to declare taxable income face:
Rejection of returns or assessments
Costly penalties and interest charges
Heightened audit scrutiny
Reputational harm, especially when exposed publicly
With SARS pursuing a R513 billion revenue shortfall this fiscal year, enforcement is expected to intensify.
Professional tax guidance for influencers
Influencer income often spans multiple sources and forms, making compliance complex. Working with a tax professional ensures:
Accurate categorisation of cash and non-cash benefits
Proper record-keeping for contracts, invoices, and receipts
Guidance on deductible expenses (e.g., equipment, internet, photography costs)
Peace of mind that SARS obligations are fully met
Final thoughts
The age of informal influencer earnings is over. SARS’s approach is uncompromising: declare all income, whether cash or perks, or face the consequences.
At MMS Group, we help content creators and digital entrepreneurs navigate this evolving compliance environment. If you are an influencer or work with them, reach out to our tax specialists to ensure your income is properly declared and SARS-compliant.