SARS urges social media creators to comply with tax obligations

The South African Revenue Service (SARS) has warned social media influencers to declare income earned through social media activities, including sponsorships, brand partnerships, advertising revenue, and products received in exchange for promotion.

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This warning is part of the revenue service’s effort to improve tax compliance among digital content creators.

Social media creators and tax compliance

The revenue service regards social media influencing and content creation as a form of trade, treating affiliate marketing, product promotion, subscriptions, brand partnerships, and more as an exchange of a service for income.

“Social media influencers and content creators who earn income from their activities are generally regarded by SARS as carrying on a trade or business activity. Income earned from creating content, promoting products or services, affiliate marketing, advertising revenue, sponsorships, subscriptions, brand partnerships, and similar activities is normally taxable and must be considered for tax purposes,” SARS said.

They declare that social media influencers are deemed sole proprietors.

“Depending on their circumstances, many social media influencers and content creators operate as sole proprietors, meaning that the individual and the business are legally the same person.”

Influencers and Content Creators: understand your tax obligations. Access the SARS guide and webpage for information on declaring income and keeping records: https://t.co/xIBtJscWbi

#ContentCreators #Influencers #YourTaxMatters https://t.co/NYInzRhNZO

— SA Revenue Service (@sarstax) October 26, 2026

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SARS compliance guideline

SARS’s guideline, available on its website, provides a clear outline of who is considered to comply, what they need to report, what SARS considers income, how to comply, and how social media activity will be treated.

Social media influencers who earn an income using their own name are considered sole proprietors and are urged to register for Personal Income Tax under their name.

SARS further explains that if the content creator’s business grows and becomes more formal, they will need to meet their tax obligations under the normal tax system.

“The entity must be registered with the Companies and Intellectual Property Commission (CIPC), after which it will receive a Company Income Tax (CIT) number,” they explained.

Penalties for failure to comply

SARS advised that influencers and content creators should keep a record of all activities that resulted in income earned, including:

• Contracts, invoices, and receipts
• Bank statements and platform earnings statements
• Sponsorship agreements and affiliate reports
• Digital proof of content posted
• Proof or reasonable valuation of products, services, travel, accommodation, vouchers, or other benefits received in exchange for content or promotion

These records should be available upon request from SARS.

According to IOL, the tax revenue service further warned that creators who fail to submit their tax returns or pay outstanding tax on time could face penalties and interest.

Featured image: iStock/Jacob Wackerhausen

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