Social Media Influencers and Tax: What You Need to Know (and Do)
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If you're an influencer, content creator, or anyone earning money through digital platforms, there's one thing you can't ignore: tax. Whether you're being paid in cash, products, or even cryptocurrency, the South African Revenue Service (SARS) expects you to declare that income.
Why You Need to Pay Tax as an Influencer
Under Section 1 of the Income Tax Act (ITA), any amount received or accrued in the production of income is taxable. This means if you're getting paid (or even rewarded) for doing something that generates income, it's likely taxable. This includes:
Sponsored posts
Paid brand deals
Affiliate income
Free products in exchange for promotion
Appearance fees
Crypto or foreign payments
Even if you're not paid in cash, SARS still sees this as a "benefit" that must be valued and declared. Non-cash benefit is taxable because it has measurable economic value, even if no money changing hands.
What Does "In the Production of Income" Mean?
In simple terms: if you're doing something with the intention of making money, the resulting income is taxable. SARS doesn't care whether you're doing it as a side hustle or full-time — the moment you're rewarded for your platform, you're a taxpayer.
Who is a Social Media Influencer?
From a tax perspective, an influencer is someone who earns through digital platforms in a systematic, organised way with the intention of generating profit. That usually means you're carrying on a "trade", as defined in section 1 of ITA to include “every profession, trade, business, employment, calling, occupation, or venture”. This broad definition includes one-off promotions, regular content creation, affiliate marketing, and anything else aimed at generating income.
What is Considered a Trade?
SARS may consider the following activities as trade:
Posting occasionally and receiving free products – possibly taxable casual income
Structured brand partnerships and paid sponsorships – definitely a trade
Practical Examples
Example 1: You get a skincare kit worth R3,000 in exchange for a product review on Instagram. That R3,000 is income.
Example 2: You're paid R10,000 for attending and posting about a brand event. This is also taxable.
Example 3: You get paid in cryptocurrency for a TikTok campaign. SARS treats this like money, you should convert it to rands and declare it.
Tax Deductions for Influencers
If you're carrying on a trade, you can deduct expenses actually incurred in producing that income. This includes:
Travel for work
Equipment (camera, phone, lighting)
Home office expenses
Data and software
Marketing spend.
You can also claim wear-and-tear (capital allowances) for your equipment.
VAT and Influencers
If you earn more than R1 million in a 12-month period, you're required to register for VAT.
But even before that, you may encounter barter transactions — like trading a post for a product or service. These are treated as two separate taxable supplies for VAT purposes:
You must account for output VAT on the market value of what you provide
The other party must do the same on what they supply
Relevant VAT Sections:
Section 1: Consideration includes money and other forms of value
Section 10(3): If payment isn't in money, use the fair market value
Section 9(1): Time of supply is the earlier of payment or invoice
Source of Income (Cross-border Issues)
If you work with brands outside South Africa, the source of your income is based on where the service was performed.
Under SARS Interpretation Note 14 and cases like CIR v Van Zyl, services are considered sourced in South Africa if performed here, regardless of where the payment came from.
Dos and Don’ts for Influencers
DO:
Register with SARS as soon as you start earning
Keep a record of all payments — including cash, EFT, products, or crypto
Declare your income accurately in your tax return
Work with a tax professional to manage provisional tax and claim deductions
Track business expenses and keep invoices
DON’T:
Assume you're not a "real business" and ignore tax obligations
Hide or ignore freebies and barter deals
Delay registration or skip filing tax returns
Use WhatsApp or DMs as your only proof of income — formal records matter
Set Up for an Influencer
Depending on your income and growth plans, choose the right structure:
Individual Taxpayer (most common)
Use your personal tax number
Submit annual tax returns and provisional tax if required
Sole Proprietorship
Still under your name, but can open a business bank account
Easier tracking of income/expenses
Private Company (Pty Ltd)
Ideal for high earners or full-time influencers
Separates personal and business finances
Subject to company tax and may need VAT registration
Final Word
If you're getting paid to post, promote, or create, you're in business. And with that comes tax responsibility. SARS is actively targeting digital earners, so it's not worth the risk. The good news? With a little planning and the right advice, you can stay compliant, claim deductions, and avoid nasty surprises.
Register for CIBA’s CPD event on Tax and Social Media Influencers, and learn more about how to turn the SARS’s crackdown into a service opportunity.
What you will learn:
How SARS is taxing influencers right now, including freebies, sponsored trips, and barter deals
The key thresholds for income tax, provisional tax, and VAT, and how they apply to influencers
How to value non-cash benefits like clothing, events, and travel
What records SARS expects
How accountants can turn influencer tax advisory into a profitable niche service
Risk areas: what SARS is targeting in audits, and how to protect clients.
