On September 5 2025, the SA Revenue Service (Sars) released a media statement reminding social media influencers of their obligation “to declare income earned from brand collaboration, sponsored content, and affiliate marketing, whether they have been paid in cash, products, or services”.
In this edition of Business Law Focus, host Evan Pickworth interviews Megan Landers, senior manager at specialist tax firm AJM, about what this means for those getting paid to post.
Megan Landers: Tax facts for social influencers
Sars recognises how the influencer economy has evolved into a legitimate and professional industry. Many SA influencers treat their platforms as full-time careers, positioning themselves as entrepreneurs who can be classified as sole proprietors or independent contractors.
What is a social influencer?
A social influencer (or simply “influencer”) is an individual with a significant following on social media (Facebook, YouTube, TikTok, Instagram and so on) who has established credibility in a specific niche, such as fashion, technology, travel, health or lifestyle.
These individuals use their online presence to influence opinions and purchasing decisions, often through partnerships with brands that pay them to promote their products and services. In essence, influencer marketing is a modern form of advertising driven by authenticity, creativity and connection.
How are social influencers taxed in SA?
SA follows a residence-based tax system, meaning that if you are an SA tax resident, you are taxed on your worldwide income: any amount received “in cash or otherwise” falls into your “gross income”, subject to specific exclusions and exemptions.
As Sars alluded to, an influencer (like all other SA tax residents) is taxed on all forms of compensation, including cash, products and services. Brands compensate influencers through monetary payment, “free” products or other benefits in exchange for promoting their goods or services.
For example:
- If an influencer is paid to film an “unboxing video” or review products, they are providing a marketing service for the company that provided them with the products. This is taxable income.
- If an influencer receives a hamper or PR package from a company that they have worked with in the past, this too could potentially be considered taxable because the company knows the influencer is likely to share the hamper or PR package on their platform, thereby marketing the company’s products or services. This is referred to as income received in kind and could potentially form part of the influencer’s gross income. For an item to truly be considered a gift — a gratuitous receipt — there must be no expectation of reciprocity.
Many influencers also indicate that their social posts are not sponsored by any particular brand. Still, they do make posts about specific products they have purchased, used and loved themselves.
Sometimes the company later sends a hamper of their major products or new promotions to thank the influencer, as their sales soar after their post. Arguably, that hamper could be considered gross income for the influencer, especially if they worked with the company before.
What can influencers deduct as business expenses?
Influencers, like any other sole proprietor or independent contractor, incur expenditure and losses in the production of their income. The good news is that influencers can deduct certain business expenses from their income, provided they are not of a capital nature incurred in the production of their income and for purposes of trade.
Tax-deductible expenses typically include:
- The rental of premises: for example, if the influencer is renting a studio or space to shoot their social media content;
- Salaries and wages for any personnel they have hired;
- Telephone and internet expenses;
- Subscriptions to computer or editing software; and
- Stationery and printing.
However, the cost of your cellphone (not to be confused with the cost of, for example, airtime or data), camera, computer, or any other equipment used to shoot, produce and publish your content on social media platforms is not tax-deductible as they are capital in nature. Instead, you may be able to claim wear-and-tear allowances on those assets.
In short, influencers are taxed on their net profit (income minus allowable expenses) at their marginal tax rate.
Compliance obligations for influencers
To remain compliant, influencers should:
- Register for income tax with Sars;
- File annual personal income tax returns; and
- Declare all income from brand collaborations, sponsored content and affiliate marketing, whether paid in cash, products, services, or related expenses.
To the extent required, influencers should also register for provisional tax. Provisional tax is not an additional tax but merely a means to settle your income tax in advance, thereby avoiding a hefty tax bill upon assessment. A provisional taxpayer typically includes someone who receives income from sources other than, or in addition to, employment income — for example, interest, dividends, and/or income earned from content creation/social media — when, together, it exceeds the taxable income of R30,000 per tax year.
It is important that you regularly evaluate your tax matters, because a taxpayer can be a provisional taxpayer in one tax year and a non-provisional taxpayer in the next. This is important because it will ensure you avoid paying penalties for the late submission of a tax return or provisional tax returns.
Do influencers need to register for VAT?
Influencers may also need to register for VAT depending on the value of their annual turnover and the type of social media influencing they render.
You must register for VAT if:
- You carry on an enterprise; and
- The value of your taxable supplies exceeds R1m in any 12-month period.
Certain activities are not regarded as carrying on an “enterprise”. For example, the supply of financial services, residential accommodation, hobbies or any private recreational pursuits not conducted in the form of a business. Arguably, some people engage in social media activities as a hobby, but if you start earning an income from your hobby, it could be considered as carrying on an enterprise. A person must register for VAT if the value of taxable supplies made or to be made is more than R1m in any consecutive 12-month period. Voluntary registration is possible under certain circumstances.
Do influencers need to register for PAYE?
If an influencer employs staff to assist them in running their influencer business, such as videographers, editors or managers, employer tax obligations may apply.
This includes:
- Pay as you earn (PAYE): deducted from employees’ remuneration.
- Unemployment Insurance Fund (UIF): Influencers are required to register with the UIF and contribute towards the fund if they employ staff in SA for more than 24 hours per month. The monthly contribution for UIF is 2% of the employee’s gross monthly salary, capped at R17,712/month. The employer is required to deduct 1% of the employee’s gross salary per month, and the employer contributes 1%.
- Skills development levy (SDL): SDL applies once the employer’s total remuneration exceeds R500,000/year.
Keep accurate records (and get professional advice)
Building a career as an influencer comes with creative freedom, but also financial responsibility. It is prudent for influencers to keep accurate records of all income and expenses to file accurate tax returns.
Do not let tax obligations deter you from pursuing a career in influencing. Whether you’re new to content creation or already established, getting expert tax advice can help you manage compliance and do what you do best.
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