Understanding Influencer Income in South Africa

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As social media continues to evolve, more South Africans are turning their creativity into income—whether through sponsored posts, affiliate links, or gifted products. If you're one of them, it's important to understand how SARS views this kind of income and what that means for your tax responsibilities.

What Is Influencer Income According to SARS?

Influencer income isn’t limited to cash payments. SARS considers any benefit received in exchange for promotional activity as income. This includes:

  • Sponsored posts or brand collaborations

  • Affiliate commissions

  • Ad revenue from platforms like YouTube or TikTok

  • Subscription income from platforms such as Patreon

  • Gifts or PR packages received in exchange for promotion

  • Sponsored travel, accommodation, or experiences

  • Digital product sales, such as e-books, presets, or courses

Even if you're paid in products or services rather than money, SARS expects you to declare the fair market value of those items. Under the Income Tax Act, all forms of compensation—monetary or otherwise—are considered taxable income (SARS clarification).

Declaring Your Income as a Freelancer or Self-Employed Individual

If you earn money as an influencer or social media, this is considered other income and must be declared as freelancer/self-employed income in your tax return. You’ll need to include both:

  • All income received (cash and non-cash), and

  • Any business-related expenses you want to claim

Because this type of income is not subject to PAYE (Pay As You Earn), you’ll also need to register as a provisional taxpayer. This means submitting:

  • Two provisional tax returns during the year (based on estimated income), and

  • One annual income tax return after the tax year ends

Do You Need to Register for Tax?

If your total income from these activities exceeds the annual tax threshold (R95,750 for individuals under 65 in the 2024/25 tax year), you must register with SARS and submit tax returns. Most influencers will fall under the provisional taxpayer category due to the nature of their income.

Nnini says: ‘Also, I’ve come across instances where influencers who run their businesses full-time prefer to register companies and trade though them, invoicing clients via the company and paying themselves a salary. In such cases, PAYE (Pay-As-You-Earn) obligations may come into play, I’m not sure if this is something worth including, but I thought it might be helpful to mention.’

Keeping Good Records

To make tax time easier and more accurate, it’s helpful to keep track of:

  • All income received—both cash and non-cash

  • Business-related expenses such as equipment, software, and travel

  • Receipts and invoices

  • Valuations of any gifted items

SARS requires that records be kept for at least five years from the date of submission of your return (SARS recordkeeping guide). These records must be stored safely and be available for inspection if requested.

Remember: the burden of proof lies with the taxpayer. SARS expects you to support your claims with documentation, so keep clear and consistent records of all transactions, including any agreements or communications with brands.

You can deduct expenses that are wholly and exclusively for your business. This might include:

  • Camera equipment or editing software

  • Website hosting

  • Travel costs for business events

  • A portion of your phone or internet bill if used for business

If you use items for both personal and business purposes (like your phone or laptop), only the business portion can be claimed. Be thoughtful and consistent in how you split these costs.

Don’t Forget About VAT

If your total revenue—regardless of whether it’s received in cash or other forms—exceeds the VAT registration threshold of R1 million in any consecutive 12-month period, you are required to register for VAT with SARS. This applies even if some of your income comes from gifted items or services, as long as they are part of your business activity (Grant Thornton guide).

If you're earning through social media—even in small amounts—it’s worth checking whether you need to register with SARS. The rules aren’t new or unique to influencers, but the way income is received can make things a little more complex.

With the right support and systems in place, it’s manageable—and ensures you stay on the right side of the law. If you’re unsure whether your activity counts as taxable income, or you’d like help setting up your records, feel free to get in touch. I’m here to help you navigate it all with confidence.