Taxing times: influencers scramble to keep up with rules

INFLUENCERS are firmly on SARS’s radar. The issue is no longer whether their income, cash or otherwise, is taxable, but how the revenue service will enforce compliance in a fast-growing, often murky, digital economy.

- ANITA NKONKI

For now, SARS appears to be relying on voluntary compliance, making it clear that all forms of remuneration - cash, products, services or travel - are taxable.

Edward Kieswetter, the SARS Commissioner, said: “SARS is looking forward to working with this segment to provide clarity and certainty, but also to provide them with a seamless taxpayer experience. SARS is more than willing to assist honest taxpayers to comply with their tax obligations. lam reminding social influencers to uphold their end of the bargain.”

SARS has also highlighted that although the social-influencer segment has its own nuances, it is no different from other taxpayer segments in that income earned must be disclosed and taxed.

The issue of influencer tax came under renewed spotlight last month, when several young South African influencers were reportedly paid up to R100 000 each to promote the controversial Alabuga recruitment programme in Russia. The campaign sparked widespread criticism, not only for its ethical concerns but also for raising questions about whether this income had been declared, in light of SARS’s growing focus on digital earners.

Despite this, many influencers remain unsure how to apply the rules, especially when it comes to declaring non-cash benefits or structuring their activities to comply with tax obligations.

Ndivhuwo Muhanelwa, an author and contentpreneur, said: “Like many influencers, I started just enjoying the payments and freebies.

“The mistake is thinking, ‘I’m not a business; I’m just creating content.’ That’s ignorance, and it’s dangerous. The moment you start earning, you're running a business whether you like it or not. I now treat myself as a contentpreneur.”