New tax regulations for South African influencers and gig workers

SOUTH African social influencers and gig economy participants are now firmly in Sars’ crosshairs, following the revenue authority's announcement of a new taxpayer segment aimed at tightening compliance in the digital space.

- DIEKETSENG MALEKE

This development signals a clear shift in Sars’ strategy: all income, whether received in cash, products, travel, or other perks, must be declared and taxed.

Earlier this month, Sars issued a media release outlining its zero-tolerance stance on undeclared income from influencers and gig workers. The announcement also guided how these earners should meet their tax obligations. As digital marketing and online entrepreneurship continue to evolve, Sars is determined to ensure that these emerging income streams are not excluded from the tax net.

According to Jashwin Baijoo, associate director and head of strategic engagement and compliance at Tax Consulting SA, this new segment, titled “Social Influencers and the Gig Economy,’ builds on the success of Sars’ High-Wealth Individual Unit and Crypto-Asset Revenue Augmentation Unit.

With R36.5 billion in taxes written off last year, Sars is under pressure to recover lost revenue. While increasing VAT or adjusting income tax brackets remains politically sensitive, the revenue authority is now turning to alternative taxpayer groups to fill the gap, he says.

Social influencers often earn through brand collaborations, affiliate marketing, sponsored content, and other nontraditional arrangements. Sars has made it clear that all forms of compensation, monetary or otherwise, must be declared. According to the newly released 2024 South African Influencer Benchmark Report, local influencers can charge anything between R3,000 and R18,000 for a single Instagram post and up to R8,000 for a reel.