The Tax Implications of Social Media Influencers in South Africa: A Critical Analysis

The Tax Implications of Social Media Influencers in South Africa: A Critical Analysis 

As of 2025, The South African financial system faced an unemployment rate of 31,4%. (1).  Furthermore, as of 2023, a sector of low-income earners amounted to roughly 37.9%. (2) Inflation has acted as a regressive element in the economy, particularly for low-income earners. To survive in amidst rising prices (inflation), a various number of individuals have  resolved to not rely on one source of income, as it can be discontinued at any time. 

Amongst these various sources of income, this article will delve deep into the influencer  profession in this age. It will further analyse whether the income or benefits influencers  receive from other companies should be subject to tax, and whether the title itself constitutes  acting as an individual or entrepreneur. 

Gross Income definition 

In Section 1(1) of the Income Tax Act, gross income is defined as “the total amount, in cash  or otherwise, received by or accrued to or in favour of the resident, during such year of  assessment, excluding receipts and accruals of a capital nature” (3) 

This definition is universal and is not simply constrained to cash or money received. Gross  income additionally includes any value accrued to a taxpayer and benefits received, even if  they are not in the form of cash. This means that any form of income is subject to be taxed,  provided it is not of a capital nature. (4) 

In the SIR v Trust Bank of Africa Ltd case, the court held that the intention of the taxpayer  must be observed in order to determine whether or not their purpose is to generate income (5). Applying this to influencers, we should pose a query such as: “Do they have the intention  to generate income”?

Influencers vs Individuals 

The specific profession that people pursue does not deviate from the fact that they remain  natural persons or individuals. SARS observes the inflow of income or benefits, and the  manner in which it is received. Its primary objective is to collect tax, purposed to fund the  community’s needs and raise revenue for government expenditure. 

The term “influencer” involves a person providing services and promoting a business’s  products, as a paid role. This falls under Section 1(1) of the Income Tax Act 58 of 1962  because they are receiving income from the services they provide. 

Categorizing influencers as individuals who are taxed on their income or benefits they  receive from different organisations promotes equality. This is because all working  individuals are grouped into one basket, despite their profession or side hustle, as long as  income is flowing in. The South African Revenue Services (SARS) declared that the  influencer industry is no different from any other taxpayer industries. (6) 

This means that an influencer can be seen as carrying on a trade as an entrepreneur, facing the  same tax consequences. 

Tax registration and compliance 

An individual is required to register for income tax with SARS within 60 days of receiving  their income. Gifts, sponsored trips and cash payments are all considered income for  influencers, and therefore taxable. (7) 

In light of Section 23(1)(a) of the VAT Act, any person carrying on an enterprise is required to  register for VAT (Value-Added Tax) (8). Should individuals want to voluntarily register for VAT, they should earn over R120 000 within a 12-month period. However, registration is  compulsory for them once they make more than R 2.3 million within a 12-month period. 

Tax compliance for influencers 

Since influencers are considered individuals, they must comply with the SARS Regulations  and pay tax as soon as possible to avoid penalties. Tax compliance is a recurring ethical  practice, not a once-off event. 

To remain compliant to SARS, individuals are required to register for tax when they are  required to do so, maintain meticulous records of all their income earned and expenses  accrued, pay any tax liability before deadlines to avoid penalties, and update their details on  the SARS website should there be any minor or major changes. 

Tax compliance saves money by blurring out fines and interest. It reduces the chance  of facing a criminal charge for non-compliance, maintains a good tax clearance certificate  and enhances your reputation built on trust and transparency. (9) 

Conclusion 

Tax is a broad concept and applies to every person who has a stream of income. This is based  on the fact that tax is a compulsory regulation that people should abide to. 

When people consider doing a side hobby or job, such as being a social media influencer,  they should carefully evaluate whether or not SARS will require them to pay tax. They  should question their intentions on pursuing that kind of profession, and reach a conclusion  on whether it is for pursuing a profit-making scheme or not. Self-awareness and more  assistance from tax practitioners can lead to less confusion and more tax compliance.

A potential reform for tax to become a less complicated sector is for SARS to provide more  comprehensive Interpretation Notes and legislation. These sources of tax law and regulations  should clearly dissect who an individual is no matter their profession, what is expected from  them and how they can be up to date with their tax payables or returns. 

Reference(S): 

1. Statement on the Cabinet Meeting of 25 February 2026. s.l. : Government  Communication and Information System (GCIS), 2026. 
2. Poverty Trends in South Africa: An examination of absolute poverty between 2006 and  2023. s.l. : Statistics South Africa, 2025. 
3. SARS. [Online] [Cited: 25 February 2026.] https://sarsdev.sars.gov.za/wp content/uploads/Legal/Drafts/LPrep-Draft-2020-40-Draft-IN-on-the-taxation-of-the receipt-of-deposits-23-July-2020.pdf. 
4. Capital Versus Revenue: Some Guidance. Oliveier, L. Johannesburg : s.n., 2012. 
5. Secretary for Inland Revenue v The Trust Bank of Africa Ltd. 1975 (2) SA 652 (A); 37  SATC 87, South African Law Reports (SA) : Supreme Court of Appeal, 1975. 
6. South African Revenue Services. SARS. [Online] [Cited: 25 February 2026.]  sars.gov.za. 
7. South African Government. [Online] [Cited: 24 February 2026.]  https://www.gov.za/services/services-residents/world-work/tax/register taxpayer#:~:text=You%20must%20register%20within%2060,be%20registered%20on %20the%20system.. 
8. [Online] [Cited: 25 February 2026.]   https://www.gov.za/sites/default/files/gcis_document/201505/act-89-1991s.pdf. 
9. BGR Chartered Accountants (SA). [Online] [Cited: 24 February 2026.]  https://www.bgr.co.za/understanding-tax-compliance-in-2025/.