The South African Revenue Service (SARS) has issued another warning to social media influencers and content creators, reminding them that money earned online must be declared for tax purposes.
According to a report by IOL, the warning covers income from sponsorships, advertising, brand partnerships and even products received in exchange for promotional content.
SARS stressed that these tax obligations apply regardless of how many followers a creator has.
Online earnings are taxable
SARS considers influencers who earn money through content creation to generally be operating a business or trade.
This means income from platforms, affiliate marketing, paid promotions, subscriptions and brand collaborations must be considered when completing tax returns.
Creators who earn money through social media alongside their regular jobs must also account for that additional income.
SARS explained that many influencers operate as sole proprietors, meaning their business earnings must be declared on their individual income tax returns.
Free products may also count
Influencers who receive free products or services in exchange for advertising are not necessarily exempt from tax.
According to SARS, non-cash benefits received for promotional work must also be declared.
These benefits can include clothing, electronic devices, vouchers, travel expenses, accommodation and other sponsored experiences.
Creators must keep records of these arrangements, including evidence of the products or services received and their monetary value.
Influencers could face penalties
SARS warned that failing to submit tax returns or settle outstanding tax payments on time could result in penalties and interest.
Some influencers may also qualify as provisional taxpayers, particularly those earning income outside their regular salaries.
Provisional tax allows qualifying taxpayers to make income tax payments during the year instead of facing one large payment later.
The revenue service encouraged creators to maintain accurate financial records, including contracts, invoices, bank statements, sponsorship agreements and platform earnings reports.
SARS urges creators to comply
The warning highlights the importance of treating online content creation as a business when it generates income.
SARS urged influencers to declare both cash payments and non-cash benefits accurately to avoid underreporting their earnings.
Those with outstanding tax payments can settle their accounts through SARS eFiling or electronic funds transfers at participating banks.
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